Quarterly Obligation Period 27 April 2023 to 30 June 2023
- Additional Total Reserve Amount £150,448,690.48
- Adjusted the Interim Levy Rate to £3.819/MWh from £0.00/MWh
To view LCCC’s calculations, please visit the CfD Levy Dashboards. For background information, here is the Stakeholder Bulletin that confirmed the ILR for 27 April 2023 to 30 June 2023 and confirms the reasons for the increase.
EMRS Settlement Calendar will provide the dates for when invoices will be generated and when payments are due. The Key Payment Figures for 2023/24 have been updated to reflect these changes and are located on the Settlement Data for Suppliers webpage.
Suppliers must make Interim Rate payments and provide Credit Cover if they supply electricity within the Quarterly Obligation Period. Suppliers are required to maintain their Credit Cover requirement using the ILR applicable for the Quarterly Obligation Period.
Do you have sufficient Credit Cover lodged?
Please ensure you have sufficient Credit Cover lodged by 5pm on 26 April 2023 to meet the increase in the ILR. The relevant reference period of 29 March 2023 to 18 April 2023 will be used to calculate your Credit Cover Amount for 27 April 2023.
When will the additional Total Reserve Amount be invoiced and payment due?
The Suppliers’ share of the additional Total Reserve Amount will be issued on 20 March 2023 and payment is due on 27 April 2023.
G3 – CfD Reserve Payment provides further information on how the Reserve Payments are calculated.
How is my Credit Cover Calculated?
The minimum Credit Cover requirement is a Supplier’s metered volumes for a 21 day reference period multiplied by the Interim Levy Rate. G5 – Supplier CfD Credit Cover provides information on how to calculate your Credit Cover, the daily Credit Cover Report and what happens if a Supplier doesn’t lodge sufficient Credit Cover.
What is my current CfD Credit Cover balance?
The CfD Credit Cover balance can be found in the latest Daily Credit Cover Report sent to your company email and also available to download on My EMRS. Please see item J2022 (Column H) on the report which reflects the Total Credit Cover held (combination of cash and LoC value) as of the day. Items names and further details are available within the Data Transfer Catalogue (DTC).
What is the process for lodging Credit Cover?
WP42 – Supplier CfD Credit Cover provides details on the process for lodging Credit Cover including the Letter of Credit templates (p21-25) and the approved bank account details for cash Credit Cover (p6).
In order for Credit Cover to be considered;
- Cash amount must have been received in the relevant bank account;
- Valid Letter of Credit received electronically; and
- Received by 5pm 26 April 2023
PLEASE NOTE: The bank account details and Letter of Credit templates are different to those used for CM Credit Cover.
Can a Supplier request the return of Credit Cover?
WP42 – Supplier CfD Credit Cover provides details on the request of return of Credit Cover via the Service Desk. Credit Cover will be released subject to the Supplier holding excess Credit Cover and not having any outstanding obligations.
We have noted this process as we appreciate the £0.000/MWh ILR from 1 April 2023 to 27 April 2023 though would encourage where possible to maintain Credit Cover to support the £3.819/MWh ILR from 27 April 2023.
What are the key dates I need to be aware of?
The table below shows the key dates for the 27 April 2023 to 30 June 2023 Quarterly Obligation Period following this announcement.
|20 March 2023||Notices and invoice for additional TRA issued to Suppliers|
|26 April 2023||Suppliers ensure sufficient Credit Cover lodged for ILR of £3.819/MWh|
|27 April 2023||Payment due for the additional TRA|
|27 April 2023||ILR of £3.819/MWh applies|
|9 May 2023||Suppliers invoiced for the first ILR payment based on £3.819/MWh|
Who do I contact if I have a query?
|EMRS||Reserve Payment, Total Reserve Amount and Interim Levy Rate Notice, Quarterly Supplier Reconciliation Invoice, and Credit Cover||020 7380 4333||[email protected]|
|LCCC||Calculation of the Total Reserve Amount and Interim Levy Rate||020 7211 8881||[email protected]|
|LCCC||General queries about LCCC or the management of the CfD scheme||020 7211 8881||[email protected]|