DECC consults on CfD regulations

The Department for Energy and Climate Change is meeting to consult on proposed regulations to review the process by which the Secretary of State can direct the Contracts for Difference Counterparty to offer a Contract for difference.

The EMR will create a new mechanism to provide long-term revenue stabilization. The steps are intended to incentivize investment in low carbon generation: Contracts for Difference. The CfDs aim to ensure low carbon and reliable electricity generation is a desirable opportunity for investment.

In the past, the Government has said the Secretary of State will retain the power to direct the CfD Counterparty Body to entering into bespoke arrangements outside of the generic allocation process.

The consultation is intended to provide uniformity and clarity to investors. It also looks to gain the views of interested parties on the proposed regulations, which will affect the way it is exercised in future.