Low Carbon Contracts Company (LCCC) has determined the Interim Levy Rate (ILR) and Total Reserve Amount (TRA) for the Quarterly Obligation Period 1 July 2022 to 30 September 2022. The amounts are:
- ILR = £0.000/MWh
- TRA = £221,302,176.06
In making this determination, LCCC notes the high volatility of power market prices. Market prices for this calculation were taken as closing mid-prices on 14 March 2022.
LCCC has also reduced the Total Reserve Amount (TRA) for the Quarterly Obligation Period 1 April 2022 to 30 June 2022. The adjusted amount is:
- TRA = £100,000,000.00
Due to the extraordinary market circumstances arising from the Russian invasion of Ukraine, LCCC has set the TRA to a level based on the analysis of different scenarios that may develop in consequence of the conflict.
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, or significantly in excess of 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.
A Stakeholder Bulletin outlining these items has been published today and is available to download via the button on this webpage.