Our role in EMR

Electricity Market Reform (EMR) is a high profile programme at the heart of government, and we’re proud that DECC has chosen us to undertake the role as the EMR Settlement Services Provider on behalf of the Low Carbon Contracts Company (the CFD Counterparty) (LCCC) in relation to Contracts for Difference (CFD) and on behalf of the Electricity Settlements Company (the Capacity Market settlement body) in relation to the Capacity Market.

Our role as CFD Settlement Services Provider

As Contract for Difference (CFD) Settlement Service Provider, it is our responsibility to run the CFD System and operate the processes that enable CFD payments to be calculated and settled.

This includes:

  • Collecting metering data for CFD Generators.
  • Maintaining the systems that allow us to collect, securely store, and where appropriate securely transmit the data necessary for CFD settlement.
  • Managing settlement of payments by generators and suppliers.
  • Holding and managing reserve funds.
  • Calculating payments and charges.
  • Invoicing and collecting payments due.

This diagram shows how principal information flows between us as the CFD Settlement Services Provider and the other parties involved in CFD work:

CfD information flow

Our role as CM Settlement Services Provider

Our responsibility as Capacity Market (CM) Settlement Services Provider is to manage settlement of payments, on behalf of the Electricity Settlement Company, to and from Capacity Providers and Suppliers.

This includes:

  • Collecting metering data for Capacity Market Providers.
  • Setting up and maintaining the systems that allow us to collect, securely store, and where appropriate securely transmit the data necessary for Capacity Market settlement.
  • Managing settlement of payments by Capacity Providers and Suppliers.
  • Calculating payments and charges.
  • Invoicing and collecting payments due.

This diagram shows how information flows between us as the CM Settlement Services Provider and other parties involved in CM.

diagram-2