UK Non-Commodity Charge · Auto-generated
CfD Supplier Obligation
Current rates, who sets them, and where they are forecast to go.
What CfD Supplier Obligationis, 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 3 to 6% of a typical UK business electricity bill
CfD Supplier Obligation: what it is, who charges it, and what it pays for
What it is
The CfD Supplier Obligation 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
3 to 6%
LCCC quarterly Interim Levy Rate determines the CfD Supplier Obligation. Recent quarters have placed it at 3 to 6% of a non-domestic electricity bill.
Published rate history
| Financial year | Rate | YoY change | Source |
|---|---|---|---|
| FY2020 | 0.3820p/kWh | - | published |
| FY2021 | 0.1660p/kWh | -56.5% | published |
| FY2022 | -0.0560p/kWh | -133.7% | published |
| FY2023 | 0.2500p/kWh | -546.4% | published |
| FY2024 | 0.5500p/kWh | +120.0% | published |
| FY2025 | 0.8460p/kWh | +53.8% | 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 | 0.7000 | 0.8460 | 1.000 | high | Based on LCCC published rates with minimal uncertainty |
| 2026-27 | 1.000 | 1.220 | 1.500 | high | AR6 projects commissioning with known strike prices |
| 2026 | - | 1.044 | - | - | |
| 2027-28 | 1.200 | 1.530 | 1.900 | med | Remaining AR6 capacity with wholesale price uncertainty |
| 2027 | - | 1.200 | - | - | |
| 2028-29 | 1.300 | 1.740 | 2.200 | med | AR7 assumptions with moderate wholesale price risk |
| 2028 | - | 1.350 | - | - | |
| 2029-30 | 1.100 | 1.710 | 2.400 | med | Pipeline completion with policy uncertainty emerging |
| 2029 | - | 1.300 | - | - | |
| 2030-31 | 0.9000 | 1.600 | 2.500 | low | High uncertainty on post-2030 allocation rounds |
| 2030 | - | 1.200 | - | - | |
| 2031-32 | 0.6000 | 1.200 | 2.100 | low | Highly uncertain due to unknown regulatory changes |
| 2031 | - | 1.071 | - | - | |
| 2032-33 | 0.4000 | 0.9400 | 1.800 | low | Speculative due to wholesale price and policy unknowns |
| 2032 | - | 1.092 | - | - | |
| 2033-34 | 0.4000 | 1.050 | 2.000 | low | Placeholder estimate with extreme uncertainty |
| 2033 | - | 1.114 | - | - | |
| 2034-35 | 0.3500 | 1.240 | 2.350 | low | Rate could vary significantly due to regulatory changes |
| 2034 | - | 1.137 | - | - |
CfD Supplier Obligation FAQs
What is the CfD Supplier Obligation 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 Supplier Obligation rate?
The CfD Supplier Obligation rate is set by LCCC, quarterly Interim Levy Rate (ILR).
What does CfD Supplier Obligation pay for?
CfD Supplier Obligation revenue supports New offshore wind, solar farms, nuclear (Hinkley Point C).
What is the current CfD Supplier Obligation rate?
For financial year 2025, the published CfD Supplier Obligation rate is 0.8460 p/kWh.
What is the CfD Supplier Obligation forecast?
Our latest forecast for 2026-27 is 1.220 p/kWh (high confidence). AR6 projects commissioning with known strike prices
Related charges in Auto-generated
Calculate your CfD Supplier Obligation exposure
Enter an MPAN or postcode + kWh/kVA to see CfD Supplier Obligation alongside every other non-commodity line item for this year and next.
NCC forecasting
Forward-modelled non-commodity costs for I&C buyers who need to stress-test contract decisions.
All UK energy charges
Browse every non-commodity charge with current published rates and forecast trajectory.
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.