The Low Carbon Contracts Company (LCCC) and Electricity Settlements Company (ESC) are independent organisations, benefitting from a team of highly experienced and skilled employees. Both companies have been established to deliver vital elements of the EMR regime, through their respective roles in the CFD and Capacity Market schemes. These are key cornerstones within the Government’s EMR programme, which has been designed to provide incentives for the investment in the UK’s energy infrastructure that is required to deliver secure, sustainable and affordable electricity for the future.
The companies’ mission is to build confidence in electricity market reform through effective commercial delivery and continuous improvement. This reflects the Guiding Principles set out in their respective Framework Documents which, for LCCC, is to maintain investor confidence in the CFD scheme and minimise costs to consumers and, for ESC, is to maintain market participants’ confidence in the Capacity Market settlement process and minimise costs to consumers.
Both organisations are private companies with operational independence, but due to their sole shareholder being the Department of Business, Energy & Industrial Strategy (BEIS), are also categorised as governmental arm’s length bodies. They are led by independent (identical) Boards on which the government is represented and their constitutional documents form part of their governance structure.
Both companies adhere to the highest standards of corporate governance. Further details can be found under our Corporate Information section here.