OFTO: further evolution of a mature asset class

The Offshore Electricity Transmission (OFTO) regime has operated steadily and successfully since 2012, delivering 27 offshore transmission assets to responsible owners through a competitive tender process that keeps costs down for consumers. 

Since 2021, Ofgem has been engaging with stakeholders about a range of evolutionary changes aimed at ensuring the OFTO regime remains effective. This consultation follows conversations with stakeholders on: 

• early windfarms and OFTO assets reaching the end of the tender revenue stream 
• the duration and efficiency of the tender process in relation to the generator commissioning clause (GCC)  
• growth in the industry and technological advancements of assets 

What we are consulting on 

• HVDC availability  
• Control of OFTO assets 
• Changes to the Generator Commissioning Clause 
• Bidder Incentive Mechanisms  

Who should respond  

People with an interest in offshore transmission, particularly developers, offshore transmission owners, investors and potential bidders. We also welcome responses from other stakeholders and the public.  

Why your views matter  

By responding to this consultation, you will help improve our understanding of stakeholders’ perspectives and inform our decisions on these issues.  

Next steps 

We will review all responses and will publish our decisions later this year. We may consult further on outstanding questions to supplement our understanding. 

How to respond  

We are asking for your feedback on each topic with questions throughout. Please respond as fully as you can and send your response to offshorelicensing@ofgem.gov.uk.