EMR: Contracts for Difference (Allocation) Regulations – Consultation on Non-Delivery Disincentive Exemptions
This consultation is seeking views on further details of the policy that will introduce incentives to prevent early drop out and encourage contract signature and delivery of a CFD. The changes will be reflected in amended secondary legislation which we expect to lay in Parliament in early 2015.
This consultation sets out proposals for the Non-Delivery Disincentive (NDD) for Contracts for Difference (CFDs). This policy is intended to incentivise successful CFD parties to deliver, and to minimise the risk of CFD contracts being awarded to projects which are in fact not able to deliver.
The changes will be introduced via amendments to The Contracts for Difference (Allocation) Regulations, which we expect to lay in Parliament in early 2015. Subject to approval of the draft regulations by Parliament, the changes will be in force for the second CFD allocation round.
It should be noted that we intend for the Non-Delivery Disincentive policy as set out in the consultation to apply to applications in the second allocation round, subject to changes to the policy and its implementation made as a result of this consultation.
The consultation closes on 5 November. Responses should be sent to CFDconsultation@decc.gsi.gov.uk.