Low Carbon Contracts Company (LCCC) has determined the Interim Levy Rate (ILR) and Total Reserve Amount (TRA) for the Quarterly Obligation Period 1 January 2022 to 31 March 2022.
The amounts are:
- ILR = £1.908/MWh
- TRA = £303,432,348.09
In making this determination, LCCC notes the high volatility of power market prices. It will continue to monitor market prices closely, and considers that there is a high chance of an adjustment to the ILR or TRA or both, either upwards or downwards, prior to the start of the quarter. Market prices for this calculation were taken as closing mid-prices on 10 September 2021.
LCCC has also decided to reduce the Interim Levy Rate (ILR) for the Quarterly Obligation Period 1 October 2021 to 31 December 2021. The adjusted amount is:
- ILR = £0.000MWh
Market prices for this determination were taken from 17 September 2021. Please note that LCCC cannot set an ILR of less than £0.000/MWh. LCCC will be monitoring market prices closely during the quarter, and will make an upward adjustment to the ILR if market prices move in such a way as to lead LCCC to expect that the TRA will be insufficient to cover any increase in CfD costs.
For further detail on LCCC’s calculations, please refer to our online CfD Levy Dashboards.
A Stakeholder Bulletin outlining these items has been published today and is available to download via the button on this webpage. In addition, the bulletin includes text from the News item (also published here) on the implications of the CfD portfolio's net negative costs in September 2021, and an update on IPIF Fort Industrial REC.