LCCC determines ILR and TRA for Q2 2023 and adjusts TRA for Q1 2023

Low Carbon Contracts Company (LCCC) has determined the Interim Levy Rate (ILR) and the Total Reserve Amount (TRA) for the Quarterly Obligation Period from 1 April 2023 to 30 June 2023.

The amounts for Q2 2023 are:
ILR = £0.000/MWh
TRA = £171,348,558.59

LCCC notes the high volatility of power market prices and the recently observed disconnection between forward markets and the day-ahead market on which much of the CfD portfolio depends.

Market prices for this calculation were taken as closing mid-prices on 5 December 2022 as shared in this update: Market reference date for Q2 2023 CfD Interim Levy Rate (ILR) and Total Reserve Amount (TRA).

Due to these extraordinary market circumstances, LCCC has also increased the Total Reserve Amount (TRA) for the Quarterly Obligation Period from 1 January 2023 to 31 March 2023, to a level based on the analysis of different scenarios that may develop.

No adjustment has been made to the Interim Levy Rate (ILR). The adjusted TRA amount for Q1 2023 is: TRA = £300,000,000.00 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 that the TRA will be insufficient to cover the CfD costs, noting that once the quarter has started, the TRA can only be increased. For further detail on LCCC’s calculations, please refer to our online CfD Levy Dashboards.

Please visit the EMRS website for further updates on the Interim Levy Rate & Total Reserve Amount for Q2 2023.