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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

Current rate
0.00200p/kWh
FY2024+11.1% vs FY2023
Forecast
0.00200p/kWh
2025-26 · high confidence0.0%
Share of bill
0.1 to 0.3%
Of a typical UK business bill
Set by
LCCC, quarterly Interim Levy Rate (ILR)
Applies to UK business electricity

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 yearRateYoY changeSource
FY20200.00220p/kWh-published
FY20210.00210p/kWh-4.5%published
FY20220.00190p/kWh-9.5%published
FY20230.00180p/kWh-5.3%published
FY20240.00200p/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.

YearP10P50P90ConfidenceRationale
2025-260.001900.002000.00210highBased on LCCC charging statements and current operational cost trends
2025-0.00200--
2026-270.002000.002100.00220highPublished LCCC determination with established methodology
2026-0.00210--
2027-280.002100.002200.00240highAR6 construction phase with predictable administrative costs
2027-0.00210--
2028-290.002200.002300.00250medPeak AR6 activity with some demand uncertainty
2028-0.00220--
2029-300.002200.002400.00270medOperational complexity increases with technology diversity
2029-0.00220--
2030-310.002300.002500.00320med26% scenario spread reflects allocation round uncertainty
2030-0.00230--
2031-320.002200.002600.00380lowPolicy uncertainty beyond 2030 creates wide forecast range
2031-0.00235--
2032-330.002300.002700.00420lowPotential scheme restructuring adds significant uncertainty
2032-0.00239--
2033-340.002400.002900.00480lowMature renewable market role unclear for CfD scheme
2033-0.00244--
2034-350.002500.003000.00540lowExtrapolation 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

Related charges in Auto-generated

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.