On 29 September 2021, LCCC issued a Stakeholder Bulletin to announce the following:
Quarterly Obligation Period 1 October 2021 to 31 December 2021
- Adjusted Interim Levy Rate is £0.000/MWh
Quarterly Obligation Period 1 January 2022 to 31 March 2022
- Interim Levy Rate is £1.908/MWh
- Total Reserve Amount is £303,432,348.09
We have issued notices to Suppliers to confirm the above changes and published supporting information available in the News section. The Key Payment Figures 2021/22 reflect these changes and located on the Settlement Data for Suppliers webpage.
Updates focused on the Quarterly Obligation Period 1 October 2021 to 31 December 2021
LCCC have made the decision to reduce the Interim Levy Rate to £0.000/MWh. LCCC will be monitoring market prices closely during the quarter and will make appropriate decisions to ensure payments are covered via the Total Reserve Amount and the Interim Levy Rate. Further details are available in the LCCC Stakeholder Bulletin.
How does this affect my Interim Rate payments ?
Invoices issued from 12 October 2021 will use the adjusted Interim Levy Rate £0.000/MWh for the Quarterly Obligation Period 1 October 2021 to 31 December 2021.
How does this affect my Credit Cover requirement?
From 1 October 2021, 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.
Updates focused on the Quarterly Obligation Period 1 January 2022 to 31 March 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 Quarter Obligation Period. We will support LCCC in keeping Suppliers informed.
What are the key dates I need to be aware of?
The table below shows the key dates for the 1 January 2022 to 31 March 2022 Quarterly Obligation Period:
|11 October 2021||Suppliers Reserve Payment Notice issued|
|31 December 2021||Suppliers to ensure their Credit Cover lodged is sufficient for ILR of £1.908/MWh from 1 January 2022 to 31 March 2022|
|1 January 2022||ILR of £1.908/MWh applies from 1 January 2022|
|12 January 2022||Suppliers to be invoiced for the first Interim Rate payment based on £1.908/MWh|
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.
What are my requirements against Interim Rate payments and Credit Cover?
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 Suppliers need to lodge additional Credit Cover or reduce Credit Cover the process is detailed in WP42 – Supplier CFD Credit Cover and G5 – Supplier CFD Credit Cover.
How is my Credit Cover requirement 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 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 on 31 December 2021.
Where can I locate information on how my Reserve Payment is calculated?
G3 – CfD Reserve Payment provides information on how the Reserve Payments are calculated.
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||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]|