The Low Carbon Contracts Company (LCCC) is an operationally independent, not-for-profit private company wholly owned by the Secretary of State for Business, Energy and Industrial Strategy (BEIS). The company carries out two key roles that are central to the delivery of the Government’s objective to “ensure the UK has a reliable, low cost and clean energy system”:
- Counterparty to Contracts for Difference (CfDs), responsible for managing agreements with low-carbon electricity generators under the CfD scheme, forecasting and collecting the Supplier Obligation Levy that funds CfD payments, and settling and clearing the CfDs3 ;
- Capacity Market Settlement Body, responsible for managing all financial transactions and associated assurances under the Capacity Market scheme, such as: credit cover; meter assurance; penalties; and payments to Capacity Providers. LCCC delivers these functions on behalf of its sister company, the Electricity
In October 2021, LCCC was confirmed by the Government as the scheme counterparty to the Dispatchable Power Agreement (DPA) for Carbon Capture, Use and Storage (CCUS). Also, on 31 March 2022, LCCC was confirmed4 as the revenue collection counterparty for the nuclear Regulated Asset Base (RAB) funding model. LCCC also anticipates being confirmed by BEIS as the scheme counterparty for Industrial Carbon Capture (ICC) in the near future.