Low Carbon Contracts Company and Electricity Settlements Company Operational Costs 2018-2019 to 2020-2021

We’re seeking views on the proposed 2018-2019, 2019-2020 and 2020-2021 operational cost budgets and resulting levies for the Low Carbon Contracts Company (LCCC) and the Electricity Settlements Company (ESC). We would also like your views on a proposal to amend legislation so that the levies can be set more than one financial year in advance.

The Low Carbon Contracts Company enters into and manages Contracts for Difference (CfD) with low carbon electricity generators. The Electricity Settlements Company 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 2018-2019, 2019-2020 and 2020-2021 will be reflected in secondary legislation, which is intended to be laid in Parliament in early 2018, to come into force (subject to the will of Parliament) before 1 April 2018.