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 July 2023 to 30 September 2023.
The amounts for Q3 2023 are:
ILR = £2.789/MWh
TRA = £373,510,977.62
In making this determination, LCCC notes the recent downward trend in the power markets but recognizes the possibility that prices may increase, potentially rapidly. Market prices for this calculation were taken as closing mid-prices on 13 March 2023 as shared in this update:
Market reference date for Q3 2023 CfD Interim Levy Rate (ILR) and Total Reserve Amount (TRA)
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.
Save the day for our next quarterly webinar which will be held on Wednesday 26 April at 10am, where we will go over what we have observed in Q1 2023 compared to our forecasts and also discuss the ILR and TRA for Q3 2023. This is an opportunity to ask us questions about our forecasts. We also welcome any suggestions or feedback on what else would be useful for us to discuss during the webinar - send them our way via info@lowcarboncontracts.uk.