We have completed the Contracts for Difference (CfD) Interim Levy Rate (ILR) and Total Reserve Amount (TRA) forecasts for Q4 2023. These amounts will be communicated to suppliers in the usual way at the end of June 2023.
The ILR/TRA determination used market information data up to and including 12/06/2023.
For further detail on the timings involved in calculating the ILR and TRA forecasts and how these fit into the quarterly reconciliation process, please refer to this presentation. Please note that, whilst this presentation was delivered as part of our Q3 2022 ILR and TRA webinar on 28 April 2022, the process is comparable across quarters.
BSUoS True-Up Payments:
We will be making true-up payments to CfD generators equal to £1,012,842.99 on 27/06/2023.
Background:
The CfD strike price contains an adjustment mechanism which protects generators from BSUoS charge increases. CMP308 removes the requirement for CfD generators from being required to pay BSUoS charges. As a result, LCCC removed the BSUoS adjustment component from the strike price adjustment mechanism by amending the CfDs affected by this.
Included also in the amendment is a one off true-up to ensure that generators are not adversely impacted by the lagged BSUoS charges.
The credit notes to CfD generators were issued on 20/06/2023. There will also be 3 further payments that LCCC will pay to CfD generators in the next 3 quarters (09/23, 12/23, 04/24)
If you have any questions about this announcement, please email info@lowcarboncontracts.uk.
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 suggests or feedback on what else would be useful for us to discuss during the webinar, please send them our way via info@lowcarboncontracts.uk