Herbert Smith Freehills (HSF) has confirmed that the LCAM-HSF survey on costs in mediation in arbitration deadline for responses has been extended until 6 September 2024. The extension will enable those keen to provide responses the opportunity to do so over the course of the summer break and early September.

Articles 9.1 and 10 grant the LCAM Board the power to determine that LCAM manifestly lacks jurisdiction over the dispute and subsequently to dismiss a case, in whole or in part. Article 19.3 of the LCAM Rules confirms that an arbitral tribunal (also) has the power to rule on its own jurisdiction. As such, it is open to a party to approach the LCAM Board to have the case dismissed on jurisdictional grounds, without having to incur the time and cost of appointing an Arbitral Tribunal. The LCAM Board will only exercise its power to rule on the alleged ‘manifest lack of jurisdiction’ prior to the referral of the case to the Arbitral Tribunal pursuant to Article 18. Thereafter, it is expected that all decisions on lack of jurisdiction ought to be heard by the Arbitral Tribunal. Although it may appear to be more efficient to seek to ask the LCAM Board to rule on and subsequently dismiss a claim for lack of jurisdiction at the very outset, the grounds

Procedure for appointment of the Arbitral Tribunal The Arbitral Tribunal’s appointment process begins once the LCAM Board receives the Respondent’s Answer and, if required, any further information requested by the LCAM Board under Article 5. Article 13.2 of the LCAM Rules acknowledges that the parties may agree on any procedure for the appointment of the Arbitral Tribunal. However, in circumstances where the parties have not agreed on the number of arbitrator(s) or their identity within the time limit stipulated by the parties, then, the LCAM Rules provide for the selection of an arbitrator, as outlined below. The appointment of all arbitrators under LCAM arbitrations, whether made by the parties or the LCAM Board, will be subject to the LCAM Board’s confirmation (Article 13.1), following the receipt of the arbitrator’s statement of impartiality. This confirmation is at the LCAM Board's absolute discretion and the parties may not derogate from this provision. Number of arbitrators Under the LCAM Rules, where the parties have not agreed on

Duty of impartiality and independence Every member of the Arbitral Tribunal must be impartial and independent of the parties (Article 14.1). In general, the Arbitral Tribunal may conduct an arbitration in such manner as it considers appropriate, subject to the LCAM Rules and any agreement between the parties (Article 19.1). However, this is subject to the requirement to conduct the arbitration in an impartial, practical and expeditious manner, giving each party an equal and reasonable opportunity to present its case (Article 19.2). The phrase ‘impartial, practical and expeditious’ is not reflected in the rules of other well established arbitral institutions but it does not depart substantively from the requirements of fairness, efficiency and expeditiousness, reflected elsewhere. Statement of impartiality Before being appointed as an arbitrator, each prospective member of the Arbitral Tribunal must sign a declaration of impartiality and independence and disclose any circumstances which may give rise to justifiable doubts as to their impartiality or independence in the eyes of the parties. If the person

Awards Article 36 sets out the general rules in respect of powers to make awards and decisions. Decision making Where the Arbitral Tribunal is comprised of a panel of three or more arbitrators, awards or other decisions from the Arbitral Tribunal shall be made by a majority (Article 36.1). Under Article 36.2, the Arbitral Tribunal may agree to grant the Chairperson the right to make procedural rulings on their own. Such an agreement should be communicated to the parties, commonly in the form of a procedural order. Practicalities of making awards Article 37 concerns the practicalities of rendering awards: • the Arbitral Tribunal is generally required to make its award in writing unless agreed otherwise (Article 37.1) • the Arbitral Tribunal has the power to order compound/simple interest to be paid and to determine the applicable rate, period and basis for the calculation (Article 37.1) • awards need to state the date of the award and the seat of the arbitration (Article 37.2 and 20)

Procedural directions and timetable The LCAM Secretariat refers a case to the Arbitration Tribunal, once the LCAM Board has confirmed the appointment (see Article 18.1). The LCAM Rules accord the Arbitral Tribunal a wide discretion as to how it may conduct the procedure of the arbitration. Articles 19.1 and 19.2 state that, subject to the LCAM Rules and any agreement between the parties, the Arbitral Tribunal may conduct the arbitration in such manner as it considers appropriate provided that the Arbitral Tribunal acts impartially, practically and expeditiously, while giving each party an equal and reasonable opportunity to present its case. However, there are a few salient aspects of the LCAM Rules, which an Arbitral Tribunal and the parties ought to consider. Timeframes Article 24 states that, after the referral of the case to the Arbitral Tribunal, the Arbitral Tribunal shall promptly consult with parties with a view to establishing a ‘provisional’ timetable for the conduct of the arbitration and thereafter send a copy of the timetable to the parties and

