Low Carbon Contracts Company and Electricity Settlements Company Operational Costs 2021 to 2022
Download the full outcome
Detail of outcome
We made no changes to the proposed budgets, except for one amendment:
- the consultation preceded the 2020 Spending Review which announced a pay pause for the majority of the public sector. The operational costs of the company have been amended to reflect this
The operational costs of LCCC and ESC are funded through a levy on electricity suppliers. Secondary legislation to revise the companies’ operational cost levies for 2021 to 2022 (The Electricity Supplier Payments (Amendment) Regulations 2021) has now been laid before Parliament. If passed, it will come into force on 1 April 2021.
Detail of feedback received
We received one response to this consultation. The government response summarises the comments received and addresses points raised. The response was generally supportive of the proposed operational cost budgets for both companies for the next financial year.
Original consultation
Consultation description
The Low Carbon Contracts Company (LCCC) enters into and manages Contracts for Difference (CfD) with low carbon electricity generators. The Electricity Settlements Company (ESC) 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 2021 to 2022 will be reflected in secondary legislation, which will come into force before 1 April 2021 subject to the will of Parliament.
See the BEIS consultation privacy notice.
Please do not send responses by post to the department at the moment as we may not be able to access them.
Documents
Last updated 21 January 2021 + show all updates
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Government response published.
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First published.