Consultation outcome: Contracts for Difference: proposed changes to the Electricity Supplier Obligation Regulations in response to COVID-19

In response to the exceptional circumstances of COVID-19, BEIS will provide a one-off loan to the Low Carbon Contracts Company (LCCC) so that it can continue to pay Contracts for Difference (CfD) generators without needing to increase the Interim Levy Rate at short notice.

This consultation seeks views on the proposal to defer to 2021 quarter 1 part of the amount of the increase in electricity suppliers’ obligations that would otherwise be collected by LCCC in July for the current (second) quarter of 2020.

Implementation of this proposal would require changes to the Contracts for Difference (Electricity Supplier Obligation) Regulations 2014.

If we don’t proceed with this proposal, we will still provide the loan facility to LCCC. Suppliers’ obligations for CfD payments in 2020 quarter 2 would remain unchanged, so they would have to pay a higher lump sum to LCCC following the reconciliation process in July.

Online stakeholder event, Friday 15 May

We will host an online consultation event at 10am on Friday 15 May to explain the proposals and answer any questions.

If you would like to register, please email

Please do not send responses by post to the department during the coronavirus lockdown period as we will not be able to access them.