Low Carbon Contracts Company and Electricity Settlements Company operational costs under consultation


Department for Business, Energy & Industrial Strategy (BEIS) is seeking views on the proposed operational cost budgets and resulting levies for the Low Carbon Contracts Company (LCCC) and the Electricity Settlements Company (ESC) for the years 2022/2023 to 2024/2025 in a new consultation.

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.

The Energy Act 2013 requires that BEIS consults before making any regulations to amend the levies. In legislation, the levy relating to ESC is called the ‘settlement costs levy’, and the levy relating to LCCC is called the ‘operational costs levy’.

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.

This consultation closes at

More information about this consultation and how to take part is available on the UK Government website.