UK Non-Commodity Charge · Auto-generated
CfD Operational Levy
Current rates, who sets them, and where they are forecast to go.
What CfD Operational Levyis, who sets the rate, what the revenue funds, and where it's heading. Sourced daily from the Purely Energy non-commodity cost data hub.
Roughly 0.1 to 0.3% of a typical UK business electricity bill
CfD Operational Levy: what it is, who charges it, and what it pays for
What it is
The CfD Operational Levy charge in plain English
The government’s main mechanism for building new wind farms and solar. Generators get a guaranteed strike price; consumers pay the gap vs wholesale prices. Quarterly levy.
Introduced 2014 (Energy Act 2013). Rising fast as more offshore wind comes online.
Who charges it
The body that sets the rate
LCCC, quarterly Interim Levy Rate (ILR)
Unit
p/kWh
Applies to
UK business electricity
What it pays for
Where the revenue ends up
New offshore wind, solar farms, nuclear (Hinkley Point C)
Share of typical bill
0.1 to 0.3%
LCCC's published CfD operational cost levies sit at 0.1 to 0.3% of a non-domestic electricity bill, used to fund the running of the scheme.
Published rate history
| Financial year | Rate | YoY change | Source |
|---|---|---|---|
| FY2020 | 0.00220p/kWh | - | published |
| FY2021 | 0.00210p/kWh | -4.5% | published |
| FY2022 | 0.00190p/kWh | -9.5% | published |
| FY2023 | 0.00180p/kWh | -5.3% | published |
| FY2024 | 0.00200p/kWh | +11.1% | published |
Forecast trajectory
AI-assisted forecasts from our deep-research pipeline. P10, P50 and P90 are the 10th, 50th and 90th percentile outcomes; P50 is the central estimate.
| Year | P10 | P50 | P90 | Confidence | Rationale |
|---|---|---|---|---|---|
| 2025-26 | 0.00190 | 0.00200 | 0.00210 | high | Based on LCCC charging statements and current operational cost trends |
| 2025 | - | 0.00200 | - | - | |
| 2026-27 | 0.00200 | 0.00210 | 0.00220 | high | Published LCCC determination with established methodology |
| 2026 | - | 0.00210 | - | - | |
| 2027-28 | 0.00210 | 0.00220 | 0.00240 | high | AR6 construction phase with predictable administrative costs |
| 2027 | - | 0.00210 | - | - | |
| 2028-29 | 0.00220 | 0.00230 | 0.00250 | med | Peak AR6 activity with some demand uncertainty |
| 2028 | - | 0.00220 | - | - | |
| 2029-30 | 0.00220 | 0.00240 | 0.00270 | med | Operational complexity increases with technology diversity |
| 2029 | - | 0.00220 | - | - | |
| 2030-31 | 0.00230 | 0.00250 | 0.00320 | med | 26% scenario spread reflects allocation round uncertainty |
| 2030 | - | 0.00230 | - | - | |
| 2031-32 | 0.00220 | 0.00260 | 0.00380 | low | Policy uncertainty beyond 2030 creates wide forecast range |
| 2031 | - | 0.00235 | - | - | |
| 2032-33 | 0.00230 | 0.00270 | 0.00420 | low | Potential scheme restructuring adds significant uncertainty |
| 2032 | - | 0.00239 | - | - | |
| 2033-34 | 0.00240 | 0.00290 | 0.00480 | low | Mature renewable market role unclear for CfD scheme |
| 2033 | - | 0.00244 | - | - | |
| 2034-35 | 0.00250 | 0.00300 | 0.00540 | low | Extrapolation assumes no fundamental policy changes |
| 2034 | - | 0.00249 | - | - |
CfD Operational Levy FAQs
What is the CfD Operational Levy charge?
The government’s main mechanism for building new wind farms and solar. Generators get a guaranteed strike price; consumers pay the gap vs wholesale prices. Quarterly levy.
Who sets the CfD Operational Levy rate?
The CfD Operational Levy rate is set by LCCC, quarterly Interim Levy Rate (ILR).
What does CfD Operational Levy pay for?
CfD Operational Levy revenue supports New offshore wind, solar farms, nuclear (Hinkley Point C).
What is the current CfD Operational Levy rate?
For financial year 2024, the published CfD Operational Levy rate is 0.00200 p/kWh.
What is the CfD Operational Levy forecast?
Our latest forecast for 2025-26 is 0.00200 p/kWh (high confidence). Based on LCCC charging statements and current operational cost trends
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Rate data sourced from the Purely Energy non-commodity cost data hub (dh.purelyenergy.co.uk). Published rates come from statutory publications by the body listed above. Forecasts are AI-generated from published guidance and market trends; treat P50 as a central estimate and reference P10/P90 for sensitivity.