EMR Settlement Limited (EMRS) is a wholly owned subsidiary of Elexon Limited, which was set up in March 2014, after Department for Business, Energy & Industrial Strategy (BEIS), formerly known as Department of Energy & Climate Change (DECC) recognised Elexon having the experience and capabilities to be the EMR Settlement Services Provider. BEIS saw the similarities between the data, systems and processes that successfully operate under the BSC and those required for Contracts for Difference (CfD) and Capacity Market (CM).

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 since then.

Governance

EMRS is delivered via a wholly owned subsidiary of Elexon and a managed services agreement is in place settings out the arrangements for the provision of shared services and resources between Elexon and EMRS.

In addition, contractual arrangements are in place with LCCC and ESC for the provision of the EMR Settlement Services Provider delivered by ourselves.

Funding

EMRS operating costs are funded via LCCC and ESC through the CfD and CM schemes. These funds are recovered from electricity Suppliers, via the Operational Costs Levy and Settlement Costs Levy. BEIS consult on the LCCC and ESC Operational Costs every three years and the next consultation should be launched in Autumn 2021.

We do publish the Operational Costs Levy and Settlement Costs Levy for Suppliers and this is accessible via the Key Figures for Payments on the Settlement Data for Suppliers webpage.