Process for Applicants to lodge Credit CoverPosted on:
On Friday 23 September 2016, Applicants will receive a notice from EMR Delivery Body that will confirm if their Capacity Market Unit(s) (CMU) are conditionally prequalified and if Credit Cover is required to be lodged. This circular highlights the process for Applicants to lodge Credit Cover with Electricity Settlements Company. EMRS are managing this on their behalf.
Please note the process for lodging a Letter of Credit has been amended. From now on, Applicants need to request that their bank uses the SWIFT process rather than sending a physical letter to EMRS.
What is the process for lodging Credit Cover?
The bank account details and the approved Letter of Credit template can all be found in Working Practice 35 – CM Applicant/ Capacity Provider Credit Cover Process.
To submit a Letter of Credit, you now need to request that your bank uses SWIFT. The Letter of Credit template has been updated to accommodate this so please ensure that you use the correct version.
As part of lodging Credit Cover you should also:
- Notify us once Credit Cover has been provided, including the amount, format (cash or Letter of Credit) and CMUs to which it applies to firstname.lastname@example.org
- If lodging as a cash amount please include your CMU ID in the payment reference
EMRS will validate the received Credit Cover against the value given in the Notice of Prequalification success that you will receive from EMR Delivery Body. Once this is complete, we will send you either a Notice of Approved Credit Cover or a Notice of Unapproved Credit Cover. A copy of the Notice of Approved Credit Cover will also be sent to EMR Delivery Body. You do not need to send a copy to EMR Delivery Body.
If you already have a Letter of Credit lodged and it covers your pre-qualification requirement then you do not need to take any action. If you need to amend or replace your Letter of Credit then you will need to use the new template and process.
For further information, please see EMRC97.