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Pre-contract Signature

The approach to CFD allocation is set out in the Contract for Difference (Allocation) Regulations 2014 and the Contracts for Difference (Allocation) (Amendment) Regulations 2015. Please see disclaimer on the right. CFD allocation is undertaken by National Grid as the Electricity Market Reform Delivery Body. More information on allocation can be found on their website. Following CFD allocation Low Carbon Contracts Company Ltd will produce the CFD contracts.

In this section:


Minor and Necessary Modification

Under the Contracts for Difference (Standard Terms) Regulations 2014 (“Regulations”), Generators may request Minor and Necessary Modifications to the Contract for Difference Standard Terms and Conditions. Generators can request these modifications from the date of publication of an allocation round notice until 20 working days before the allocation round closing date.

Low Carbon Contracts Company Ltd will assess all applications for minor and necessary modifications in accordance with the criteria set out in the Regulations.

Our guidance for the 2017 Allocation Round on applying for minor and necessary modifications can be found here.

If you would like to talk to us about minor and necessary modifications then please contact us at

Once an allocation round has opened, we will publish updated information.


Contract Production

We do not take part in the allocation of CFDs (this is a matter for National Grid in its role as EMR Delivery Body), but we are responsible for drafting and issuing CFD upon receipt of the CFD notification referred to in Regulation 9(3) of the Contracts for Difference (Standard Terms) Regulations 2014 from National Grid.  We use the information provided by National Grid in the CFD notification to draft the Project specific CFD.

After we receive a CFD notification from National Grid in respect of your Project, before we send you a CFD, we will issue a letter to you notifying you of the processes and key dates that apply to your acceptance. Here you can see an example of the letter which was sent to Generators who were allocated a CFD in the 2014 Allocation Round. While this letter is just an example and is subject to change (in particular the dates will need to be updated for future allocation rounds) it provides an indication of the timescales and processes which we currently work to.

In addition to the timescales within which you must sign and return your CFD, Generators should also note the timescales within which the Initial Conditions Precedent must be fulfilled following contract signature. You can find further information about the Initial Conditions Precedent here.


If you can’t find what you are looking for here, or in our FAQ section then please call us on 0207 211 8881 or contact us at

 “CFD notification” is defined in section 12(1) of the Energy Act 2013




The information provided is designed to offer guidance. This information does not constitute legal or investment advice and should not be relied upon as such. Generators should consult their professional advisors where they require advice whether legal or otherwise on the application of regulations or the  Contracts for Difference. This page is subject to change. Any defined terms which are used but not defined here have the meaning ascribed to them in the CFD.

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