Operational Costs Levy (OCL) and invoicing periods

The OCL will start to be payable from the point at which the Revenue Collection Contract is effective, which is 4 November.

RAB Start date and timing

Given the shorter charging year period and changes to the Day 1 RAB required following the decision to target 4 November, the Allowed Revenue will require an update which would result in an updated RABP.

DESNZ is working to finalise the updated Allowed Revenue as quickly as possible. Once Ofgem has notified the updated RABP to us, we will provide a further update with the final levies and reserve amounts.

The Operational Costs Levy will be invoiced on 28 November, the Reserve Amount will be invoiced on 17 November, collateral will be required by 28 November.

The ILR will start being invoiced in line with the table below.

A table of the different payment types, invoice dates and payment dates

Reconciliation and costs

The RAB Payment is set for the full charging year, per the licence. As such, the post quarter reconciliations would only be in relation to volume.

Start date certainty and RABP update

The move to the 4th November is to accommodate all elements required to activate the revenue collection contract.

Collections may only take place on the 1st of any given month. However, Revenue Commencement needs to occur on a business day. As 1 November is a weekend, 4 November is the first available business day for commencement.

We are working at pace to finalise all aspects of the commercial deal for Sizewell C, following which the revenue collection contract will become effective.

This is targeted to occur on 4 November. In the event of any delay we will provide an update.

Yes. DESNZ is working to finalise the updated Allowed Revenue as quickly as possible.

Once Ofgem has notified the updated RABP to us, we will provide a further update with the final levies and reserve amounts.

Supplier invoicing and reconciliations

View the latest data on the RAB Dashboard.

The Operational Costs Levy will be invoiced on 28 November, the Reserve Amount will be invoiced on 17 November, collateral will be required by 28 November.

The ILR will start being invoiced from 1 December.

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Disclaimer

These frequently asked questions and responses (“FAQs”) have been prepared by Low Carbon Contracts Company Ltd ("LCCC") in response to queries raised by stakeholders in relation to the content of the Contract for Difference (“CFD”), which is comprised of the CFD Agreement and CFD Standard Terms and Conditions (“Conditions”), as published by the Department of Energy & Climate Change on 29 August 2014. The FAQs are also applicable to Investment Contracts (“ICs”) but users of this website are advised to fully review the equivalent clauses in their ICs as there are differences between the CFD and the IC. These FAQs are subject to and are provided on the basis of the following:

  • The FAQs do not supersede or replace the provisions of the CFD or IC and are not intended to and do not constitute legal, investment, commercial or operational advice and should not be relied upon as such. Users of this website should not place reliance upon these FAQs and should refer to the full terms of the CFD or IC, and/or consult their professional advisors where they require information or advice on matters relating to the CFDs or ICs generally and/or any CFD or IC to which they are a party.
  • The FAQs reflect the current thinking and approach of LCCC and should not be viewed as in any way as binding on LCCC.
  • It is our intention to keep the FAQs under review and to publish revised issues from time to time.

Defined terms used in the FAQs but not defined therein have the meanings prescribed to them in the CFD or IC (as applicable) and the Energy Act 2013.