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ARTICLE · 27 JANUARY 2023

Consultation Open For Future Contract For Difference Allocation Rounds

Herbert Smith Freehills Kramer LLP
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In December 2022, the Department for Business, Energy & Industrial Strategy (BEIS) initiated a consultation regarding the considerations for future Contracts for Difference (CfD) rounds.

United KingdomEnergy and Natural Resources
Silke Goldberg
Silke Goldberg
Sarah Pollock
Sarah Pollock

In December 2022, the Department for Business, Energy & Industrial Strategy (BEIS) initiated a consultation regarding the considerations for future Contracts for Difference (CfD) rounds.

This consultation is aimed at seeking feedback to the potential changes that may be made to the upcoming allocation round (AR6) due to open in 2024, as well as providing policy updates. The consultation closes on 7 February 2023.

What is a Contract for Difference?

A CfD is a contract between a low carbon electricity generator and the Low Carbon Contracts Company (LCCC), a BEIS owned private company. Despite one party being a government owned entity, the contract is governed by private law.

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