LCCC determines Interim Levy Rate and Total Reserve Amount for Q4 2021 and adjusts rates for Q3 2021

Low Carbon Contracts Company (LCCC) has determined the Interim Levy Rate (ILR) and Total Reserve Amount (TRA) for the Quarterly Obligation Period 1 October 2021 to 31 December 2021.

The amounts are:

  • ILR = £6.494/MWh
  • TRA = £208,986,765.06

In making this determination, LCCC has assumed the period in question will not be subject to any prolonged period of national lockdown and that demand will be back to normal levels. Market prices for this calculation were taken as closing mid-prices on 17 June 2020.

LCCC has also decided to reduce the Interim Levy Rate (ILR) and Total Reserve Amount (TRA) for the Quarterly Obligation Period 1 July 2021 to 30 September 2021. The adjusted amounts are:

  • ILR = £6.373/MWh
  • TRA = £95,117,804.99

This is as a result of a projected overcollection, caused by high market prices, and hence, low CfD payments for Q3 2021. We will continue to monitor the market prices and projected CfD costs closely. In making this determination, LCCC has assumed the period in question will not be subject to any prolonged period of national lockdown and that reductions in demand due to Covid-19 will be 2% compared with the demand we would otherwise have expected.

For further detail on LCCC’s calculations, please refer to  our online CfD Levy Dashboards.

A Stakeholder Bulletin outlining this has been published today and is available to download via the button on this webpage.