EMRS has issued the monthly Capacity Market Credit Cover and Supplier Charge schedules for the 2025/26 Delivery Year. The schedule contains the following:
- A Supplier’s Credit Cover requirements;
- Monthly deadlines for provision of Credit Cover; and
- A Supplier’s monthly Supplier Charges.
This impacts Suppliers who submitted a non-zero Demand Forecast to us at the start of June 2025.
When do I need to have my Credit Cover in place?
Suppliers are required to lodge Credit Cover by no later than 12 Working Days before the start of the Delivery Year. Suppliers’ first deadline to lodge Credit Cover for October 2025 is by 5:00 p.m. on 15 September 2025.
Requirements for lodging Credit Cover
Credit Cover is accepted as either cash, via a Letter of Credit or a combination of the two. When lodging Credit Cover you need to email the following details to the Service Desk via [email protected]:
- Amount
- Format (cash or LoC)
- Date it will be received in bank (if cash)
- LoC Number (if LoC)
- A copy of the SWIFT message sent to ESC’s bankers (if LoC)
Lodging Cash Credit Cover
Our bank account details are available on page 6 of WP45 – Supplier Capacity Market. If you are lodging a cash amount as Credit Cover, please notify us of the day you intend to lodge this money. This will help us track your payment and prevent unnecessary reminder emails.
Options for lodging via a Letter of Credit
There are three options:
Option 1: Letter of Credit via SWIFT message
Request your bank to issue an MT760 type SWIFT message to EMRS – this is better than sending a physical letter to EMRS.
Option 2: Hard copy Letter of Credit
- Copy and paste the example text made available in the approved Letter of Credit (LoC) templates available in the appendices of WP45 – Supplier Capacity Market.
- Add the specifics relating to your individual requirements. Please note that no changes can be made to the approved templates.
Please ensure that you use the correct LoC template and note the LoC has a valid expiry date of 6 months from the date of issue.
Option 3: Updating existing Letter of Credit
If you have previously lodged an LoC with EMRS, it can be amended to cover any new requirements.
You may use the SWIFT process or, if lodged through using a physical letter, email a copy to EMRS via [email protected], or post it to:
EMR Settlement Ltd,
350 Euston Road,
London,
NW1 3AW.
G14 – Supplier CM Credit Cover provides further guidance, as well as further information being available on step 3 of our Stakeholder Support for Suppliers – CM webpage.
Settlement Data
We’ve published the following in the Supplier Settlement Data section of our website:
- Total Annual Capacity Payments 2025/26 – available in the Key Payment Figures 2025/26.
- Monthly Weighting Factors for 2025/26 Delivery Year – available via the ‘Monthly Weighting Factors’ drop down.
Capacity Cleared Price (CCP) is adjusted for UK Consumer Prices Index (CPI) for T-4 and T-3 Auctions and this information via the ‘Capacity Cleared Price (CCP) is adjusted for UK Consumer Prices Index (CPI)’ drop down.
Once the Delivery Year commences you will be able to view the Historical Dashboard, which includes the historical Auction Capacity, payments, details of suspended and non-suspended capacity and the numbers of CMUs. Also, Suppliers can monitor the NESO EMR Delivery Body Capacity Market Registers against the applicable Auctions to monitor any changes that might impact the Total Annual Capacity Payments.
How are my Supplier Charges calculated?
G15 – CM Supplier Payments provides information on how Supplier Charges are calculated. Unlike the Settlement Costs Levy, the Supplier Charge and Credit Cover requirements will vary from month to month as monthly weighting factors are applied. As a result, Supplier Charges and Credit Cover requirements will be higher over winter months compared to the summer months. Additional information is available on the Stakeholder Support for Supplier CM webpage.
What are the key dates I need to know?
| Activities | Date |
| EMRS issues Schedule of Supplier’s Monthly Supplier Charges and Credit Cover requirements | 31 July 2025 |
| Suppliers’ first deadline to lodge Credit Cover for October 2025 | 5:00 p.m. on 15 September 2025 |
| EMRS invoices Suppliers for October’s Supplier Charge | 1 October 2025 |
| EMRS issues revised Schedule of Supplier’s Monthly Supplier Charges and Credit Cover requirements | 31 March 2026 |
| Suppliers’ first deadline to lodge Credit Cover based on revised requirements for May 2026 | 5:00 p.m. on 14 April 2026 |
| Suppliers to be invoiced for May’s Supplier Charge based on the revised schedule | 1 May 2026 |