Low Carbon Contracts Company and Electricity Settlements Company Operational Costs 2026/27, 2027/28 and 2028/29

Summary

DESNZ consults on operational cost budgets for LCCC and ESC covering 2026/27 to 2028/29, with resulting levy rates to be applied to electricity suppliers. The consultation seeks views on administrative costs for running CfD and capacity market settlement functions. Costs are recovered through levies on licensed electricity suppliers who pass them to consumers.

Why it matters

Parameter adjustment of administrative overhead rather than structural reform. Suppliers will socialise these costs across all consumers regardless of whether they benefit from CfD or capacity market schemes, creating the usual cross-subsidy from those who use less subsidised generation to those who use more.

Key facts

• •Covers three financial years: 2026/27, 2027/28, 2028/29
• •Applies to both LCCC and ESC operational costs
• •Costs recovered via levy rates on suppliers

Timeline

Areas affected

Related programmes