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UK, Contracts for Difference: COVID-19 may be eligible for Force Majeure relief, LCCC announces

  • United Kingdom
  • Energy and infrastructure - Clean energy

21-04-2020

The Low Carbon Contracts Company (“LCCC”), the counterparty for the UK’s Contracts for Difference (“CFD”) scheme, issued an advice note on 7 April 2020 confirming that COVID-19 is capable of constituting a Force Majeure event under CFD Agreement.

A generator with a CFD may therefore be able to suspend its obligations or delay deadlines by invoking the standard CFD Force Majeure clause, where the COVID-19 outbreak, or measures to contain it, prevents or delays them from performing their obligations under the CFD.

The LCCC stated that any claim for Force Majeure relief as a result of delays caused by COVID-19 to a particular project will be assessed on the facts provided by the generator in question on a case by case basis.

The LCCC have indicated that they intend to take a reasonable and pragmatic approach to this.

You can view our global Force Majeure guide by clicking here.

If you would like to discuss the above, the UK market or clean energy opportunities globally, please contact the team below.

Michelle T Davies, Partner
Jean-Pascal Boutin, Partner
Ben Brown, Senior Associate

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