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What is the Low Carbon Contracts Company?

Low Carbon Contracts Company Ltd (LCCC) is a private limited company, wholly owned by the Secretary of state for Energy and Climate Change, and designated under The Contracts for Difference (Counterparty Designation) Order 2014 as the counterparty to Contracts for Difference (CFDs) and Investment Contracts. LCCC has an independent board of directors.  LCCC commenced operations on 1 August 2014 and its primary functions are to be the counterparty to and manage CFDs and Investment Contracts, to administer and manage the operational and supplier obligation levy arrangements for CFD difference payments and to be responsible for CFD settlement activity.

What are the key activities LCCC is responsible for?

As the designated counterparty to CFDs, LCCC is responsible for entering into and managing CFDs throughout their term. LCCC is also responsible for forecasting CFD payments to generators and setting the supplier obligation levy that funds them. LCCC is responsible for the settlement of amounts payable by and to generators and suppliers and outsources this work to EMR Settlement Ltd. LCCC also engages with delivery partners in particular in relation to forthcoming CFD allocation rounds. LCCC also manages the administration and operation process for the Electricity Settlements Company Ltd (ESC).

How many contracts does LCCC manage?

Please visit our CFD Register for full details of all the CFDs and Investment Contracts we manage.  The CFD Register is regularly updated and contains high level information such as party names, technology type, strike price and capacity.

How is LCCC ensuring value for money for electricity consumers?

LCCC’s guiding principle as a company is to maintain investor confidence in the CFD scheme and minimise costs to consumers. In managing CFDs, we proactively and efficiently manage generator contracts and supplier payment processes to minimise costs to consumers.

How is LCCC managed and governed?

LCCC is led by its Chief Executive Neil McDermott and is governed by an independent board which is chaired by Dr Martin Read. LCCC is also governed by a Framework Document which sets out LCCC’s relationship with its sole shareholder, the Secretary of State for Business, Energy & Industrial Strategy, and LCCC’s company guiding principle.