LCCC Confirms ILR and TRA for Q2 2025

On 22 April 2025, LCCC confirmed an in period adjustment effective from 23 May 2025 to 30 June 2025, the end of the Quarterly Obligation Period as follows:

• Increase the Interim Levy Rate to £11.959/MWh from £9.257/MWh

Suppliers will receive a formal notice to confirm the increase to the Interim Levy Rate (ILR). The Key Payment Figures for 2025/26 are updated and available on the Settlement Data for Suppliers webpage.

LCCC noted the recent consistent decline in power market prices. They have, considered that there is a high degree of likelihood that the current level of the ILR will be insufficient to cover payments to CfD Generators under the CfD scheme. LCCC have confirmed, with increasing the Interim Levy Rate, no change to the Total Reserve Amount (TRA) would ensure enough money would be collected to pay CfD generators.

For further detail LCCC published a news article and for LCCC’s calculations, please refer to their online CfD dashboards.

Due to the adjustment, if a Supplier is required to lodge additional Credit Cover, please ensure you have sufficient Credit Cover lodged by 5:00pm on 22 May 2025.

The first determination was issued on 17 December 2024, LCCC issued a Stakeholder Bulletin to confirm for the Quarterly Obligation Period 1 April 2025 to 30 June 2025 as follows:

• Interim Levy Rate is £9.257/MWh
• Total Reserve Amount is £165,771,306.92

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.

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 and Nuclear RAB Credit Cover provides details on the process for lodging Credit Cover including the Letter of Credit templates (p37-46) 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 22 May 2025

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 9 April 2025 and this will use the reference period as follows (this was based to support the start of the Quarterly Obligation Period):

• 4 March 2025 to 25 March 2025

G5 – Supplier CfD and Nuclear RAB 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?

We have summarised information on the Stakeholder Support – CfD Supplier webpage.

For more detail on Credit Cover please refer to WP42 – Supplier CfD and Nuclear RAB Credit Cover and G5 – Supplier CfD and Nuclear RAB 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 January 2024.

The Reserve Payment is part of the subsequent Quarterly Reconciliation within the Quarterly Obligation Period and invoiced on the 9 April 2025.

Where can I locate information on how my Reserve Payment is calculated?

G3 – CfD and Nuclear RAB Reserve Payment provides information on how Suppliers Reserve Payment is calculated. Further information is available on the Stakeholder Support – CfD Supplier webpage.

What are the key dates I need to be aware of?

The table below shows the key dates for the 1 April 2025 to 30 June 2025 Quarterly Obligation Period following this announcement.