Contracts for Difference (CfD) Allocation Round 4: further changes to the CfD contract

This consultation seeks views on further clarificatory and technical drafting changes to the Contracts for Difference Standard Terms and Conditions in advance of Allocation Round 4 (AR4), which is scheduled to open in December 2021. The proposed changes will:

• ensure that the contract continues to function as intended by reflecting the UK’s position in a number of specific areas relevant to the CfD scheme following the UK’s exit from the EU
• subject to a final decision by Ofgem on whether and when to remove Balancing Services Use of System Charges from generators, disapply the annual CfD strike price adjustment for changes to balancing system charges in respect of relevant AR4 CfD Generators
• allow generators who are awarded contracts in AR4 more time to fulfil their Initial Conditions Precedent following contract signature, to reflect the larger number of applicants expected to apply to participate in the forthcoming allocation round

The proposed drafting changes are shown as tracked amendments in the CfD Standard Terms and Conditions, published alongside this consultation document.

We welcome responses from anyone with an interest in the proposals, in particular from those considering participating in AR4.

Read the BEIS consultation privacy notice.

Please don’t send responses by post to the department at the moment as we may not be able to access them.