Low Carbon Contracts Company (LCCC) has adjusted the Interim Levy Rate (ILR) and the Total Reserve Amount (TRA) for Q1 2024. The Quarterly Obligation Period starts on 1 January 2024 and ends on 31 March 2024. The effect of these changes will take place on 1 January 2024 (beginning of the quarter).
The amounts for the adjustment for Q1 2024 are:
Adjusted ILR = £4.540/MWh
Adjusted TRA = £467,160,775.24
In making this adjustment, LCCC notes the recent downward trend of prices in the forward power markets. Market prices for these adjustments were taken as closing mid-prices on 2 November 2023.
The public details of this forecast have been supplied to Ofgem and they can use them in their determination of the price cap for this period.
LCCC will continue to monitor market prices and will make an adjustment to the ILR and/or TRA if market prices move in such a way as to lead LCCC to expect over-collection or that the TRA and ILR may be insufficient to cover the CfD costs. Note that once the quarter has started, the TRA can only be increased, while ILR can be increased or decreased.