Response on proposed approach to calculating supplier demand for EMR charging

We have provided an update (via EMRC25) for licensed electricity suppliers on our consultation on the proposed approach for calculating the supplier demand for EMR charging. The consultation was issued on Thursday 16 October 2014 and communicated via EMRC20.

The response confirms the approach to be taken to calculate the supplier demand for Contracts for Difference (CFD) charging. For Capacity Market (CM) we are still working on resolving some of the issues that were raised by the consultation. We’ll confirm once these issues have been resolved (at which point we will also publish a more detailed response).

Who does this impact?

This will be of interest to all licensed electricity suppliers, as it confirms which BM Units will be used to calculate a supplier’s demand for CFD charging. This begins with the calculation of reserve payments for the April-June 2015 obligation period, which we are required to carry out before 1 January 2015.