The Department for Business, Energy and Industrial strategy (BEIS) is seeking views on the proposed 2022/23, 2023/24 and 2024/25 operational cost budgets and resulting levies for the Low Carbon Contracts Company (LCCC) and the Electricity Settlements Company (ESC).
LCCC enters into and manages Contracts for Difference (including the Investment Contracts which have been transferred to it) with low carbon generators, awarding top-up payments for qualifying generation. ESC is responsible for all financial transactions relating to the Capacity Market, including making capacity payments to capacity providers, managing supplier credit cover and capacity providers’ auction credit cover.
The operational costs of the companies are recovered through levies on electricity suppliers, as set out in legislation. Subject to the outcome of the consultation, the regulations will be amended, and the operational cost levies for 2022/23 to 2024/25 will be reflected in secondary legislation, which is intended to be laid in Parliament in early 2022, to come into force (subject to the will of Parliament) before 1 April 2022.
The consultation will close at 11:45pm on 03 December 2021. For further details on the consultation and how to respond, please refer to BEIS’ dedicated webpage: Low Carbon Contracts and Electricity Settlements Company Operational Costs 2022-23 to 2024-25.