***Credit cover arrangements during the Capacity Market Standstill are set out in the BEIS’ response to its “Proposals for technical amendments to the capacity market” consultation***
In order to enter the Capacity Market Auction, Applicants may need to lodge and maintain Credit Cover with the Settlement Body, Electricity Settlement Company (ESC). Our Settlement Service Provider, EMR Settlement Limited (EMRS), operate this process on our behalf.
Any CMU that at prequalification results receives Conditional Prequalification notice must provide Credit Cover within 15 Working Days of receipt. The EMR Delivery Body are responsible for setting and updating Credit Cover requirements.
Credit Cover must be maintained until all Credit Obligations have been met (see the Electricity Capacity Regulations 60), the CMU Application is unsuccessful in obtaining an Agreement after the Auction or until a DSR becomes Proven.
Additional Credit Cover will also be required if a new build CMU has not reached its Financial Commitment Milestone (FCM) by the deadline communicated by the EMR Delivery Body. This additional Credit Cover must be provided within 15 Working Days of being notified of the increase.
Working Practice 35: CM Applicant Capacity Provider Credit Cover Process provides details on the following processes:
How to lodge Credit Cover in Cash or Letter of Credit
Monitoring LoC Validity and expiry
How to reduce Credit Cover
How to release Credit Cover
How drawing down of Credit Cover works
If you have any further queries on the above processes please call EMRS on 020 7380 4333 or email email@example.com.
Queries on Credit Obligations or FCM please call EMR Delivery Body on 01926 655300 or email firstname.lastname@example.org.