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
LCCC will raise an additional Total Reserve Amount (TRA) for Q2 2022. No adjustment has been made to the Interim Levy Rate (ILR).
LCCC has decided to increase the TRA for the period from 14 June 2022 to 30 June 2022.
- Additional TRA = £50,000,000.00
Due to the extraordinary market circumstances arising from the Russian invasion of Ukraine, LCCC has set the additional TRA to a level based on the analysis of different scenarios that may develop.
In making this determination, LCCC notes the high volatility of power market prices, including the recent sharp market price drop, and considers that there is a risk that the original TRA will be insufficient to cover the quarter’s CfD costs.
Market prices for this calculation were taken as closing mid-prices on the 9th of May 2022.
- Notices will be issued confirming the additional TRA to active suppliers in Q2.
- Invoices will be issued on 7th June 2022 and will detail the suppliers’ share of the additional TRA.
- The payment date for the additional TRA is the 14th of June 2022.