Under the enduring regime, offshore developers will have the flexibility to choose whether they or an OFTO design and construct transmission assets. Regardless of the party who constructs the offshore transmission assets, an OFTO will be responsible for the ongoing ownership and operation of the transmission assets.
Consultation on tender exercises under the enduring regime
Over 20 projects are likely to qualify for the enduring regime, delivering up to 30GW of additional capacity with potential assets valued at up to £14 billion. This offers a significant investment opportunity as well as a chance for the industry to participate in a growing and innovative market. Given the scale and complexity of enduring projects, it is necessary to ensure that the regime which underpins it is fit for purpose and meets the needs of developers, OFTOs and consumers. Therefore, Ofgem is running a further consultation on the enduring regime from 16 December 2011 until 17 February 2012.
This consultation builds on lessons learnt through the transitional tender regime, from previous consultations and from our ongoing engagement with stakeholders in order to set out our proposed approach to the 'OFTO build' model under the enduring regime.
The OFTO build approach, as detailed in the consultation document, is expected to deliver significant commercial benefits for industry participants as well as ensuring value for money for consumers. The consultation document also briefly considers proposed changes to the 'Generator build' model where this departs from the transitional regime approach, and sets out our initial thinking on phased or staged construction of transmission assets.
To view the consultation document please see: Consultation on tender exercises under the enduring regime
Enduring regime stakeholder briefing event
We are holding a stakeholder briefing event on the enduring regime for offshore transmission on 9 February 2012. The event will take place at the BIS Conference Centre, London, between 10:00 and 12:30. To confirm your interest in attending please email offshore.enduring@ofgem.gov.uk. Please note that spaces are limited and will be allocated on a first come, first served basis.
Ofgem enduring regime stakeholder community
We encourage you to join our stakeholder community comprising those with an interest and expertise in the offshore transmission regime. The community will be kept up to date with all planned stakeholder activities, events and communications related to the enduring regime. To join our stakeholder community or to arrange a bilateral meeting please email offshorecoordination@ofgem.gov.uk.