• The ‘Costs of the Arbitration’ of an arbitration under the LCAM Rules consist of three components: ◦ the fees of the Arbitral Tribunal ◦ the Administrative Fee (which includes the Registration Fee), and ◦ the expenses of the Arbitral Tribunal and LCAM (Article 44.1) • the amount of each of these is set out in Schedule of Costs at Appendix II Registration Fee LCAM’s Registration Fee is £1,500, in accordance with Appendix II, Article 1 of the Rules. The Registration Fee is credited to the Advance on Costs that must be paid by the Claimant under Article 46 of the Rules. If the Registration Fee is not paid upon filing the Request for Arbitration, the Secretariat will set a time period within which the Claimant must pay it. If the Registration Fee is not paid within this time period, the Secretariat will dismiss the Request for Arbitration. Where the Registration Fee has not cleared, the arbitration will not be deemed to

Consolidation and Joinder The LCAM Rules take a more conservative (and straightforward) approach to joinder and consolidation in comparison with the wider powers granted under some of the other arbitral institutions’ rules. Consolidation Article 11.1 provides that if two or more arbitrations are commenced concerning a legal relationship between the same parties, the LCAM Board may, at the request of a party, decide to consolidate the arbitrations. Such decision may only be made after consulting the parties and the Arbitral Tribunal(s) (if any have been constituted). Although Article 11.1 of the LCAM Rules does not set out the grounds upon which a party might seek consolidation of two or more arbitration, the policies

Pre-commencement of an arbitration under the LCAM Rules Mediation Article 6 of the 2022 LCAM Rules encourages, but does not compel, parties to attempt in good faith to resolve the dispute through mediation either before or following the commencement of arbitration proceedings. LCAM has published a model Arb-Med-Arb clause to complement this provision. Both the LCAM Rules and the model clause refer to the LCAM’s Model Mediation Procedure under which a mediation may be administered. Although the 2022 LCAM Rules have not made it compulsory for parties to attempt mediation before proceeding to arbitration, the express reference in the LCAM Rules may encourage parties to consider mediation as an option. If mediation fails, the parties may nevertheless continue with the arbitration proceedings. Contractual pre-requisites to arbitration Parties ought to carefully consider and comply with contractual pre-requisites to arbitration. This may include the obligation to provide notice or the obligation to enter into negotiations or discussions prior to the commencement of an arbitration. Although

The Low Carbon Contracts Company (LCCC) has adjusted the Interim Levy Rate (ILR) for Q3 and Q4 2026 due to elevated market prices, while keeping the Total Reserve Amount (TRA) unchanged. From 17 August 2026 to 30 September 2026, the Q3 ILR will be £2.068/MWh and the TRA £178.35 million, while for Q4, from 1 October 2026 to 31 December 2026, the ILR will be £5.529/MWh and the TRA £425.76 million. The calculations used closing mid-market prices from 2 August 2026. LCCC will continue to monitor prices and may adjust the ILR or TRA to prevent over-collection or ensure sufficient funds to cover Contracts for Difference costs.

The Low Carbon Contracts Company (LCCC) has clarified that where the National Energy System Operator’s (NESO) Grid Connection Reform programme causes a delay to a project, the event is capable of constituting a grid delay for the purposes of a Contracts for Difference (CfD) contract. LCCC states that generators may apply for extensions to contractual dates affected by the reform programme where they can demonstrate that CfD tasks required to be completed by the relevant contract date cannot be completed due to the impact of the reform. Any application for contractual relief must satisfy all relevant contractual requirements, including the requirement for the generator and its representatives to use reasonable endeavours to mitigate the effects of the delay.

The London Circuit Commercial Court (LCCC) has issued guidance on the process to be adopted for the lodging of bundles and skeleton arguments for applications, to prevent late filing of materials from disrupting and delaying the application process. Going forward, strict adherence to the Commercial Court Guide, paragraph 6.3 (dealing with application bundles, the Case Management Bundle and skeletons) and Appendix C of the Commercial Court Guide (dealing with preparation of bundles) is required. Where timings are not complied with, the application will be removed from the list and refixed at an available date convenient for the court and/or a cost sanction imposed. Parties are also not permitted to lodge revised bundles outside these time limits, with the exception of supplemental bundles containing documents that have already been served or supplied, or where the need for them has become apparent after the expiry of the time limit.