Update to Government response on Contracts for Difference Supplier Obligation: Improving Efficiency and Transparency

On Thursday 2 February 2017,, BEIS published an update on technical amendments to the CFD Supplier Obligation (SO) which are designed to reduce costs to consumers through improving the efficiency and transparency of the scheme.

The update outlines the remaining amendments that have been made to the SO following a consultation on proposals that were mostly implemented in 2016. The government response to the consultation signalled the government’s intention to implement the remaining measures in 2017 after necessary changes to the settlement system had been implemented.

The associated regulations have now been laid before Parliament. In addition to implementing further scheme improvements, the regulations will also reduce the level of cash-flow risk for suppliers and the Low Carbon Contracts Company (LCCC).

These amendments are relevant to electricity suppliers in Great Britain, low carbon electricity generators who hold or intend to apply for a CFD, electricity consumers and their representatives, CFD delivery bodies and other stakeholders with an interest in the energy sector.

The impact assessment published in January 2016 includes an analysis of these measures and is available on the legislation.gov.uk website.

For any enquiries, please email CFDSupplierObligationConsultation@decc.gsi.gov.uk.