Conditionally Prequalified Applicants are required to provide Credit Cover within 15 Working Days (WDs) after Prequalification Results Day, this is 3 December 2024. However, the Electricity Settlements Company (ESC) would encourage applicants to lodge a Letter of Credit (LoC) by 26 November 2024.
Requirements for lodging Credit Cover
When lodging Credit Cover you need to email the following details to the Service Desk via [email protected]:
- CMU ID(s)
- Linked CMUs/Clones
- 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)
- Monetary break down if lodging for multiple CMUs in one LoC or bank transfer.
Lodging Cash Credit Cover
Our bank account details are available on page 8 in WP35 – Applicant Credit Cover. Please include the CMU ID in the payment reference, where possible. 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 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 Appendix 1 and 3 of WP35 – Applicant Credit Cover.
- 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.
Next steps for EMRS
- EMRS approves or rejects your submission
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.
- Successful applicants register as Capacity Providers
If you are successful in the Auctions and you haven’t already registered with us, you will need to register using 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. To amend your registration details please do so through My EMRS.
Help and Support
EMR Delivery Body have published an updated Capacity Market Credit Cover guidance article which includes high level information on the obligations for Capacity Providers to lodge Credit Cover.
Our Capacity Provider Stakeholder Support 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.
EMR Delivery Body’s Prequalification process and the Pre-qualification Guidance identify the key milestones and activities required to participate in Capacity Market T-1 and T-4 Auctions scheduled for March 2025. For more information on Auctions, you may wish to refer to EMR DB’s dedicated webpage which includes a link to the recent Auction Readiness Webinar and the 2024/25 CM Auction Guidelines and Parameters. The dates for the Auctions are confirmed within the Capacity Market Operational Plan.
If you have any further queries please do call 020 7380 4333 or email [email protected].