On 28 October 2022, LCCC raised an additional Total Reserve Amount for Q4 2022, which covers the period from 28 November 2022 to 31 December 2022.
- Additional Total Reserve Amount: £200,000,000.00
The reason behind LCCC determination is due to the high volatility of power market prices, including the recent sharp market price drop and the recently observed disconnection between forward markets and the day-ahead market on which much of the CfD portfolio depends. LCCC considers there is a high degree of likelihood the original Total Reserve Amount will be insufficient to cover the quarter’s CfD costs.
LCCC will continue to monitor the market prices closely and we will continue to support LCCC in keeping Suppliers informed. LCCC published its determination which is available on their website.
When will the Additional Reserve Payment be invoiced to Suppliers?
Suppliers additional Reserve Payment were invoiced on 28 October 2022 and the payment date is 28 November 2022. This is as detailed with the Contracts for Difference (Electricity Supplier Obligations) Regulations 2014.
Where can I locate information on how my Reserve Payment is calculated?
G3 – CfD Reserve Payment provides information on how Suppliers Reserve Payment is calculated. Further information is available on the Stakeholder Support – CfD Supplier webpage.