Stakeholder Support for Supplier – Nuclear RAB

All licensed electricity Suppliers are required to register with us using My EMRS.

A new Supplier will receive a ‘Welcome Email’ from us to initiate this process. We have detailed the steps within WP21- Supplier Registration.

We have produced a short video to illustrate the process.

G25 – My EMRS User Guide and the webpage ‘About My EMRS’ contains useful FAQs to provide additional support throughout this process.

You will need to provide the following registration details within My EMRS:

• User Contact Details
• Company Details
• Settlement Information
• Primary Bank Account
• Credit Cover Return Account
• Contact Details

Once these details are completed, you will need to submit them for approval by an Authorised Contact and us. We will keep you informed via email notification of successful or unsuccessful approval and when to access My EMRS if required.

This activity registers Suppliers for all schemes operated by EMRS; this also includes Contracts for Difference and Capacity Market.

Amending Registration Details

You are able to amend your registration details at any time via My EMRS and this process is detailed in WP21- Supplier Registration.

To amend your details please select ‘View/Amend Existing Party Details’. You can then select from the menu on the left-hand side the area you wish to amend:

• User Contact Details
• Company Details
• Settlement Information
• Primary Bank Account
• Credit Cover Return Account
• Contact Details

To understand the privileges of each Authorised Contact, please see G4 – EMR and Nuclear RAB Settlement Authorisations.

Primary Authority, Finance Authority, Operating Authority and Trading Contacts can submit amendments to registrations details via My EMRS. A Finance Authority or a Primary Party Authority will review and approve any amendments made via My EMRS. The person who submitted the amendment is not able to approve.

Once approved by relevant authority, we will receive the request and confirm via email if the amendment request is ‘approved’ or ‘rejected’.

Please note amended Bank Account details will need to be verified and we will contact a relevant Authorised Contact (either a Primary Party Authority or a Finance Authority) to confirm the Bank Account details.

We create Aggregation Rules for each Supplier to ensure Suppliers are charged for their correct volume. Before metered data can be used to calculate Supplier payments, it must be aggregated by the Settlement System using the Aggregation Rules. It is important the Aggregation Rules are correct as they are used as the basis for the charges for this scheme

The type of demand used within the Aggregation Rules is Gross Demand. We first creates Suppliers’ Aggregation Rules when we are notified by the Balancing Settlement Code (BSC) that BM Units have been created for them.

We will send Suppliers a copy of their Aggregation Rules when created and any subsequent updates are made.

Changes to Aggregations Rules for Suppliers can be because of obtaining a customer with Energy Intensive Industry (EII) certificates that exempt the associated metered volumes from these charges. To find out more please read WP25 – Aggregation Rules, which details all the processes associated with Aggregation Rules.

It is the responsibility of Suppliers to lodge and maintain sufficient valid Credit Cover to meet their Credit Cover requirement on each day during the relevant Quarterly Obligation Period. This is to ensure, Low Carbon Contracts Company (LCCC) is holding sufficient Credit Cover on any day it is required.

What is the process for lodging Credit Cover?

WP42 – Supplier CfD & Nuclear RAB Credit Cover provides details on the process for lodging Credit Cover including the Letter of Credit templates (p47-60) and the approved bank account details for cash Credit Cover (p22).

In order for Credit Cover to be considered valid:

• Cash amount must be received in the relevant bank account; or
• Valid Letter of Credit received electronically.

Please note:

• The bank account details and Letter of Credit templates are different to those used for Capacity Market (CM) and Contracts for Difference (CfD) Credit Cover.
• When changes are required to existing Letter of Credit, it is advised to issue an amendment to a Letter of Credit rather than issuing a new Letter of Credit.

How is my Credit Cover requirement calculated?

As a minimum, a sufficient level is equivalent to the last 21 days of Gross Demand (excluding EII exempted electricity) multiplied by the Interim Levy Rate in force on the day for which the calculation is being performed. G5 – Supplier CfD & Nuclear RAB Credit Cover provides information on how to calculate Credit Cover, the daily Credit Cover Report, and what happens if a Supplier does not lodge sufficient Credit Cover.

What is my current Nuclear RAB Credit Cover balance?

Your Credit Cover balance is available in the latest RAB Supplier Daily Minimum Credit Cover Report data sent to your company email and available to download on My EMRS within ‘Party Data’.

Please see item ‘RAB Total Credit Cover’ (data item ‘E0239′) on the report which reflects the Total Credit Cover held (combination of cash and Letter of Credit value) as of the day.

The ‘T File CSV Format Backing Data’ document provides further details of all the other data items within the ‘RAB Supplier Daily Minimum Credit Cover Report’. You can navigate to the Publication section on our website and then select the Interface Definitions from the dropdown menu to locate this document.

Where can I find the Interim Levy Rates?

The Settlement Data webpage provides the Key Payment Figures, which provides the Interim Levy Rates for the Quarterly Obligation Periods to support the Credit Cover calculation.

All Suppliers are required to fund the Nuclear RAB scheme through the Nuclear Regulated Asset Base Model (Revenue Collection) Regulations 2023.

