Since the start of Q1 2021, Low Carbon Contracts Company (LCCC) has been building a surplus of income over payments, caused by a combination of lower generator payments and slightly higher demand.
The former is predominantly a consequence of higher market prices at the beginning of the quarter, while the latter was driven by the low temperatures.
As a result, LCCC has decided to reduce the Interim Levy Rate (ILR) from £8.283/MWh to £6.273/MWh, effective from 18/02/2021 until the end of Q1 2021. There is no change to the Total Reserve Amount (TRA).
A Stakeholder Bulletin outlining this has been published today and is available to download via the button on this webpage.