This consultation is seeking views on the proposed 2016/17 operational cost budgets and resulting levies for the Low Carbon Contracts Company (LCCC) and the Electricity Settlements Company (ESC). The operational cost levies of LCCC and ESC are set out in legislation and, in line with the requirements of the Energy Act 2013, DECC are consulting before making any regulations to amend the levies for 2016/17. The levies proposed for 2016/17 are based on estimated operating costs of £14.216m for LCCC and £4.474m for ESC.
Levy payments are made by suppliers to cover this and the cost is passed through to the customer either as a separate charge on the electricity bill or is incorporated into the unit rate. The total impact of LCCC and ESC costs on in 2016/17 will equate to around a 0.05% increase in average electricity bills.
We are feeding back on this consultation and would welcome your comments on whether you believe that this is an acceptable increase in the current climate. The deadline for comments is 3rd December 2015 and results will be published early in 2016. Email compliance@carbon2018.com or register to post your comments on the website.