Download the full outcome
Detail of outcome
This publication provides the Government response to the Contracts for Difference (Allocation) Regulations – Consultation on Non-Delivery Disincentive Exemptions.
Following the consultation government is confirming its intention to implement the Non-Delivery Disincentive policy in amending legislation in accordance with the NDD policy update published on 28 January 2015 in time for a potential 2015 allocation round.
Changes we are undertaking are:
- to broaden the definition of property interest in amending legislation so that it includes freehold, leasehold, agreements for lease and lease options; and
- include in regulations that in the case where an offer of a CFD was not accepted, there will be a ground for exemption where litigation commenced or concluded after the last date to withdraw the application and that litigation would have had a material adverse effect on an applicant’s ability to comply with the terms of the CFD.
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.