Decision: OFTO extension and evolution of a mature asset class
Decision
- Publication date
- Industry sector
- Offshore Transmission Network
In December 2024, we consulted on a number of issues relating to the End of Tender Revenue Stream (EoTRS) in order to finalise how we expect the offshore transmission regime to work, in practice, for projects nearing the end of the original tender period. These included questions on:
- whether the availability target in the extension period should remain the same as in the original tender period
- related requirements for the amount OFTOs should include within the performance reserve
- our approach to partial and interim awards for investment works and Health Review costs;
- risk sharing around early withdrawal for both generators and OFTOs
- the resulting scope and review of Extension Revenue Stream (ERS) bids
We also asked questions on the length of the Tender Revenue Stream (TRS) and whether it should be extended past the current term of 25 years, and on extending the Generator Commissioning Clause (GCC) and the consequential impacts for the tender period.
This document covers the decisions that Ofgem has taken on EoTRS issues and the extension of the TRS, after carefully considering feedback from stakeholders to our December 2024 consultation.