Low Carbon Contract Company (LCCC) has adjusted the Interim Levy Rate (ILR) to £5.755/MWh from £9.954/MWh. This is effective from 20 May 2021 to 30 June 2021, the end of the current quarterly obligation period. On behalf of LCCC, EMRS has issued an In Period Adjustment Interim Levy Rate Notice to Suppliers.
Why has the Interim Levy Rate been adjusted?
Since the start of Q1 2021, LCCC has been building a surplus of income over payments, caused by a combination of lower-than-expected generator payments and higher power prices. In making this determination, LCCC has assumed the period in question will not be subject to any prolonged period of national lockdown and that reductions in demand due to Covid-19 will be 2% compared with the demand we would otherwise have expected.
The CfD Levy Dashboard published by LCCC has been updated to reflect this adjustment. There is no change to the Total Reserve Amount.
How does this affect my Credit Cover requirement?
From 20 May 2021, Suppliers will be required to maintain Credit Cover using the adjusted ILR of £5.755/MWh. Suppliers will be able to request any excess lodged cash Credit Cover or reduce the value of the Letter of Credit if applicable. Further information on the process for returning Credit Cover is available in WP42 – Supplier CfD Credit Cover.