Views are sought on the proposed 2021 to 2022 operational cost budgets and resulting levies for the Low Carbon Contracts Company and the Electricity Settlements Company.
The Low Carbon Contracts Company (LCCC) enters into and manages Contracts for Difference 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 LCCC and ESC are recovered through levies on electricity suppliers.
The Energy Act 2013 requires that BEIS consults before making any regulations to amend the levies.
BEIS is not consulting on the proposed budget and associated levies for more than
the next financial year as electricity demand has reduced significantly during the COVID-19 pandemic and increased uncertainty with regards to a number of factors that are used to forecast electricity demand.
The possibility of further lockdowns or other actions the government may have to take to control further outbreaks could also impact on future electricity demand levels and make it difficult to forecast beyond the 2021/22 financial year.
Subject to the outcome of the consultation, the regulations will be amended, and the operational cost levies for 2021 to 2022 will be reflected in secondary legislation, which will come into force before 1 April 2021 subject to the will of Parliament.
This consultation closes at
You can take part in the consultation on the government website.