UPDATED: The BSC Credit Assessment Price is set to rise to £415/MWh unless there is significant change in market direction over the next two weeks.
The BSC’s Credit committee met on 16 August to post a rise to £390/MWh (as below) after a consultation.
However, the group said, “Considering the consultation response and the latest market updates, some Credit Committee members also did not think the consulted on CAP was in line with the latest market developments. The forward market prices have increased significantly since the consultation was issued. Therefore, the Credit Committee held an urgent meeting today and proposed a CAP of £415/MWh for implementation from 31 August.”

A further reassessment on 18 August could see the CAP lifted again on 7 September to £435/MWh

The Balancing and Settlement Code’s (BSC’s) Credit Committee is proposing to increase the Credit Assessment Price (CAP) again as forward prices rise. A CAP of £330/MWh takes effect on 17 August and the committee now proposes to raise it again on a week later to a new record high of £390/MWh.
When the CAP rises it may affect the amount of credit cover that suppliers and generators have to lodge. For some BSC Parties this may mean additional collateral is required.
Proposing the increase for consultation, the Committee said there were indications are that August and September prices are converging. It said, “ There has been more volatility in forward market prices over the past few weeks particularly during the recent days.”