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The Department for Energy Security & Net Zero is seeking views on the proposed operational cost budgets and resulting levies for the Low Carbon Contracts Company (LCCC) and the Electricity Settlements Company (ESC) for the financial years 2026/27, 2027/28 and 2028/29.
Read the consultation here: Low Carbon Contracts Company and Electricity Settlements Company Operational Costs 2026/27, 2027/28 and 2028/29
The consultation will close at 11:59pm on 2 January 2026. For further details on the consultation and how to respond, please refer to the DESNZ dedicated webpage.
The operational costs of LCCC and ESC are recovered through levies on electricity Suppliers, as set out in legislation. This enables LCCC to enter into and manage Contracts for Difference (CfD) with low carbon electricity generators, and manage payments for the Nuclear RAB scheme to Sizewell C, while the 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.
Subject to the outcome of the consultation, the relevant regulations will be amended and the operational cost levies for 2026/27, 2027/28 & 2028/29 will be reflected in secondary legislation. This is intended to be laid in Parliament to come into force (subject to the will of Parliament) before 1 April 2026.