On 31 March 2022, Suppliers received their revised monthly Capacity Market Credit Cover and Supplier Charge schedule for the 2020/21 Delivery Year. The revised schedule is based on the actual data for the Period of High Demand.
The schedule included following information:
- A Supplier’s revised Credit Cover requirements for May 2022 to September 2022
- Monthly deadlines for provision of Credit Cover
- A Supplier’s revised monthly Supplier Charges for May 2022 to September 2022.
The revised schedule illustrates the Credit Cover requirements and Supplier Charges for October 2021 to April 2022 based on actual demand data.
Who does this impact?
This impacts Suppliers who had metered volumes during Period of High Demand in 2021/22 Delivery Year and Suppliers who submitted a demand forecast but subsequently had zero volumes during the Period of High Demand in 2021/22.
What are the key dates I need to be aware of?
| Activity | Date |
| Suppliers’ first deadline to lodge Credit Cover based on revised requirements for May 2022 | 5pm on 12 April 2022 |
| Suppliers to be invoiced for May’s Supplier Charge based on actual metered volumes. | 3 May 2022 |
| Suppliers to pay the invoice for May’s Supplier Charge | 10 May 2022 |
How are my Credit Cover requirements and Supplier Charges calculated?
Suppliers are obligated to pay a monthly Supplier Charge to cover the costs of Capacity Provider payments for a Delivery Year. The total Supplier Charges for a Delivery Year are equal to the total cost of Capacity Provider payments for a Delivery Year. This charge is apportioned across Suppliers by their share of the total Gross Demand for the Period of High Demand within a Delivery Year.
The monthly weighting factors for 2021/22 Delivery Year can be found in the Key Figures for Payments 2021/22 on the Supplier Settlement Data webpage on the EMRS website. Suppliers submitted a demand forecast to EMRS in June 2021. These forecasts were used to calculate the provisional Supplier Charge and Credit Cover requirements for the Delivery Year.
A Supplier’s minimum Credit Cover requirement in respect of a month is 110% of their monthly Supplier Charge.
The revised schedule of Monthly Credit Cover requirements and Supplier Charges reflect the calculation now based on the actual data for the Period of High Demand.
When does my Credit Cover need to be in place?
Suppliers are required to lodge Credit Cover by no later than 12 Working Days before the start of a month within a Delivery Year. The revised schedule starts from May 2022 and Credit Cover for that month needs to be lodged by 5pm on 12 April 2022.
Credit Cover can be accepted as either cash or Letter of Credit or a combination of the two. Please note, in order for Credit Cover to be considered to be lodged, the cash amount must have been received in the relevant bank account or a valid Letter of Credit must have been received by EMRS. When lodging a Letter of Credit by SWIFT message please email a copy of the message to [email protected].
What documents should I look at for further information?
WP45 – Supplier CM Credit Cover details the process for lodging Credit Cover including the Letter of Credit templates and bank details. G14 – Supplier CM Credit Cover provides further guidance on CM Credit Cover. Should you wish to make changes to the wording of the Letter of Credit then these changes should be authorised by EMRS before submitting to our bankers. Unauthorised changes will be rejected.
G15 – CM Supplier Payments provides further information on how Supplier Charges are calculated.