Low Carbon Contracts Company & Electricity Settlements Company
The Low Carbon Contracts Company and the Electricity Settlements Company are both private limited companies owned by the Secretary of State for Business, Energy and Industrial Strategy (BEIS) and established to play key roles in the delivery of Electricity Market Reform (EMR), the biggest change to the electricity market since privatisation
Since the start of Q1 2021, Low Carbon Contracts Company (LCCC) has been building a surplus of income over payments, caused by a combination of lower generator payments and slightly higher demand.
The former is predominantly a consequence of higher market prices at the beginning of the quarter, while the latter was driven by the low temperatures.
As a result, LCCC has decided to reduce the Interim Levy Rate (ILR) from £8.283/MWh to £6.273/MWh, effective from 18/02/2021 until the end of Q1 2021. There is no change to the Total Reserve Amount (TRA).
A Stakeholder Bulletin outlining this has been published today and is available to download via the button on this webpage.