Low Carbon Contracts Company and Electricity Settlements Company operational costs 2022/2023 to 2024/2025
Read the full outcome
Detail of outcome
Based on the response to this consultation we do not need to amend the proposed budgets for the LCCC and the ESC.
The Energy Act 2013 provides that regulations setting the operational cost levies are subject to the ‘affirmative’ Parliamentary procedure. We have now laid the legislation to amend the Regulations before Parliament. Depending on their approval, the provisions for the 2022 to 2023, 2023 to 2024 and 2024 to 2025 levies will come into effect:
- for the settlement cost levy, on the day after the amending regulations are made
- for the operational cost levy, on 1 April 2022
Detail of feedback received
We received 1 response to this consultation from Scottish Power. Their response was positive and welcomed the opportunity to review the proposed operational costs budgets for the LCCC and the ESC.
Original consultation
Consultation description
The Low Carbon Contracts Company (LCCC) enters into and manages Contracts for Difference (CfD) with low carbon electricity generators. The Electricity Settlements Company (ESC) is responsible for financial transactions relating to the Capacity Market, including making capacity payments to capacity providers, controlling collateral and managing auction bid bonds.
The operational costs of the companies are recovered through levies on electricity suppliers, as set out in legislation.
Subject to the outcome of the consultation, the regulations will be amended, and the operational cost levies for the financial years 2022/2023 to 2024/2025 will be reflected in secondary legislation.
See the BEIS consultation privacy notice.
Please do not send responses by post to the department at the moment as we may not be able to access them.
Documents
Updates to this page
Last updated 7 February 2022 + show all updates
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Government response published.
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First published.