Decision and updated policy position on the onshore electricity transmission Early Competition commercial framework
Decision
- Publication date
- Industry sector
- Transmission Network
- Licence type
- Electricity Transmission Licence
Following our October 2024 consultation, this document summarises our decision and updated policy position on the National Energy System Operator’s (NESO) proposals on the commercial framework for the Early Competition regime, as published in its Early Competition Implementation Update (ECI-Update) and the Early Competition Plan.
The commercial framework includes:
- post-award security obligation on the Competitively Appointed Transmission Owner (CATO) during the preliminary works and construction stages
- payments to a CATO during the preliminary works stage
- post preliminary works cost assessment
- payment to the CATO and performance incentives during the operational stage
- additional works obligation on CATOs beyond the scope of work originally tendered
- revenue period and the next steps following the end of the revenue period