Stakeholder Support for Capacity Providers
This interactive process map will provide details on the activities and interactions you will have with EMRS as a Capacity Provider to support you in participating in the CM scheme for EMR. When you click on each stage this will provide you with the requirements applicable for your role, tasks to be completed and relevant supporting information.
Applicants are required to lodge Credit Cover if they receive a notice from the Delivery Body confirming pre-qualification of their Capacity Market Unit(s) is conditional on providing Credit Cover.
Do I need to register with EMRS?
You do not have to register to successfully lodge Credit Cover. Instead, once you have lodged, contact the Service Desk stating the below:
- CMU ID(s)
- Format (cash or Letter of Credit)
- Date it will be received in bank (if cash)
- Letter of Credit (LoC) ID (if LoC)
- A copy of the SWIFT message sent to ESC’s bankers (if LoC)
If lodging for multiple CMU’s in one LoC or bank transfer, please confirm the monetary break down.
What form of Credit Cover can be accepted?
The Credit Cover can be lodged in the form of cash, Letter of Credit (LoC) or a combination of both. The bank details and latest LoC template can be found in WP35- CM Applicant /Capacity Provider Credit Cover Process.
How long does a Letter of Credit need to be valid for?
LoC should be valid for a minimum of 6 months from date of issue. If Credit Cover is required past the expiry date we will contact you requesting that you extend your Letter of Credit but please note it is the Applicant/Capacity Providers responsibility to ensure valid Credit Cover is lodged.
Return of Credit Cover
Return of Credit Cover can be requested once Delivery Body has confirmed the Credit Cover value of the CMU has decreased. EMRS are only able to process the Credit Cover return once Delivery Body has communicated the decrease of Credit Cover value for the CMU to us.
If you have queries regarding the Credit Cover requirement please contact Delivery Body.
How do I request the return of my Credit Cover and how long does it take?
The Credit Cover return process can be different depending on whether the Applicant has registered with EMRS (being granted an EMR Party ID) or not.
If you have previously registered with EMRS, you need to contact the Service Desk with below information:
- CMU ID(s)
- Amount (monetary break down for multiple CMUs)
- Format (cash or LoC)
- Bank details (if cash) – this must match the bank details we have on recorded for you
- LoC ID (if LoC)
This request must come from a Primary Party Authority, Finance Authority or Credit Contact. To understand the privileges of each authority, please see G4 – EMR Settlement Authorisations.
If you haven’t registered with EMRS previously and wish to request the return of Credit Cover please contact the Service Desk:
- If Credit Cover is lodged in Cash, please request and complete a Cash Credit Cover Return form.
- If Credit Cover is lodged by LoC, please email your request to confirm the CMU ID, Amount, auction and LoC ID.
- Please note that requests should be sent by the Delivery Body main contact.
Please do not ask your bank to amend or cancel a LoC before you have received authorisation from EMRS as these will be rejected.
Further information of Credit Cover return process can be found on WP35- CM Applicant /Capacity Provider Credit Cover Process.
The registration is required to be completed prior to the Delivery Year that your agreement was awarded to enable the Capacity Payment to be made to you. Failure to complete the registration form may result in Capacity Payments not being made on time.
The registration form asks for below information:
- Company details
- Bank account details (as part of our anti-fraud process, we will confirm the bank details via phone to the authority other than the person submitting the form)
- Contact details (each EMR Party must have one Primary Party Authority and at least two Finance Authorities)
Once authorised contacts are registered, they will also receive access to the EMR Portal.
Please note, that EMRS requires both a signed (by authorised contact) PDF version and the Excel version to be sent back to us. Upon receipt of your forms, EMRS will validate and confirm the unique EMR Party ID with you. For further information regarding the privileges for each authority, please see G4 – EMR Settlement Authorisations.
How do I amend the registered details?
If a Capacity Provider wish to amend any of the details EMRS holds, please return a completed WP31/1-EMR Party Details Amendment Form to the Service Desk. Please note that EMRS require both a signed (by authorised contact) PDF version and the Excel version of the form to be sent back. We also require an authorised contact to be copied into the request email before any changes can be updated. For further information, please refer to WP31 – Amending EMR Party Details.
If, after completing the Delivery Body Metering Assessment process, a Metering Test is required for a Component within a CMU, a Capacity Provider needs to contact Service Desk to request one.
A Metering Statement, as per Schedule 6 of the Capacity Market (Amendment) Rules 2015, needs to be submitted for each Component that triggered a Metering Test. This must provide details of all Components making up the CMU.
All Metering Test and Metering Statement requests as well as any required metering information needs to be submitted to Service Desk before the deadline of each Delivery Year.
