Low Carbon Contracts Company (LCCC) has adjusted the Interim Levy Rate (ILR) and the Total Reserve Amount (TRA) for Q3 2023. The Quarterly Obligation Period starts on 1 July 2023 and ends on 30 September 2023. The effect of these changes will take place on 1 July 2023 (beginning of the quarter).
The amounts for the adjustment for Q3 2023 are:
Adjusted ILR = £5.438/MWh
Adjusted TRA = £288,762,337.04
In making this adjustment, LCCC notes the recent downward trend in the power markets and the high probability that prices continue to decline over the next couple of months, but recognizes the possibility that prices may increase, potentially rapidly. Market prices for this calculation were taken as closing mid-prices on 17 May 2023.
LCCC will be monitoring market prices closely 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. Also, further information on the Credit Cover requirements is available in the news section on the EMRS website.