On 28 March 2022, LCCC issued a Stakeholder Bulletin to announce the following:
Quarterly Obligation Period 1 April 2022 to 30 June 2022
- Adjusted Total Reserve Amount (TRA) is £100,000,000.00
Quarterly Obligation Period 1 July 2022 to 30 September 2022
- Interim Levy Rate is £0.000/MWh
- Total Reserve Amount (TRA) is £221,302,176.06
Updates focused on the Quarterly Obligation Period 1 April 2022 to 30 June 2022 (Q2 2022)
LCCC have made the decision to reduce the Total Reserve Amount due to the extraordinary market circumstances arising from the Russian invasion of Ukraine. LCCC has set the TRA to a level based on the analysis of different scenarios that may develop in consequence of the conflict.
LCCC will be monitoring market prices closely and will make an adjustment to the ILR and/or TRA if market prices move in such a way as to lead LCCC to expect that the TRA will be insufficient to cover, or significantly in excess of the CfD costs, noting that once the quarter has started, the TRA can only be increased.
How does this affect my Reserve Payment Amount?
You will be invoiced for your share of the Total Reserve Amount in the next Quarterly Reconciliation invoice issued on 11 April 2022.
G3 – CfD Reserve Payment provides information on how the Reserve Payments are calculated.
Updates focused on the Quarterly Obligation Period 1 July 2022 to 30 September 2022 (Q2 2022)
LCCC will be monitoring the market prices closely, and may be required to consider an adjustment of the Interim Levy Rate or Total Reserve Amount or both, either upwards or downwards, prior to the start of the Quarterly Obligation Period. We will support LCCC in keeping Suppliers informed.
What are my requirements against Interim Rate payments and Credit Cover?
From 1 July 2022, Suppliers will be required to maintain Credit Cover using the adjusted ILR of £0.000/MWh. Further information on the process on lodging or requesting excess Credit Cover is available in WP42 – Supplier CfD Credit Cover.
Where can I locate information on how my Reserve Payment is calculated?
Your Reserve Payment Notice will be issued 11 April 2022. G3 – CfD Reserve Payment provides information on how the Reserve Payments are calculated.
EMRS Settlement Calendar will provide the dates for when invoices will be generated and when payments are due. Key Payment Figures will provide details of the ILR and the TRA for the Quarterly Obligation Periods. These are both available on the Settlement Data webpage on the EMRS website.
Who do I contact if I have a query?
|EMRS||Reserve Payment, Total Reserve Amount & Interim Levy Rate Notice, Quarterly Supplier Reconciliation Invoice, and Credit Cover||020 7380 4333||[email protected]|
|LCCC||General queries about LCCC or the management of the CfD scheme, including calculation of the Total Reserve Amount and Interim Levy Rate||020 7211 8881||[email protected]lowcarboncontracts.uk|