Low Carbon Contracts Company and Electricity Settlements Company operational costs: 2026/27, 2027/28 and 2028/29

Between 26 November 2025 to 2 January 2026, the government hosted a public consultation on the proposed 2026/27, 2027/28 and 2028/29 operational cost levies and resulting levies for the Low Carbon Contracts Company and the Electricity Settlements Company. We received one response to the consultation; the government response summarises the comments received and addresses points raised from consultation respondents. It confirms the response was supportive and welcomed the proposed operational cost budgets for both companies for the next three financial years.

The regulations, setting the levies, have now been laid before Parliament. The Electricity Supplier Payments (Amendment) Regulations 2026. The intention is that subject to the will of parliament the provisions for the 2026/27, 2027/28 and 2028/29 levies will come into effect on the day after the day on which the amending regulations are made in respect of the settlement cost levy and on 1 April 2026 in respect of the operational cost levies.