Following Prequalification Results Day on 6 November 2020, those Conditionally Prequalified Applicants are required to provide Credit Cover within 15 Working Days (WDs) after Prequalification Results Day; this deadline is 27 November 2020.
To support Applicants the EMR Delivery Body have published a Credit Cover Guidance document which includes the key dates, the process, identify the requirement within the DB Portal and supporting information. This news items details the process for Applicants to lodge Credit Cover.
Letter of Credit
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 a LoC to have this with EMRS by 20 November 2020 to allow sufficient time for processing.
A 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.
PLEASE NOTE: To help manage the impact of COVID-19, ESC and EMRS staff are working remotely until further notice. Any copies of documents sent to offices should be sent via email to [email protected].
Lodge Cash Credit Cover
The bank account details are available on page 7 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.
When you lodge Credit Cover you need to email the EMRS Service Desk stating the below information:
- CMU ID(s)
- Auction
- 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)
- If lodging for multiple CMUs in one LoC or bank transfer, the monetary break down.
Approval or Rejection Notice
Once Credit Cover has been lodged, EMRS will check to ensure it is valid and sufficient. Once the checks are completed, we will send you either an Approval or Rejection Notice. If you have registered with us, the notice is also sent to your Finance Authorities and Credit Cover contacts. A copy of the Approval of Credit Cover Notice is sent to EMR Delivery Body. You do not need to send a copy to EMR Delivery Body.
Capacity Provider Registration
If you are successful in the Auctions and you have not already registered with us, you will need to complete the WP22 – Capacity Provider Registration Form. This form provides us the information we will need in order to make Capacity Payments to you. These details will also assist in future Credit Cover return requests. WP22- Capacity Provider Registration provides further details on the registration process. If you would like to check the details we hold for you, please email EMRS Service Desk. To amend your registration details please follow WP31- Amending EMR Party Details.
Further information
EMR Delivery Body’s Prequalification process and the latest Pre-qualification Guidance identify the key milestones and activities required to deliver the Capacity Market Auctions in 2020-21. It will be worth visiting our Capacity Provider Stakeholder Support webpage. This webpage provides an interactive process map that details the activities and interactions you will have with EMRS as a Capacity Provider to support you in participating in the Capacity Market scheme.