The following Energy practice note provides comprehensive and up to date legal information covering:
The Electricity Market Reform (EMR) programme was developed by government to make changes to the Great Britain electricity system, in order to promote investment in secure and affordable low carbon energy. This was necessary due to pressure on the existing fossil fuel dependent system and because the focus is shifting to a cleaner and more diverse mix of energy generation (including renewables, nuclear and carbon capture and storage).
The key EMR mechanism in respect of encouraging low carbon generation is the contracts for difference (CfD) mechanism. CfDs provide long-term price stabilisation to low carbon plants, enabling investment to come forward at lower capital costs, which means lower costs for consumers.
A CfD is a private law contract between a low carbon electricity generator and the Low Carbon Contracts Company (LCCC). The LCCC is a government owned company (often referred to as the ‘CfD Counterparty’).
The electricity generator party to the CfD is paid the difference between the 'strike price' and the '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. When payment flows are reversed and the reference price is higher than the strike price, generators make payments to the LCCC.
For more information, see Practice Notes: Contracts for Difference
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
What is a res judicata?A res judicata is a decision given by a judge or tribunal with jurisdiction over the cause of action and the parties, which disposes, with finality, of a matter decided so that it cannot be re-litigated by those bound by the judgment, except on appeal.Final judgments by
Coronavirus (COVID-19): The guidance detailing normal practice set out in this Practice Note may be affected by measures concerning process and procedure in the civil courts that have been introduced as a result of the coronavirus (COVID-19) pandemic. For guidance, see Practice Note: Coronavirus
A declaratory judgment is a judgment identifying the rights, duties or obligations of one or more parties in a dispute. It is legally binding, but does not order any action by a party. A court may issue it alone or in conjunction with some other relief such as an injunction and can be granted on an
IntroductionShari'ah (also Sharia, Shariah or Shari’a) (literally, in Arabic, 'the path towards the watering place') or Islamic law is the legal system of the religion of Islam that sets out a system of duties or code of conduct for individuals to follow so that they may live their life in a
0330 161 1234
To view our latest legal guidance content,sign-in to Lexis®PSL or register for a free trial.