The Department for Business, Energy and Industrial Strategy (BEIS) has today launched a consultation on the proposed 2021/22 operational cost budgets and levies for the Low Carbon Contracts Company (LCCC) and the Electricity Settlements Company (ESC).
The operational costs of LCCC and ESC are recovered through levies on electricity suppliers, as set out in legislation. This enables LCCC to enter into and manage Contracts for Difference (CfD) with low carbon electricity generators, while the ESC is responsible for financial transactions relating to the Capacity Market, including making capacity payments to capacity providers, controlling collateral and managing auction bid bonds.
Subject to the outcome of the consultation, the relevant regulations will be amended and the operational cost levies for 2021-22 will be reflected in secondary legislation. This is intended to be laid in Parliament in early 2021, to come into force (subject to the will of Parliament) before 1 April 2021.
The consultation will close at 11:45pm on 14 December 2020. For further details on the consultation and how to respond, please refer to BEIS' dedicated webpage: Low Carbon Contracts Company and Electricity Settlements Company Operational Costs 2021 to 2022.