The government has today opened a consultation seeking views on further drafting changes to the Contracts for Difference (CfD) Standard Terms and Conditions.

The proposed changes will apply to the Standard Terms and Conditions for the fourth CfD allocation round (AR4), which is planned to open to applications on 13 December 2021.

Previous changes to the CfD contract ahead of AR4 were confirmed in a government consultation response in May 2021.

The proposed changes in this latest consultation aim to:

  • ensure that the contract continues to function as intended by reflecting the UK’s position in a number of specific areas relevant to the CfD scheme following the UK’s exit from the EU

  • (subject to a final decision by Ofgem on whether and when to remove Balancing Services Use of System Charges from generators) disapply the annual CfD strike price adjustment for changes to balancing system charges in respect of relevant AR4 CfD generators

  • allow generators who are awarded contracts in AR4 more time to fulfil their Initial Conditions Precedent following contract signature, to reflect the larger number of applicants expected to apply to participate in the forthcoming allocation round.

It is envisaged that the consultation will be of particular interest to those considering participating in AR4.

Further information and details of how to respond can be found on the consultation’s dedicated GOV.UK page.

The consultation will close on 31 October 2021.