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.
When you lodge Credit Cover you need to email 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 validate to ensure that it is valid and sufficient. Upon the checks being completed we will send you either an Approval or Rejection Notice. If you have registered with us, then the notice will also be sent to your Finance Authorities and Credit Cover contacts. A copy of the Approval of Credit Cover Notice will be 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 haven’t already registered with us, you will need to register via My EMRS. This will provide 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. G25- My EMRS User Guide provides further details on the registration process. If you would like to check the details we hold for you, please email the Service Desk. To amend your registration details please do so through My EMRS.
EMR Delivery Body Credit Cover Guidance
The EMR Delivery Body have published an updated Capacity Market Credit Cover guidance document. This also includes information about how to use the EMR Delivery Body to ascertain your Credit Cover has successfully been approved in addition to receiving email confirmation via EMRS. This is detailed on page 16 of this guidance document.
Further information
It is worth visiting our Stakeholder Support for Capacity Provider webpage. This webpage provides an interactive process detailing the activities and interactions you’ll have with EMRS as a Capacity Provider to support you in participating in the Capacity Market scheme.
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EMR Delivery Body’s Prequalification process and the latest Pre-qualification Guidance identify the key milestones and activities required to participant in Capacity Market T-1 and T-4 Auctions scheduled in February 2024.