LCCC raises additional TRA for Q4 2022

Low Carbon Contracts Company (LCCC) will raise an additional Total Reserve Amount (TRA) for Q4 2022. No adjustment has been made to the Interim Levy Rate (ILR).

LCCC has decided to increase the TRA for the period from 28 November 2022 to 31 December 2022. The amount is: 
Additional TRA = £200,000,000.00

In making this determination, LCCC notes the high volatility of power market prices, including the recent sharp market price drop and the recently observed disconnection between forward markets and the day-ahead market on which much of the CfD portfolio depends. LCCC considers that there is a high degree of likelihood that the original TRA will be insufficient to cover the quarter’s CfD costs. LCCC has set the additional TRA to a level based on the analysis of different scenarios that may develop and included market data up to and including 24 October 2022. 

Next steps:
•    Notices will be issued on 28 October 2022 confirming the additional TRA to active suppliers in Q4.
•    Invoices will be issued on 28 October 2022 and will detail the suppliers’ share of the additional TRA. 
•    The payment date for the additional TRA is 28 November 2022. 

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