It was established to be the Contracts for Difference (CfD) counterparty under the CfD regulations and the entity with whom successful generators sign a contract after the auction process (which is administered by National Grid (ESO).
What is the LCCC's role in the allocation round?
During the time leading up to the allocation round, the LCCC can be expected to host engagement events to help and advise stakeholders on the details of the contract and the generator obligations.
At the outset of an allocation round, the LCCC is responsible for processing requests from participants for ‘minor and necessary’ modifications to the standard terms of the contract issued by BEIS.
The LCCC receives the results of the auction when the winning bidders are notified. It then sets out the process (as defined in the regulations) that the successful bidders will need to follow to achieve a signed contract.
The main function of the LCCC starts once the contracts are signed. During the project delivery phase, the LCCC works with generators to take them through the various milestones that have to be met before the start date of a project, after which point CfD payments begin to be made. CfD payments are determined and paid by the LCCC for the duration of the contract term with generators.
Finally, given its unique relationship with generators, the LCCC provides trusted advice to BEIS on the performance, development and potential evolution of the CfD scheme.