Response to the Clean Industry Bonus Consultation

The government has published our response to the Clean Industry Bonus consultation.

The government response confirms our decision to include the following additions to the Contract for Difference (CfD) contract:

• A provision requiring the generator to comply with the requirements set out in their Clean Industry Bonus (CIB) Statements.  
• Provisions requiring generators to update the Low Carbon Contracts Company (LCCC) on the status of their CIB Statement, CIB Implementation Statement application, and their CIB Implementation Statement or CIB Refusal. 
• Provisions on Performance Related Adjustments linked to the CIB Minimum Standard in case of non-delivery, including the effect of CfD contract termination on this liability, and the methodology for settling Performance Related Adjustments. Policy details are provided to clarify the process, including a worked example in Annex 1.  
• Provisions on payments linked to fulfilling CIB Extra Proposals, including the determination, frequency and notice of instalment amounts, as well as the effects of CfD contract termination. Policy details are provided to clarify the process, including a worked example in Annex 1.
• Provisions on the conclusiveness of Secretary of State determinations.  
• A provision to allow for adjustments to CIB Payments in case of a new determination by the Secretary of State. 
• Provisions to index CIB Payments and Performance Related Adjustment.  
• Provisions to apply default interest to CIB Payments and Performance Related Adjustment payments.  
• Provision to require generators to supply to the LCCC their CIB Statement and a director’s certificate within 20 business days of the CfD Agreement Date.  
• Amendments to the definition of Reconciliation Amounts to include CIB Payments or Performance Related Adjustments.  
• Amendments to the conditions of CfD Payments suspensions to exclude suspension of CIB Payments.  
• Amendments to exclude CIB from the CfD’s provisions on force majeure, given CIB force majeure issues are covered in the CIB Guidance. 

In response to questions raised during the consultation period around the treatment of phased CfD units, the government response also includes an explanation of changes made to the contract designed to accommodate for this scenario.  

More information can be found at gov.uk