We have determined the Interim Levy Rate (ILR) and the Total Reserve Amount (TRA) for the Quarterly Obligation Period from 1 October 2023 to 31 December 2023.

The amounts for Q4 2023 are:

ILR = £5.798/MWh
TRA = £414,010,384.96

In making this determination, we have noted the recent volatility in the power markets and are closely monitoring in case of significant falls below our forecast. Market prices for this calculation were taken as closing mid-prices on 12 June 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 detail on LCCC’s calculations, please refer to our online CfD Levy Dashboards.

Upcoming events:
Save the date for our next quarterly webinar which will be held on 26/07/2023, where we will go over what we have observed in Q2 2023 compared to our forecasts and also discuss the ILR and TRA for Q4 2023. This is also an opportunity to ask us questions about our forecasts.

If you would like to attend, please sign up here.

If you have any suggestions or feedback on what else would be useful for us to discuss during the webinar, please send them our way via info@lowcarboncontracts.uk

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