We have adjusted the Interim Levy Rate (ILR) and the Total Reserve Amount (TRA) for Q2 2024. The Quarterly Obligation Period starts on 1 April 2024 and ends on 30 June 2024. The effect of these changes will take place on 1 April 2024 (from the start of the quarter).
The amounts for the adjustment for Q2 2024 are:
Adjusted ILR = £11.522 /MWh
Reduced TRA = £190,369,345.01
In making this adjustment, we noted the continuing downward trend of prices in the forward power markets. Market prices for these adjustments were taken as closing mid-prices on 29 January 2024.
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.
We 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.
For further detail on LCCC’s calculations, please refer to our online CfD Levy Dashboards and the EMRS website.