Tier 1 Disputes – Credit Cover Deadline
Following Tier 1 Disputes Results Day on 28 November 2023, those Conditionally Prequalified Applicants are required to provide Credit Cover within 15 Working Days (WDs) after Tier 1 Disputes Results...
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EMR Settlement Limited (EMRS) is a wholly owned subsidiary of Elexon Limited. EMRS has delivered the role of EMR Settlement Services Provider on behalf of the Low Carbon Contracts Company (the CfD Counterparty) (LCCC) in relation CfD and on behalf of the Electricity Settlements Company (the CM Settlement Body) (ESC) in relation to the CM.
This document will support Capacity Providers in defining the methods for lodging Credit Cover as part of the Prequalification process.
The information highlighted in this document includes:
The Stakeholder Support for Capacity Providers webpage also provides guidance on how to lodge credit cover.
Conditionally Prequalified Applicants are required to provide Credit Cover within 15 Working Days (WDs) after Prequalification Results Day, this is 21 November 2023.
The process for lodging a Letter of Credit (LoC) is by requesting your bank to issue a MT760 type SWIFT message rather than sending a physical letter to EMRS. The approved LoC templates (no changes can be made to the approved templates) are available in Appendix 1 and 3 of WP35 – Applicant Credit Cover.
Please ensure that you use the correct LoC template and the LoC has a valid expiry date (6 months from date of issue).
Electricity Settlements Company (ESC) would encourage Applicants wishing to lodge an LoC to have this with EMRS by 14 November 2023 to allow sufficient time for processing. An LoC previously lodged with EMRS may be amended to cover any new requirements using the SWIFT process or if lodged through using a physical letter by emailing a copy to EMRS and post to: EMR Settlement Ltd, 350 Euston Road, London, NW1 3AW. Any copies of documentation sent to offices should also be emailed to Service Desk.
The bank account details are available on page 8 in WP35 – Applicant Credit Cover to lodge Cash Credit Cover. Please include the CMU ID, where possible, in the payment reference. If you are lodging a cash amount please can you notify of the day you intend to lodge. This will allow us to better track the Credit Cover received and stop you receiving reminder emails.
You will be able to find key information to support you for both CfD and CM schemesView More