Levy Summary

Contracts for Difference

The CfD (Contracts for Difference) levy provides revenue stability for eligible low carbon generators through a guaranteed strike price. Suppliers will receive or make payments based on the differential between the Generator’s strike price and the market price.

Total annual cost of scheme (including operational cost levies):

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Financial Year 2021 -2022 Costs

£280.6m

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Financial Year 2022 -2023 Costs

£5.3m

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Financial Year 2023 -2024 Costs

£1,882.9m

Capacity Market

The CM (Capacity Market) manages the security of supply of electricity and ensures that Britain has enough reliable capacity to meet demand at least cost to consumers. It does this by providing a payment against the Capacity Market Supplier Charge’ and ‘Capacity Market Settlement Costs Levy for reliable sources of capacity through annual auctions.

Total annual cost of scheme (including operational cost levies):

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Delivery Year 2021 -2022 Costs

£856.3m

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Delivery Year 2022 -2023 Costs

£680.5m

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Delivery Year 2023 -2024 Costs

£1,031.7m

Forthcoming Levies

Nuclear RAB

In 2022 the government introduced the option of a Regulated Asset Base (RAB) model to help fund future nuclear energy projects during construction, commissioning and operation. This will be funded by a levy on electricity suppliers.