Rely on the most comprehensive, up-to-date legal content designed and curated by lawyers for lawyers
Work faster and smarter to improve your drafting productivity without increasing risk
Accelerate the creation and use of high quality and trusted legal documents and forms
Streamline how you manage your legal business with proven tools and processes
Manage risk and compliance in your organisation to reduce your risk profile
Stay up to date and informed with insights from our trusted experts, news and information sources
Access the best content in the industry, effortlessly — confident that your news is trustworthy and up to date.
With over 30 practice areas, we have all bases covered. Find out how we can help
Our trusted tax intelligence solutions, highly-regarded exam training and education materials help guide and tutor Tax professionals
Regulatory, business information and analytics solutions that help professionals make better decisions
A leading provider of software platforms for professional services firms
In-depth analysis, commentary and practical information to help you protect your business
LexisNexis Blogs shed light on topics affecting the legal profession and the issues you're facing
Legal professionals trust us to help navigate change. Find out how we help ensure they exceed expectations
Lex Chat is a LexisNexis current affairs podcast sharing insights on topics for the legal profession
Printer Friendly Version
August 2014 will see the launch of contracts for difference under the Electricity Market Reform programme and the Energy Act 2013. Most of the key regulations in this area have been laid before parliament and now they just need to be made. August
2014 should therefore also be the start of the transition period between the renewables obligation and contracts for difference.
Up until the introduction of contracts for difference, the renewables obligation was the main support mechanism for large scale renewable energy projects in the UK and it works by placing an obligation on licensed electricity suppliers to source an increasing
proportion of electricity from renewable sources. Contracts for difference will take over as the key support mechanism for low carbon energy generation by paying the low carbon electricity generator the difference between the 'strike price' and a
'reference price'. The 'strike price' is the price for electricity reflecting the cost of investing in a particular low carbon technology, while the 'reference price' is the measure of the average market price for electricity in the market.
So, from August 2014 until the 31 March 2017 when the renewables obligation will close for new capacity, there will be a transition period where operators can choose which scheme to join. Operators must make sure they only sign their station up
to one scheme, but there might be circumstances where stations already accredited under the renewables obligation and wishing to add new capacity, can have this new capacity supported under contracts for difference and so become ‘dual scheme
There are some situations which allow for grace periods, in relation to the renewables obligation closure period, of between 12 – 18 months, which may be of interest to those operators wishing to make the most out of the renewables obligation.
Operators wishing to take advantage of the support available under these schemes will need to make sure they start weighing up their options now to ensure they understand their own obligations and get the best support possible.
0330 161 1234