Guidance and Publications

ESC Annual Performance Report 2015

Posted 06.07.2015

The Electricity Settlements Company (ESC) Annual Performance Report for 2015 provides an overview of the company’s role and activities within the UK’s Capacity Market. It details the ESC’s responsibilities in managing settlements, handling credit cover for capacity auctions, and overseeing financial management. The report covers the period from October 2014 to September 2015, a time when the ESC was preparing for its key settlement functions to commence in October 2016. It also reflects on the company’s solid financial performance and its readiness for future auctions and settlements.

Capacity Market Overview: The report begins by explaining the role of the Capacity Market (CM) in ensuring the UK’s energy security by providing capacity providers with a predictable revenue stream. It highlights the Electricity Settlements Company’s (ESC) role in overseeing the settlement of the CM and ensuring payments to capacity providers.

Settlement Activities: The document details ESC’s core activity of performing settlements, which involves making payments to and receiving payments from capacity providers. It also mentions the future collection of funds from electricity suppliers to make these payments.

Credit Cover and Auctions: The report discusses the management of credit cover, which is required from some capacity providers to participate in capacity auctions. It outlines the amounts managed and returned following the T-4 auction in December 2014 and the preparations for upcoming auctions.

Financial Management and Performance: ESC’s financial performance is reviewed, noting its prudent management and the return of surplus funds to suppliers. The report also looks ahead to ESC’s preparations for making its first payments to capacity providers following the Transitional Arrangements auction.