Key CFD Terms
This section summarises key CFD terms for those considering applying for the Allocation Round process. Further information can be found in the Generator section of this website. We encourage all applicants to read the CFD in full and to take legal advice prior to making an application.
Minor & Necessary Modifications
Under the CFD, Generators may request minor and necessary modifications to the CFD Standard Terms and Conditions. Generators can request these modifications from the date of publication of an Allocation Round notice until 20 working days before the Allocation Round closing date.
Further information and guidance on Minor & Necessary Modifications can be found here.
Initial Conditions Precedent/Know Your Customer
The Initial Conditions Precedent are the first delivery milestone of the Contract for Difference. The Generator must fulfil these conditions within 10 business days of the CFD Agreement Date (the date on which the Generator enters into the CFD). In order to discharge these conditions the Generator will need to provide LCCC with the following:
A legal opinion confirming the Generator’s capacity and authority to enter into the CFD;
A completed Know Your Customer (‘KYC’) form, along with relevant supporting information; and
3. A description of the Facility, along with a map or plan of the Facility, detailing the assets comprising the Facility.
Further information about the Initial Conditions Precedent and template documents can be found here.
Milestone Delivery Requirement
Following the Initial Conditions Precedent, the Milestone Delivery Requirement is the next contractual milestone which must be fulfilled by the Generator. The Milestone Requirement in the CFD is designed to demonstrate commitment and progression of the projects to achieve generation by the dates stated in the CFD contract. The Generator has a 12 month deadline to fulfil the Milestone Requirement by the Milestone Delivery Date.
Further information on the Milestone Delivery Requirement can be found here.