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In March 2014 DECC consulted on regulations that will govern the process by which the Secretary of State can direct the counterparty to enter into CfDs with eligible generators. This route to a CfD offer is separate to the generic CfD allocation process, which is the main route for generators being offered a CfD. This document includes a summary of the responses to the consultation and decisions taken as a result of the feedback from stakeholders.
The government is seeking views on proposed regulations that will cover the process by which the Secretary of State can direct the CfD Counterparty to offer a CfD.
EMR will create a new mechanism to provide long-term revenue stabilisation to incentivise investment in low-carbon generation – Contracts for Difference (CfDs). CfDs will help to ensure that low carbon and reliable electricity generation is an attractive investment opportunity.
In previous consultations the government has said that the Secretary of State will retain the power to direct the CfD Counterparty Body to enter into bespoke CfDs outside the generic CfD allocation process. This consultation is to provide clarity to stakeholders on our intention to retain this power and to seek stakeholder views on the regulations that will govern the way it is exercised.