Senior Independent DirectorClosed
|Body:||Low Carbon Contracts Company and Electricity Settlements Company|
|Appointing Department:||Department of Business, Energy and Industrial Strategy|
|Skills required:||IT / Digital, Major Projects|
|Number of Vacancies:||1|
|Remuneration:||Fee will be £35,000 per annum inclusive of a £5,000 supplement for chairing either the Remuneration or Audit committee as required. Fee is based on an average of one day a week (0.8 days for LCCC and 0.2 days for ESC).|
|Time Requirements:||The Board meets 6-8 times per year, plus one strategy day in addition, with meetings held at the LCCC’s offices in London. Without committee chair responsibilities for either the Remuneration or Audit Committee, the fee will be £35,000 (based on a commitment of up to 45.5 days per year). Any additional days worked will be on a voluntary basis|
Closed for Applications
Final Interview Date
w/c 18/05 & 25/05
Director, Clean Electricity • Departmental Official
Chair of the LCCC and ESC • Representative of Organisation
Do you want to help deliver secure, affordable and sustainable electricity to help ensure that the lights are kept on?
If this is of interest to you, we would like you to get in touch about an opportunity to play a key role in supporting the Low Carbon Contracts Company Limited (LCCC) and the Electricity Settlements Company Limited (ESC). Both companies continue to play a key role in deploying the low carbon electricity to meet the Government’s net zero target and maximise investment in renewable and other low carbon electricity.
The LCCC was set up to support the Contracts for Difference (CFD) scheme and handle he CFDs. The ESC was set up to support the Capacity Market and settle relevant payments. Both companies are owned by BEIS but have day-to-day operational independence, subject to certain limited exceptions which require shareholder consent.
CFDs are long term private law contracts between LCCC and Generators which encourage Generators to build and operate low carbon generating capacity by giving them a fixed price (the ‘strike price’) for the electricity they generate from their new plant. Generators receive revenue from selling their electricity into the market. When the market reference price is below the strike price, generators receive a top-up payment for the additional amount. Conversely if the reference price is above the strike price, the generator pays back the difference. This fixed price will enable the generator to access capital and drive down build costs. LCCC receives its funding to make these payments from a levy on all electricity retail suppliers.
The Capacity Market ensures there is sufficient reliable capacity in place to meet demand in times of “system stress” (i.e. where National Grid notifies a formal requirement to Capacity Market providers). It does this by providing a predictable revenue stream (or ‘retainer’) to providers of reliable capacity, whether generators of electricity or demand side reduction. In return, they should commit to provide capacity when needed or face financial penalties.
LCCC is the counterparty to the CFD contracts with generators and has responsibility for handling the contracts over their lifetime. The company is currently counterparty to 52 CFDs which are currently valued at around £66bn over the lifetime of the contracts, which is typically 15 years (post operation) but can be longer. LCCC performs ESC’s functions on behalf of ESC and is the employer of all staff. Under the Capacity Market, ESC makes payments to capacity providers who have entered into capacity agreements with National Grid.
Senior Independent Director – role and job specification:
The SID plays a key role in ensuring that there is an independent route to the Board for the Shareholder and fulfil the duties of the Chair in circumstances where he or she is conflicted.
The SID will have the following responsibilities:
- Be fully prepared for and contribute to the Board, designated Board Committees and extraordinary or ad hoc meetings as required; Chair Board Committees as required;
- Represent the Company at external events from time to time, if requested by the Chair;
- Contribute to the discussion and be prepared to challenge the business strategy, performance, risk appetite and use of resources as necessary;
- Ensure that effective governance structures and risk management disciplines are robust and in line with current best practice;
- A collective responsibility to ensure that financial information is accurate and that financial controls and systems of risk management are robust, fit for purpose and effective;
- Take collective responsibility for the decisions of the Board and/or Committees where this is appropriate and in the best interests of the companies;
- Contribute to and influence the decisions on the succession, selection or termination of other NEDs or Board executives when required;
- Work closely with the chair, acting as a sounding board and providing support;
- Act as an intermediary for other directors as and when necessary;
- Be available to the shareholder and other non-executive directors to address any concerns or issues they feel have not been adequately dealt with through the usual channels of communication (i.e. through the chair, the chief executive or chief financial officer);
- Meet at least annually with the non-executives to review the chair’s performance and carrying out succession planning for the chair’s role; and
- Attend sufficient meetings with the shareholder to obtain a balanced understanding of their issues and concerns.
Your application should demonstrate board experience, with an operational or commercial background and possess the following personal qualities:
- Leadership role within a large, complex organisation;
- Track record of ensuring effective governance and probity;
- Strong ability to communicate, build effective relationships, engage and negotiate effectively with senior representatives, such as Ministers, policy makers within Government, the electricity sector and investors;
- Ability to quickly understand the economic and commercial issues that shape he electricity sector and challenge complex assessments involving these considerations; and
- Good strategic perspective, influencing skills and the ability to work collegiately.
Experience in one of more of the following areas:
- Risk management;
- Experience and or knowledge of handling public money;
- The electricity market or developing and running generation assets;
- Large commercial contracts or major infrastructure/ construction project or large-scale project development and management;
- Financial services sector; or
- Specialist experience (e.g. IT, legal).