On 27 September 2023, LCCC issued a Stakeholder Bulletin to confirm for the Quarterly Obligation Period 1 January 2024 to 31 March 2024 as follows:
- Interim Levy Rate is £4.355/MWh
- Total Reserve Amount is £559,042,630.40
Suppliers will receive formal notices to confirm this announcement. LCCC have provided details in the Stakeholder Bulletin about this determination. For further detail on LCCC’s calculations, please refer to the CfD Levy Dashboards.
On the Settlement Data for Suppliers webpage, the updated Key Payment Figures for 2023/24 are now available.
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.
If a Supplier is required to lodge additional Credit Cover, please ensure you have sufficient Credit Cover lodged by 5:00pm on 29 December 2023.
To help Suppliers we have provided the following useful Frequently Asked Questions (FAQs).
What is the process for lodging Credit Cover or additional 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 5:00pm on 29 December 2023
PLEASE NOTE: The bank account details and Letter of Credit templates are different to those used for CM Credit Cover.
How do I calculate my CfD Credit Cover?
The minimum Credit Cover requirement is a Supplier’s metered volumes for 21 days reference period multiplied by the Interim Levy Rate.
To help, we will first calculate your Credit Cover amount on 10 January 2024 and this will use the reference period as follows:
- 1 December 2023 to 21 December 2023
G5 – Supplier CfD Credit Cover provides further details and an example to illustrate how to calculate your Credit Cover.
What is my current CfD Credit Cover balance?
You can locate your CfD Credit Cover balance in the latest Daily Credit Cover Report sent to your company email and 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).
Where can I locate more information on CfD Credit Cover?
When will I receive my invoice for my Reserve Payment?
Suppliers will receive confirmation of their share of the Total Reserve Amount as part of the next Quarterly Reconciliation on 10 October 2023.
The Reserve Payment is part of the subsequent Quarterly Reconciliation within the Quarterly Obligation Period and invoiced on the 10 October 2023.
Where can I locate information on how my Reserve Payment is calculated?
What are the key dates I need to be aware of?
The table below shows the key dates for the 1 January 2024 to 31 March 2024 Quarterly Obligation Period following this announcement.
|10 October 2023||Suppliers receive confirmation of share of the Total Reserve Amount|
|29 December 2023||Suppliers ensure sufficient Credit Cover lodged for ILR of £4.355/MWh|
|1 January 2024||ILR of £4.355/MWh applies|
|10 October 2023||Suppliers invoiced their Reserve Amount|
|10 Jan 2024||Suppliers invoiced for the first ILR payment based on £4.355/MWh|
Who do I contact if I have a query?
|EMRS||Interim Levy Rate Notice, Quarterly Supplier Reconciliation Invoice, and Credit Cover||020 7380 4333||[email protected]|
|LCCC||Calculation of the 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]|