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In October 2016, the government issued a consultation that proposed the 2017/18 operational costs and resulting levies for the Low Carbon Contracts Company and Electricity Settlements Company. This document sets out the government’s response to feedback received from that consultation. It confirms that the total operational cost budgets for both companies remain unchanged.
The regulations, setting the levies, have now been laid before Parliament (The Electricity Supplier Payments (Amendment) Regulations 2017).
This consultation seeks views on the proposed 2017/18 operational cost budgets and resulting levies for the Low Carbon Contracts Company and the Electricity Settlements Company. The Low Carbon Contracts Company enters into and manages Contracts for Difference 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. Following the outcome of the consultation, the operational cost levy rates for 2017/18 will be reflected in secondary legislation, which is intended to be laid in Parliament in early 2017, to come into force (subject to the will of Parliament) before 1 April 2017.
The consultation closes on 25 November 2016.