Guidance and Publications

Low Carbon Contracts Company (LCCC) Annual Report 2016/17

Posted 08.06.2016

The 2016/17 Annual Report of the Low Carbon Contracts Company (LCCC) showcases effective financial management, successful Contracts for Difference (CFD) administration, and efficient Capacity Market operations. Highlights include returning £3.8 million to suppliers, ensuring all CFD milestones were met, and implementing a fully operational settlement system for timely payments. These achievements support the UK's low-carbon energy transition.

Key Performance Indicators (KPIs) and Financial Management:

• The Low Carbon Contracts Company (LCCC) successfully managed its financial and operational budgets, leading to the return of £3.8 million to suppliers. The company maintained effective controls to identify, monitor, and manage strategic risks, achieving over 90% completion of mitigating actions on time.

Contracts for Difference (CFD) Management:

• LCCC effectively managed its CFDs, ensuring all contractual milestones were met. This included managing projects through their Operational Conditions Precedent and starting CFD operations for several projects. An independent survey was conducted to gather feedback from stakeholders, which will be used to improve future management of CFDs.

Settlement System Implementation:

• LCCC successfully delivered a fully operational CFD settlement system. The system enabled timely and accurate settlement of CFD generator payments, Supplier Obligation Levy collections, and operational cost levies. The first CFD payment was made in June 2016, and subsequent payments were handled effectively.

Capacity Market Operations:

• LCCC efficiently managed the Capacity Market settlement operations, ensuring the systems were in place to handle the financial transactions and operational requirements. This included timely delivery and management of settlement operations to support the Capacity Market.