Response to DESNZ’s consultation on further reforms to the Contracts for Difference (CfD) scheme for Allocation Round 7
The Contracts for Difference (CfD) scheme is the Government’s flagship policy for incentivising new low carbon electricity generating projects in Great Britain. The CfD is also a vital mechanism in securing the renewables deployment necessary to deliver clean power by 2030. In this consultation, the Department for Energy Security & Net Zero (DESNZ) seek views on potential changes to the CfD to support delivery of Clean Power 2030.
We welcome the opportunity to respond to DESNZ’s consultation on the proposed reforms to the CfD scheme for Allocation Round 7 as the statutory consumer advocate for energy consumers in Great Britain. We share our views especially on the suggested extension of the contract length and invite the government to further analyse the potential impact of this change on consumers’ interests, including its effects on the costs of bills and affordability.