We have determined the Interim Levy Rate (ILR) and the Total Reserve Amount (TRA) for the Quarterly Obligation Period from 1 April 2024 to 30 June 2024.
The amounts for Q2 2024 are:
ILR = £ 7.755 /MWh
TRA = £ 296,985,170.49
In making this determination, we have noted the recent volatility in power markets and are monitoring closely in case of significant falls below our forecast. Market prices for this calculation were taken as closing mid-prices on 29 November 2023 as shared in the update.
We will be monitoring market prices closely and will make an adjustment to the ILR and/or TRA if the 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 details on LCCC’s calculations, please refer to our online CfD Levy Dashboards and the EMRS website.
BSUoS True-Up Payments:
As outlined in this update, LCCC has removed the BSUoS adjustment component from the strike price adjustment mechanism for some CfDs. This process includes a set of one off true-ups to ensure that these generators are not adversely impacted by the lagged BSUoS charges. We cannot rule out the possibility of further such payments in the future.
For payments due in Q2 2024: Credit notes will be issued on 18/04/2024 for payments on 25/04/2024 totalling £4,602,399.43.
For payments due in Q1 2024: Credit notes will be issued on 18/01/2024 for payments on 25/01/2024 totalling £4,602,399.43.
Payments in Q4 23: None
Payments in Q3 23: £8,191,955.87
Payments in Q2 23: £1,012,842.99
Webinar:
Our quarterly webinar is an opportunity to directly ask us questions about our forecasts. The next webinar will be held on January 25 at 10am where we will also compare the outturn in Q4 2023 with our forecasts and discuss the ILR and TRA for Q2 2024.
You can register here to secure you spot.
We welcome any suggestions or feedback on what else it would be useful for us to discuss during the webinar – please send them our way via info@lowcarboncontracts.uk.
New data:
In response to requests from suppliers, this quarter we are releasing more information in the advanced forecasts section of the data portal. The Advanced Forecast ILR TRA dataset now contains forecasts of the total CfD generation for each quarter and the total CfD capacity at the end of each quarter. If you want to suggest more data that we could consider releasing, please contact us at info@lowcarboncontracts.uk.
February Supplier Event:
Calling all suppliers! LCCC is cordially inviting you to our Supplier Engagement Event to be held on 29 February 2024 in Central London. We will be showcasing overviews of our current activities, our plans for the future covering RAB, EIIs, MHHS, DPA, Forecasting, Policy, and much more as well as presentations from our special guests: EMRS, ICoSS and Energy UK.
For more details and to register, visit our website.
We hope to see you there!