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5 September 2022: Reconciliations: How does money move through the CfD scheme – resources

Since September 2021, record-breaking energy prices have significantly brought forward the point at which low-carbon generators supported by the Contracts for Difference (CfD) scheme began to make payments, rather than being due to receive them.

Learn more on the various aspects that interact to determine how much money becomes due to or from energy suppliers and CfD generators.

An introduction to the CfD and its role in the energy bill crisis

With so much in the news around the energy crisis, this document aims to provide an introduction on what this means for the CfD, this briefing includes:

  • Intro – Contracts for Difference (CfD) and the ‘green levy
  • What is the CfD and how does it work?
  • How has the CfD been working in the current market?
  • How does the CfD contribute to the Ofgem price cap?