BEIS response to the consultation: Low Carbon Contracts Company and Electricity Settlements Company Operational Costs 2021 to 2022

On 21 January 2021, the Department for Business, Energy and Industrial Strategy (BEIS) published the response to this consultation, summarising the feedback received on each of the consultation questions and setting out the government’s response to the points raised. The Low Carbon Contracts Company and Electricity Settlements Company Operational Costs 2021 to 2022 consultation was published on 16 November 2020 and the government sought views on the proposed 2021 to 2022 operational cost budgets and resulting levies for the Low Carbon Contracts Company (LCCC) and the Electricity Settlements Company (ESC).

The conclusion from the consultation is the Operational Costs for 2021/22 is as follows:

  • For LCCC the Operational Levy Rate is £0.0760/MWh
  • For ESC the Total Settlement Costs Levy is £7.472m

The relevant regulations will be amended and the operational cost levies will be reflected in secondary legislation. This is intended to be laid in Parliament in early 2021, to come into force (subject to the will of Parliament) before 1 April 2021.

For further details on the consultation and the response document please refer to the dedicated webpage: LCCC and ESC Operational Costs 2021 to 2022. LCCC and ESC have also confirmed this via a news item Government publishes response to consultation on LCCC and ESC’s 2021/22 operational cost levies | Low Carbon Contracts Company.