EMR Aggregation Rules
Aggregation Rules are created for Capacity Providers to allow Metered Volumes to be calculated per CMU, for use in the EMR Settlement System. The rule is based on CMU components which are made up of an Approved Metering Configuration Solution. Each CMU is made up of one or more CMU components, which can be made up of one or more Metered Entities. The output of the EMR Aggregation Rule will be used to determine whether a CMU has met their Capacity Obligation.
WP25 – EMR Aggregation Rules provides further details and in Appendix 5 illustrates how a Capacity Provider CMU Aggregation Rules provides details on how the aggregation rule is developed.
Delivery Year Starts
Prior to the start of a Delivery Year we’d like to inform Capacity Providers of the following:
- Amending registration details with EMRS
- Submission of Metered Volumes
- Volume Reallocation
- Receiving Capacity Provider Payments
These are areas that the EMR Delivery Body (DB) would like to highlight:
- Secondary Trading with Delivery Body
- Register for Volume Reallocation with the Delivery Body
- Completing Satisfactory Performance Days (SPD) with Delivery Body
- Stress Event – Capacity Market Warnings
For the start of the 2017-18 Delivery Year we issued EMRC135 which highlights the above areas.
Submit Metered Volumes
We encouraged Capacity Providers to submit metered volumes to EMRS on a daily or weekly basis. Capacity Providers can submit metered volumes via a number of sources:
- Balancing and Settlement Code Company (BSCCo) Balancing Mechanism Units (BMU)
- Half Hourly Data Aggregators (HHDA)
– Capacity Provider must contact the Supplier to establish the data flows.
- Self-submission by the Capacity Provider or their appointed Data Collector (DC)
– Uses a defined CSV format to uploaded data into the EMR Settlement System via Secure File Transfer Protocol (SFTP) account with EMRS. Contact Service Desk to setup an SFTP account
BMU and HHDA data is submitted in accordance with the BSC Settlement Calendar and this calendar is available on the ELEXON Portal. For more information, please see WP195 – Capacity Market and CFD Metered Data.
Monthly Capacity Payment
EMRS manages Capacity Provider payments on behalf of Electricity Settlements Company (ESC). Capacity Providers will be issued with a Credit Note on the 28th Working Day following the end of the relevant Delivery Month. The credit notes and associated settlement files will be emailed to the company email addresses (the EMRS Portal is an additional channel for assessing settlement files) and payments are made to the bank account details as specified on the registration form validated by EMRS.
G17-Capacity Provider Payments provides further details about these payments.
Key Figures for Payments confirms the Monthly Weighting Factor.
EMRS Settlement Calendar provides a schedule of when payments for Capacity Providers will be invoiced, when payment is due, and if applicable, the Settlement Date and the Settlement Run.
A System Stress Event is defined in the Capacity Market Rules and is where the System Operator has instructed (involuntary) load reduction to maintain the security of the transmission system in the event of a shortage of generation to meet demand.
If a System Stress Event occurs after a Capacity Market Warning, Capacity Providers will be required to deliver their Adjusted Load Following Capacity Obligation (ALFCO).
Capacity Market Warnings
Are you registered to receive Capacity Market Notices? If you aren’t please register to receive GB Electricity Capacity Market Notices. The website will display all electricity Capacity Market Notices issued by National Grid. The site also provides frequently answered questions.
After a System Stress Event has occurred, Capacity Providers may use Volume Reallocation if they have under or over-delivered compared to their Capacity Obligation. The process involves each participating CMUs to submit Capacity Market Volume Reallocation Notification (CMVRN) to EMRS who validate the CMVRN and volume reallocate.
WP48 – Volume Reallocation details the process and timescales associated to this process.
The Capacity Volume Register will be published on the Settlement Data page from 10th to 19th Working Day inclusive after the end of the month in which a System Stress Event occurs.
Penalty and Over Delivery Payments
Capacity Provider Penalty
These are financial penalties imposed on Capacity Providers who fail to meet their Capacity Obligations during a System Stress Event. Penalties are related to a Capacity Provider’s Capacity Payments and are capped at 100% of a Capacity Provider’s annual Capacity Payment with respect to a Capacity Market Unit (CMU), and at 200% of the CMU’s Capacity Payment for any individual month.
Over Delivery Payments
This is a payment made to a Capacity Provider that has delivered more than its Capacity Obligation during a System Stress Event. This payment is funded by the Penalties collected. Therefore the payment is calculated and made at the end of the Delivery Year once all Penalties have been received.
G17-Capacity Provider Payments provides further details about these payments.