The Low Carbon Contracts Company exists to mobilise private sector investment in secure, low carbon energy.
In doing this, we help Britain overcome fundamental barriers to achieving its Net Zero obligations and make decarbonisation affordable for the future.
The Low Carbon Contracts Company (LCCC) and the Electricity Settlements Company (ESC) are private limited companies, wholly owned by the Secretary of State for Business, Energy and Industrial Strategy (BEIS). They were created to deliver key elements of the Government’s Electricity Market Reform (EMR) Programme. As government-owned companies, LCCC and ESC are governed by Framework Documents setting out the shareholder relationship and their Guiding Principle.
LCCC manages Contracts for Difference (CfD) with low carbon electricity generators under the CfD scheme. This also involves managing the Supplier Obligation Levy that funds CfD payments, which we forecast using sophisticated models.
In addition, we carry out the obligations of the Capacity Market Settlement Body to manage Capacity Market payments on behalf of our sister company, Electricity Settlements Company (ESC). This includes holding credit cover for Capacity Auction participants and conducting meter assurance.
The LCCC and ESC Board is collectively responsible for:
- the long term success of the company
- its strategy, management, direction and performance
- setting the company’s strategic aims, ensures that the necessary financial and human resources are in place for the company to meet its objectives,
- review progress towards the achievement of objectives and reviews the performance of management.
- the board establishes the values, culture, ethics and standards of the company and sets the framework for prudent and effective controls which enables risk to be assessed and managed.
Senior Leadership Team
The LCCC and ESC Senior Leadership team provides:
- assured delivery of CfD management and Capacity Market settlement responsibilities
- strong independent governance
- commercial skills and industry knowledge
- a close working relationship with Government, focussed on adding value