DECC issued a policy paper on Wednesday 28 January on the Non-Delivery Disincentive (NDD) for contracts for difference (CfD). The NDD is intended to incentivise applicants who have been successful in the allocation process to sign the CfD offered to them and to minimise the risk that those who enter into a CfD fail to deliver on the project. Subject to a set of exemptions, the policy will apply to sites for which an applicant either fails to signs a CfD or fails to deliver the project. It will create a 13-month “exclusion” period, from the ability to make a new CfD application, for affected sites. The policy will apply from the first allocation round.
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