UK non-commodity charge · Renewables and capacity · Electricity
CfD operational costs levy
Latest published rate, who sets it, and where it is forecast to go.
What CfD operational costs levy is, who sets the rate, what the revenue funds and where it is heading. Rates come from the Purely Energy non-commodity cost data hub; forecasts are our own.
Roughly 0.1 to 0.3% of a typical UK business electricity bill
CfD operational costs levy: what it is, who charges it, and what it pays for
What it is
The CfD operational costs levy charge in plain English
Small admin charge covering LCCC’s costs of running the CfD scheme. Tiny compared to the main Supplier Obligation.
Introduced 2014 (Energy Act 2013).
Who charges it
The body that sets the rate
LCCC
Unit
p/kWh
Applies to
All electricity supplies
What it pays for
Where the revenue ends up
LCCC operational and administrative costs
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, funding the running of the scheme.
Published rate history
| Financial year | Rate | Year on year | Source |
|---|---|---|---|
| 2020/21 | 0.00220p/kWh | - | Published |
| 2021/22 | 0.00210p/kWh | -4.5% | Published |
| 2022/23 | 0.00190p/kWh | -9.5% | Published |
| 2023/24 | 0.00180p/kWh | -5.3% | Published |
| 2024/25 | 0.0109p/kWh | +505.0% | SI 2022/401 reg 2, CfD operational costs levy £0.1089/MWh from 1 Apr 2024 |
| 2025/26 | 0.0109p/kWh | 0.0% | SI 2026/359 (restating £0.1089/MWh for 2025/26) |
| 2026/27 | 0.0146p/kWh | +34.3% | SI 2026/359, CfD operational costs levy £0.1463/MWh from 1 Apr 2026 |
CfD operational costs levy FAQs
What is the CfD operational costs levy charge?
Small admin charge covering LCCC’s costs of running the CfD scheme. Tiny compared to the main Supplier Obligation.
Who sets the CfD operational costs levy rate?
The CfD operational costs levy rate is set by LCCC.
What does CfD operational costs levy pay for?
CfD operational costs levy revenue supports LCCC operational and administrative costs.
What is the latest published CfD operational costs levy rate?
For 2026/27, the published CfD operational costs levy rate is 0.0146 p/kWh.
Related charges in Renewables and capacity
Calculate your CfD operational costs levy exposure
Enter an MPAN or postcode plus kWh/kVA to see CfD operational costs levy alongside every other non-commodity line item for this year and next.
Flexible contracts and pass-through costs
How we manage non-commodity exposure for I&C buyers who need to stress-test contract decisions.
All UK energy charges
Browse every non-commodity charge with the latest published rates and forecast trajectory.
Rate data 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 modelled from published guidance and market trends, so treat P50 as a central estimate and use P10/P90 for sensitivity. Primary source