The two payments are:

• Operational Cost Payment – a daily charge to cover the operating costs of the Revenue Collection Counterparty (this is also Low Carbon Contracts Company) for the coming Financial Year in performing its function to administer the RAB scheme. The Operational Costs are recovered via the Operational Costs Levy Rate, which is a pound per megawatt hour (£/MWh) amount charged to Suppliers based on daily Gross Demand. This payment will be charged two Working Days after the receipt of Initial Volume Allocation Run (SF) data.
• Interim Rate Payment – this covers the expected payments required to the Revenue Collection Counterparty (RCC) in a quarter. This is recovered via the Interim Rate Levy which is a pound per megawatt (£/MWh) amount charged to Suppliers based on daily Gross Demand. The financial quarters are referred to as Quarterly Obligation Periods. The invoice for the Interim Rate Payment is generated two Working Days (WD) after the relevant Balancing and Settlement Code Company (BSCCo) Settlement Run (seven WD for II, 18 WD for SF, and 36 to 40 WD for R1), to allow for data collection and calculations to be performed.

The Nuclear Regulated Asset Base Model (Revenue Collection) Regulations 2023, confirm the Operational Cost Payment will be £0.0028/MWh for any day after 31 March 2024.

Both these charges will be shown as a line on the Daily Supplier Invoice, which must be paid within five WD. The invoices and backing data to support these payments are issued to the Primary Company email addresses and available on My EMRS to download.

G2 – Calculation of Supplier Demand provides Suppliers with information about the data and the calculations used for charging for the schemes. There is also information on:

• Approach of how sites are treated for Nuclear RAB charging; and
• How the Transmission Loss Multiplier is applied in the charging methodologies.

G16 – Supplier CfD & RAB Payments give Suppliers information on what the payments are, how they are calculated and when to expect the associated invoices or credit notes.

Key Figures for Payments sets out the main rates and amounts used in the calculation to support determining the payments under the CfD, CM and Nuclear RAB schemes.

EMRS Settlement Calendar provides a schedule of when payments will be invoiced, when payment is due, and if applicable, the Settlement Date and the Settlement Run.

Reserve payments are made by Suppliers. The Reserve payments cover the risk to ensure the Revenue Collection Counterparty (RCC) is able to make all the payments required to RCC Parties during the Quarterly Obligation Period. Reserve payments help manage any unpredictability, volatility and cash flow timing mismatches that may arise.

We will apportion the Total Reserve Amount amongst Suppliers according to each Supplier’s market share. A Supplier’s market share is calculated using the metered data provided by the Balancing and Settlement Code Company (BSCCo). The calculation uses a ‘Reference Period’ of 30 calendar days for which there is metered data (excluding Interim Information data) prior to the date on which the Total Reserve Amount is determined by LCCC, as the RCC.

The activities required for the Total Reserve Amount and the Supplier’s Reserve Payment are as follows:

• No later than 30 calendar days prior to a Quarterly Obligation Period, LCCC determine the Total Reserve Amount.
• No later than eight working days from the determination of the Total Reserve Amount for a relevant Quarterly Obligation Period, Suppliers receive a notice to inform them of their share of the Total Reserve Amount.
• The Quarterly Reconciliation invoice also acts as the invoice for the Supplier’s Reserve Payment. These are  issued on the eighth working day of the relevant Quarterly Obligation Period and cover any reconciliation payments due back to Suppliers.
• Payment is due five working days from the invoice date.

The diagram below supports illustrating the timeline mentioned above:

G3 – CfD and Nuclear RAB Reserve Payment will give Suppliers information on how these Reserve Payments are calculated and reconciled.

The Interim Rate Payment and the Reserve Payments are reconciled at the end of a quarter and by this time, more accurate metered data is available.

To calculate what a Supplier should have actually paid over the quarter (their RAB Period Contribution), we aggregate the RAB Daily Contribution and the RAB Quarterly Contribution. To calculate the RAB Daily Contribution for each Supplier we multiply the payments to the RCC by their Supplier’s daily market share. Market share is based on the Supplier’s daily-metered volumes and this is done for each day within a quarter.

Once the RAB Period Contribution is calculated, we compare the RAB Period Contribution (what a Supplier should have paid), to the payments made under the Interim Rate Levy (what a Supplier did pay). The difference between the two is then compared against the Quarterly Reserve Payment to give the Supplier’s reconciliation payment.

Reconciliation payments for previous Quarterly Obligation Periods are taken into account if more accurate metered data is available. The reconciliation payment is then compared to the most recently notified Reserve Payment.

The Quarterly Reconciliation invoice (or credit note) and the supporting backing data is issued to the Primary Company email addresses and available on My EMRS to download.

Further information is available in the following documents:

G3 – CfD and Nuclear RAB Reserve Payment Guidance will give Suppliers further information on how Reserve Payments are calculated and reconciled.

G16 – Supplier CFD & RAB Payments will give Suppliers information on what the Nuclear RAB payments are for, how they are calculated and when to expect the associated invoices or credit notes.

EMRS Settlement Calendar provides a schedule of when payments for Suppliers will be invoiced, when payment is due, and if applicable, the Settlement Date and the Settlement Run.

Operational Costs are forecasted in advance; once the actual costs for running the Nuclear RAB scheme are determined for a Financial Year, the difference will be split between Suppliers dependent on market share. We will notify Suppliers on LCCC’s behalf if a refund is due to occur.

The Operational Cost Refund is issued to the Primary Company email addresses and available on My EMRS to download.

G16 – Supplier CfD & RAB Payments provides information on what the Nuclear RAB payments are for, how they are calculated and when to expect the associated invoices or credit notes.