On 15 February 2024, LCCC issued a Stakeholder Bulletin to confirm an adjustment to the Interim Levy Rate and Total Reserve Amount from 1 April 2024 to 30 June 2024 as follows:
- Increase Interim Levy Rate to £11.522/MWh from £7.755/MWh
- Decrease Total Reserve Amount to £190,369,345.01 from £296,985,170.49
Suppliers will receive a formal notice to confirm these adjustments.
Suppliers are required to maintain their Credit Cover requirement using the Interim Levy Rate applicable for the Quarterly Obligation Period. If a Supplier is required to lodge additional Credit Cover, please ensure you have sufficient Credit Cover lodged by 5:00pm on 29 March 2024. We have previously published supporting information in the News items LCCC Confirms ILR and TRA for Q2 2024.
The Key Payment Figures for 2024/25 are updated to reflect these change and this document is located on the Settlement Data for Suppliers webpage.
Why was an adjustment to the Interim Levy Rate and Total Reserve Amount required?
LCCC forecasts an additional 1.5GW of capacity to commence operation during the quarter and that there is a notable decrease in summer forward prices.
As a result of the increase to the Interim Levy Rate it has been possible to make a significant reduction to the Total Reserve Amount which will help to offset some of the additional Credit Cover requirements for Suppliers.
The Stakeholder Bulletin and the CfD Levy Dashboards provides further details as to why these adjustments were required.