Consultation seeking views on the proposed 2016/17 operational cost budgets and resulting levies for the Low Carbon Contracts Company and the Electricity Settlements Company
These two Government-owned companies manage key mechanisms of the Government’s Electricity Market Reform.
The Low Carbon Contracts Company manages and makes payments under Contracts for Difference to incentivise investment in low carbon technologies. The Electricity Settlements Company is responsible for transactions relating to the Capacity Market, including making capacity payments to capacity providers, controlling collateral and managing auction bid bonds.
The operational costs of the companies are recovered through levies on electricity suppliers, as set out in legislation. Following the outcome of the consultation, the operational cost levy rates for 2016/17 will be reflected in secondary legislation, which is intended to be laid in Parliament in early 2016, to come into force (subject to the will of Parliament) before 1 April 2016.
The consultation closes on 3 December 2015.