1. Home
  2. Frequently Asked Questions

Frequently Asked Questions

Below you’ll find answers to the most frequently asked questions about the Contracts for Difference scheme

You may also wish to consult the Q&A from the ‘Introduction to Allocation Round 6’ online event held on 22.2.24.

If you don’t find what you’re looking for, please contact us.

windfarm3
Filter by
Fulltext search
Clear
Has the current economic environment been taken into account when setting Administrative Strike Prices for Allocation Round 6?
Open

Administrative Strike Prices (ASPs) have been set based on independent evidence on generation costs. Considering recent market volatility, and following industry engagement, we undertook a detailed analysis of our cost assumptions and have made revisions to ensure the current macroeconomic environment is reflected in ASPs. 

The CfD scheme also provides generators with protection from inflation in the contract by indexing the strike price to the Consumer Price Index. This is an important protection for developers and remains one of the most generous indexation schemes when compared against other countries.

Last updated: 03 Jan 2025

Disclaimer

These frequently asked questions and responses (“FAQs”) will be prepared by the relevant delivery partners1 in response to queries raised by stakeholders in relation to allocation rounds of the Contract for Difference (“CFD”) scheme.  

These FAQs are subject to and are provided on the basis of the following: 

Defined terms used in the FAQs but not defined therein have the meanings prescribed to them in the relevant regulations, the CFD (agreement and standard terms) and the Energy Act 2013. 

Please note that the primary source and most reliable source of information are the regulations, allocation framework and statutory notices. These will be available on the gov.uk website and linked here in the ‘Publications’ section, as they are published. 

  1. Department for Energy Security and Net Zero, Low Carbon Contracts Company Ltd ("LCCC"), National Grid Electricity System Operator (“NG ESO”) and Ofgem.