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

29th March, 2021

LCCC determines Interim Levy Rate and Total Reserve Amount for Q3 2021 and adjusts rates for Q2 2021

Low Carbon Contracts Company (LCCC) has determined the Interim Levy Rate (ILR) and Total Reserve Amount (TRA) for the Quarterly Obligation Period 1 July 2021 to 30 September 2021.

The amounts are:

  • ILR = £8.608/MWh
  • TRA = £103,253,186.38

In making this determination, LCCC has assumed the period in question will not be subject to any prolonged period of national lockdown and that reductions in demand due to Covid-19 will be 2% compared with the demand we would otherwise have expected.

LCCC has also decided to reduce the Interim Levy Rate (ILR) and Total Reserve Amount (TRA) for the Quarterly Obligation Period 1 April 2021 to 30 June 2021. The adjusted amounts are:

  • ILR = £9.954/MWh
  • TRA = £94,244,590.77

This is due to a surplus of income over payments collected since the start of Q1 2021, caused by a combination of lower-than-expected generator payments and higher power prices. In making this determination, LCCC has assumed the period in question will not be subject to any prolonged period of national lockdown and that reductions in demand due to Covid-19 will be 3% compared with the demand we would otherwise have expected. The ILR for this period (1 April 2021 to 30 June 2021) includes the repayment of the BEIS loan used for covering part of the shortfall incurred in Q2 2020 due to the Covid-19 pandemic.

For further detail on LCCC’s calculations, please refer to  our online CfD Levy Dashboards.

A Stakeholder Bulletin outlining this has been published today and is available to download via the button on this webpage.

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