LCCC and ESC have published today, 4 December 2019, a Contracts for Difference (CfD) and Supplier Bulletin which covers updates to the CfD Register relating to projects which have recently achieved milestones under the CfD contract.
LCCC/ESC hosted a one-day conference on 14 November on the Electricity Market Reform schemes that the two companies administer: the Contracts for Difference and the Capacity Market. The slides shown to delegates on the day are now available for download.
LCCC and ESC have issued today a Contract for Difference Bulletin. This issue covers improvements to the CfD Register including the addition of data relating to Allocation Round three. Registration details for the forthcoming ILR/TRA Teleconference on 4 November and the LCCC-ESC Autumn Conference are also included.
LCCC and ESC have welcomed the opportunity to respond to the Call for Evidence on Digital Identity issued by DCMS and the Cabinet Office. These are some of our recommendations:
- Trust in digital identity would be enabled if stakeholders are subject to robust consequences for inaction, for knowingly providing false information or for interfering with others’ information;
- It would be sensible to replicate elements of other government organisations’ digital identification systems, such as the Passport Office, HMRC and DWP;
- The Passport Office has introduced a digital access portal, which could be used as an exemplar for a future digital identity portal.
LCCC and ESC have welcomed the opportunity to respond to the consultation on CCUS Business Models issued by BEIS. In our response we set out our views on deployment, delivery and ongoing commitment to the design process.
- There are different challenges for the initial deployment phase rather than post-2030 roll-out and we have focused on the initial stage;
- The CfD-inspired business models put forward by BEIS to support the deployment of capture facilities are operationally deliverable;
- LCCC looks forward to supporting BEIS in any detailed design process that might emerge.
LCCC and ESC have welcomed the opportunity to respond to the consultation on the RAB Model for New Nuclear Projects issued by BEIS. Our response puts forward these considerations:
- The setting of the Funding Cap is critical. If the right balance can be struck in the RAB funding model between risk and reward for investors, it is possible that new nuclear projects could be delivered at lower costs;
- Analysis would be required on not only those risks inherent to a nuclear building project but also on construction risks inherent to large, long-term construction projects;
- For the collection of the nuclear RAB levy, the funding model could use the CfD Supplier Obligation Regulations as a blueprint for a standalone nuclear RAB levy. Alternatively, a more expedient approach could be to simply extend the existing CfD Supplier Obligation regulations to cover the collection of monies under a nuclear RAB levy.
LCCC and ESC have welcomed the opportunity to respond to the consultation on the preferred TOM for MHHS issued by Ofgem. Key messages in our response include:
- The preferred TOM for MHHS may have impacts on the EMR Regulations and Rules;
- The preferred TOM for MHHS may also impact on ESC’s settlement system.
LCCC and ESC have welcomed the opportunity to respond to the consultation on Reforming the Energy Industry Codes issued by BEIS and Ofgem.
- In our response we recommend that there is coherence between the evolution of the EMR schemes, any new schemes and the evolution of the market and codes that govern it. This will require alignment of priorities for change between the legislator BEIS and the ‘strategic body’, in order to ensure a successful transition to net zero emissions by 2050.
- LCCC and ESC manage the change pipeline for settlement of the Contract for Difference and Capacity Market schemes, including the prioritisation process for change across both. We propose that this prioritisation process provides a useful template for either the ‘strategic body’ or the new code managers.
ESC has issued today a new Electricity Supplier and Capacity Market Bulletin following the European Commission's approval of the GB Capacity Market. The issue covers key guidance for suppliers (EMRS Circular 193) and a timeline for supplier payments. It also provides information about the forthcoming LCCC/ESC Autumn Conference in London on 14 November and how to register. Attending the event will allow you to find out more about the timetable and activities for the restart of the Capacity Market.
LCCC has issued today a new Contract for Difference Bulletin. This issue covers confirmation of Allocation Round three contract signatures, registration for the forthcoming CfD Interim Levy Rate and Total Reserve Amount for Q1 2020 and details of the next scheduled update of the CfD register and the CfD dashboards.