Reminder: Suppliers required to lodge CFD Credit Cover by 5pm on 30 June 2016Posted on:
Suppliers are reminded that under the Contracts for Difference (Electricity Supplier Obligations) Regulations 2014 as amended, they need to lodge Credit Cover by the 30 June 2016 for the Quarterly Obligation Period 1 July 2016 to 31 September 2016.
How much CFD 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. The Interim Levy Rate for this Quarterly Obligation Period is £0.005 per MWh (for further information, please see EMR Circular 78). The 21 day reference period for the first day that Credit Cover is required to be lodged for is 2 June 2016 to 22 June 2016.
What types of CFD Credit Cover can be used?
Credit Cover can be lodged as cash, Letter of Credit or combination of both. We’d like to recommend the following when lodging Credit Cover:
- Once Credit Cover has been provided (either cash or Letter of Credit) please notify us this has been actioned including the amount and format to [email protected]
- If lodging as a cash amount please include your EMR Party ID in the reference
- If issuing a Letter of Credit it should be sent via a secure courier to our (EMRS) offices
The bank account details can be found on page 6 of WP42 – Supplier CFD Credit Cover and the approved Letter of Credit template can all be found in Appendix 1.
For more information on CFD Credit Cover or CM Supplier Credit Cover, please see EMR Circular 86.