Contracts for difference Supplier Obligation: Improving efficiency & transparency
A consultation on changes to the contracts for difference (CFD) Supplier Obligation, to improve efficiency and transparency, reducing consumers’ CFD costs.
The consultation and impact assessment set out proposed amendments to the contracts for difference (CFD) Supplier Obligation. The amendments aim to lower the costs of CFDs that are passed onto consumers by:
- Improving the efficiency of the CFD Supplier Obligation design
- Improving the transparency around CFD costs
- Making minor and technical amendments that clarify provisions in the regulations
The department for Business, Innovation and Skills (BIS) are jointly consulting on amendments to the list of sectors within which electricity intensive companies can apply for an exemption from the costs of CFDs.
This consultation is relevant to electricity suppliers in Great Britain, low carbon electricity generators who hold or intend to apply for CFDs, electricity consumers and their representatives, ELEXON, the Low Carbon Contracts Company and other stakeholders with an interest in the energy sector.