Contracts: Payments

(asked on 13th January 2021) - View Source

Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, whether it is permissible under the Contracts for Difference regime for top-up payments to be made to third parties outside the UK.


Answered by
Anne-Marie Trevelyan Portrait
Anne-Marie Trevelyan
Minister of State (Foreign, Commonwealth and Development Office)
This question was answered on 19th January 2021

The Low Carbon Contracts Company (LCCC) pays electricity generators that have signed a Contract for Difference (CfD) a flat, indexed, rate for the electricity that they produce over a 15-year period. The amount paid is the difference between the ‘strike price’ (a price for electricity, typically determined during a competitive auction process) and the ‘reference price’ (a measure of the average market price for electricity in the GB electricity market).

The CfD standard terms and conditions set out that payments to the generator will be made to the UK based account to which the generator notifies the CfD Counterparty they want the payment to be made.

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