Modifications to the Electricity System Operator Licence: Early Competition in Onshore Electricity Transmission

Early competition in onshore electricity transmission is a competitive tender process to appoint a Competitively Appointed Transmission Owner (CATO) to design, finance, build and operate assets on the electricity transmission network.

In April 2025, we published our 'Decision on the Electricity (Early-Model Competitive Tenders for Onshore Transmission Licences) Regulations 2025', referred to as the Tender Regulations, which establish the roles, responsibilities and process governing onshore transmission tender exercises. 

This statutory consultation sets out proposed modifications to the National Electricity System Operator’s (NESO) licence to implement new licence obligations arising from its role as the delivery body of a tender exercise run under the Tender Regulations.

This includes obligations in respect to the submission of Tender Documentation for approval by Ofgem, the provision of information to bidders, compliance with the new Onshore Competition Information Exchange Guidance and requirement to conduct an Onshore Transmission Tender Exercise in an efficient and effective manner.

We welcome feedback from stakeholders on the proposed licence modification.