The Interim Levy Rate increases to £1.016 per MWh on the 1 October 2016. As Suppliers’ CFD Credit Cover requirements are linked to the Interim Levy Rate, Suppliers need to ensure they have sufficient Credit Cover lodged by 5pm on 30 September 2016 to meet the new rate.
Please note the process for lodging a Letter of Credit has been amended. From now on, Suppliers need to request that their bank uses the SWIFT process rather than sending a physical letter to EMRS.
How much Credit Cover is required?
The minimum Credit Cover requirement is a Supplier’s metered volumes for a 21 day reference period multiplied by the Interim Levy Rate, which will be £1.016 per MWh from 1 October 2016. Credit Cover needs to be maintained on a daily basis but in order to meet the increased rate you may need to increase your lodged amounts. If this is the case then the increased amount needs to be lodged by 5pm on 30 September 2016.
What is the process for lodging Credit Cover?
WP42 – Supplier CFD Credit Cover provides details on the process for lodging including the Letter of Credit templates and approved bank details. The bank account and Letter of Credit templates are different to those used for CM Credit Cover.
You now need to request that your bank uses SWIFT rather than sending a physical letter to EMRS. The Letter of Credit template in WP42 has been updated to accommodate this so please ensure that you use the correct version.
For further information please see EMR Circular 98.