CfD Stakeholder Bulletin — 19 December 2022
Summary
DESNZ opened a consultation on proposed changes to CfD Standard Terms and Conditions for Allocation Round 5, covering six areas of contract adjustments. Changes include clarifying generator flexibility on start date delays, simplifying data requirements, updating Private Network Agreement definitions, revising interest rate calculations post-Brexit, removing BSUoS charge clauses following Ofgem's decision to stop levying these on generators, and adding supply chain plan requirements for floating offshore wind. The consultation closes 5 February 2023.
Why it matters
These are routine contract housekeeping adjustments rather than structural reforms to the CfD scheme. The BSUoS removal reflects cost allocation moving away from generators, while supply chain requirements for floating offshore wind add compliance burden without changing the fundamental CfD mechanism.
Key facts
- •Consultation closes 5 February 2023
- •BSUoS charges removed from CfD contracts following Ofgem decision
- •New supply chain plan requirements for floating offshore wind projects
- •Interest rate calculations updated post-Brexit
- •Six contract adjustment areas covered
Timeline
Areas affected
Related programmes
Memo
Contracts for Difference: Stakeholder Bulletin 19 December 2022 Consultation on proposed changes to the CfD contracts for Allocation Round 5. The government has today opened a consultation seeking views on proposed changes to the Contracts for Difference (CfD) scheme Standard Terms and Conditions and Private Network Agreement for Allocation Round 5. The consultation covers changes to: • Clarify how the flexibility in the contract for generators to delay their CfD start date should (and should not) be used; • Simplify data provision requirements for generators; • Update definitions in the CFD Private Network Agreement to ensure they align fully with regulations; • Update interest rate calculations for repaying cumulated subsidy following the UK’s exit from the EU; • Remove BSUoS (Balancing Services Use of System) charge clauses, reflecting Ofgem’s decision that these charges will no longer be levied on generators; • Reflect new supply chain plan requirements for floating offshore wind projects The consultation will close on 5 February 2023. Further information and details of how to respond can be found on the CfD microsite. UK General Data Protection Regulation This stakeholder bulletin is being circulated to people who have opted in to the Contracts for Difference stakeholder contact list. We issue these stakeholder bulletins as a convenience to interested parties, however it is not in any way essential to be on this list to participate in major consultations or allocation rounds. Purpose & scope of this list: This list is managed by the Department for Business, Energy and Industrial Strategy (BEIS) (and any successor departments) and will be used to inform interested parties of policy developments relevant to the Contracts for Difference scheme for renewable energy projects (and any direct successor schemes). It is not used for any other purposes. To be removed from the circulation list: Please send a blank e-mail with the subject ‘opt out’ (if the receiving e-mail you use is different to the one you send the e-mail from, include that e-mail address in the subject of the e-mail) to BEISContractsForDifference@beis.gov.uk. If you have received this indirectly and want to be added to this list: Send a blank e-mail with the subject line ‘opt in’ to BEISContractsForDifference@beis.gov.uk. You can withdraw your consent to opt in at any time. We will normally keep your address on this list until you: a) withdraw your consent to opt in, b) the scheme closes without any successor, c) we receive reports your email address is no longer operational, or d) you do not respond to a periodic request from us to reconfirm your desire to opt in.