Lenders and capacity providers in the UK's Capacity Market
will want to take note of new procedures introduced by National
Grid in its role as the Capacity Market's Delivery Body.
The Capacity Market aims to incentivise investment in new
electricity generating capacity and ensure reliable electricity
supplies for end users. Where a Capacity Provider has third party
debt financing, the lender will want to take security over the
capacity payments it is entitled to receive by registering a
Security Interest in respect of the relevant Capacity Agreement on
the Capacity Market Register.
Recently National Grid, as Delivery Body, has changed the way
such Security Interests are to be registered.
Previously lawyers acting for lenders (the beneficiaries of the
Security Interests) have undertaken registration on behalf of their
clients, in line with the other common security registrations at
Companies House and where applicable, the Land Registry. All that
was required was to submit by email a notice of the Security
Interest in a form agreed by the Delivery Body (the
Security Interest Notice). The Delivery Body
now requires that Security Interest Notices are registered by the
relevant Capacity Provider itself, via the online portal
registration system known as the EMR Delivery Body Portal (the
This means that beneficiaries of the Security Interests, or
lawyers acting on their behalf, are no longer able to manage this
process, so the Security Interest Notice will need to be submitted
to the Capacity Market Register via the Portal by the Capacity
Provider or their lawyers (if they are appointed as an agent to act
on behalf of the relevant Capacity Provider).
Once a Security Interest Notice has been uploaded to the Portal
the Delivery Body will receive notification and following this the
Delivery Body will be required to approve (or return) an
application to register that Security Interest and update the
Capacity Market Register accordingly.
Going forward, it is likely that this process will be reflected
in any relevant loan or security document to ensure that, where
applicable, borrowers and developers are required to submit a
Security Interest Notice to the Delivery Body (or provide evidence
of this to the beneficiaries of the Security Interest) as a
condition to the terms of the financing.
If you are a Capacity Provider and you have not already signed
up to the Portal, information on how to register via the company
registration form can be found here. The Delivery Body has also published
guidance on how to upload a Security Interest which you can access
by clicking here.
If you are experiencing any issues with the Portal, the Delivery
Body can be contacted via email at EMR@nationalgrid.com or via telephone on 01926
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