This letter consults on the opening asset value for a project known as the England-Scotland interconnector for SP Transmission plc (“SP”). The project qualifies for potential cost recovery under the Transmission Investment for Renewable Generation (TIRG) mechanism. This letter sets our initial view on the opening asset value for the revenue allowances SP will receive in the five years from construction completion.
Our initial view is that SP’s expenditure on the England-Scotland interconnector met all of the necessary criteria for post construction allowances in 2010-11. Based on this, we propose an opening asset value of £76.702 million in 2009-10 prices, subject to consideration of the responses to this consultation.
We invite responses to this consultation by 14th February 2014. Subject to consideration of the responses, we currently intend to publish a determination in March 2014.