Press Releases / Announcements

Oct 15, 2015Archived

The Government, Ofgem and National Grid have today (15 October 2015) published a number of documents that may be of interest.

These cover security of electricity supply, the Capacity Market and the Electricity Market Reform (EMR). More detail can be found on their website.

Oct 15, 2015Archived

Today (15 October 2015) DECC have opened a consultation on a number of proposed reforms to the electricity Capacity Market.

The most significant of these relate to new-build generating plants which could win agreements in the CM auction, and ensuring they face the right incentives and penalties to deliver fully and according to their agreements.  You can view the consultation document and illustrative drafting here. They invite stakeholders to respond to this consultation by 5pm on 10 December using their ‘e-consultation’ tool.

Sep 30, 2015Archived

We can confirm the Interim Levy Rate for the Fourth Quarterly Obligation Period, to run from 1 January 2016 to 31 March 2016.

The Interim Levy Rate for the Fourth Quarterly Obligation Period, to run from 1 January 2016 to 31 March 2016, will be set at £0.348/MWh and the Total Reserve Amount at £8,861,112,35.

  In arriving at its decision on the Interim Levy Rate and Total Reserve Amount, LCCC has considered the potential amount of CFD payments likely to be required to be made to CFD Generators under the existing CFDs and Investment Contracts (including the two Investment Contracts currently subject to and awaiting state aid approval).   LCCC notes the uncertainty relating to the timing of the state aid approval.

 

Sep 17, 2015Archived

The Department of Energy and Climate Change have published a consultation which makes proposals to the Contract for Difference Supplier Obligation. Information can be found here

Aug 13, 2015Archived

An independent study has commended the Low Carbon Contracts Company for the key part it has played in the first operational year.

For the full report please see here

LCCC, which celebrated its first birthday on 1 August, is the independent counterparty to CFDs and has been lauded by industry for the way it has supported developers of renewable energy and electricity suppliers involved in the scheme. The scheme is part of the Government’s wider Electricity Market Reform (EMR) programme designed to attract £100bn of investment into low carbon generation this decade alone.

LCCC Chief Executive, Neil McDermott, welcomed the early findings of the report saying: "We welcome feedback from our stakeholders at any time of the process but I’m pleased that the results show we haven’t just done what we were set up to do – but we’ve done it well.

"Our role within EMR, however, is clear. We are the designated counterparty to CFDs and we are managing CFDs relating to projects that are planning to deliver over 5.5GW additional low carbon capacity by 2020 - which is equivalent to almost 7% of current total installed electricity capacity in the UK."

He added: "Our targeted and proactive engagement with industry was pivotal in the contract signing process and in ensuring we got all 27 CFD contracts signed on 25 March and our dedicated Contract Managers continue to work with those projects through each key milestone in the CFD process towards the delivery of new low carbon generation."

The report was conducted by agency Bell Pottinger earlier this year to gain insight from industry into LCCC’s first year of CFD implementation. Stakeholders in the report defined LCCC’s role as critical in the process. The report follows the recent publication of the LCCC’s Annual Report which was published on Monday 3 August.

CFD Implementation

A main area of recommendation from industry was in the way LCCC conducted its CFD implementation events with industry. In particular LCCC’s Contract Management team were seen as "very effective in providing information (to stakeholders) with one adding "the seminars have been extremely thorough and necessary. Overall…brilliantly well done."

Development Opportunities

A number of trade bodies also suggested that LCCC could take on a broader role in the end to end cycle of the CFD process in order to help organisations through the logistical elements of CFD delivery.

Members of the investor community that were interviewed felt LCCC should provide a facility to bring transparency to the market "due to its apolitical, stable position and by hosting investor related events."

Consumer Engagement

It was also noted that there room for improvement in the engagement of consumers on EMR and that LCCC could step into this space by supporting the provision of helpful information.

The study was conducted at an early stage in the CFD process at a time when the first CFD signatories had been announced and the report also recommends further studies be done as EMR progresses adding "LCCC has succeeded in providing a good level of education and support to priority stakeholders, providing a strong platform for future engagement."

Ends

Notes to Editor:

1. To view a copy of the Perception Study please visit

www.lowcarboncontracts.uk. To view a copy of the Annual Report and Accounts for both LCCC and ESC please click here.

2. The Low Carbon Contracts Company and Electricity Settlements Company were launched in August 2014 to implement and deliver key elements of the Electricity Market Reform (EMR) programme. The companies play a pivotal role in attracting a proportion of the £100 billion investment needed this decade to replace ageing energy infrastructure with a more diverse and low-carbon energy mix.

3. The Low Carbon Contracts Company currently manages 27 CFDs across 25 projects. It also manages 12 Investment Contracts, early forms of CFDs, across six projects. Details of all the contracts the company manages can be viewed at

www.lowcarboncontracts.uk

4. For more information on this release please contact the Communications Team on 0207 211 8357 or email

info@lowcarboncontracts.uk

Aug 06, 2015Archived

The Low Carbon Contracts Company and Electricity Settlements Company have today launched their Annual Reports.

These can be found in the Publications section of our new website.

Jun 30, 2015Archived

Interim Levy Rate and Total Reserve Amount set to zero for Third Quarter Levy Period

In March 2015 LCCC announced its determination of the Interim Levy Rate (IR) and Total Reserve Amount (TRA) for the quarter running from 1 July 2015 to 30 September 2015. Both rates were set to zero for Suppliers based upon information which indicated that there would be no CFD payments due in respect of that period.

We can now confirm that both these rates for the Third Quarter Levy Period, to run from 1 October 2015 to 31 December 2015 inclusive, will also be set to zero. In arriving at its decision on the Interim Levy Rate and Total Reserve Amount, LCCC has considered the likelihood of any CFD payments needing to be made to any of the CFD Generators from either the first allocation round or for any of the Investment Contracts.

May 20, 2015Archived

The Low Carbon Contracts Company (LCCC) can confirm that Dudgeon Offshore Wind Limited successfully has passed a significant contractual milestone. The milestone requires substantial commitment to investment in the project and is a necessary requirement to ensure it can deliver low carbon electricity for the UK.

For a copy of the release, please see here

May 15, 2015Archived

Low Carbon Contracts Company congratulates DONG Energy on reaching a key milestone. Please see the DONG Energy release: Burbo Bank Extension Offshore Wind Farm on track as it meets key milestone

Apr 29, 2015Archived

The Electricity Settlements Company is required to publish a register of non-payments in relation to the The Electricity Capacity Regulations 2014. This register sets out the names of and details relating to suppliers and capacity providers who have not paid an invoice under these regulations by 5:00 pm on the payment due date. For more information please read our FAQ.