NorthConnect - Cap and floor regime withdrawal
Decision
- Publication date
- Company
- NorthConnect Limited
- Industry sector
- Transmission Network
This letter sets our intention to withdraw the cap and floor regime awarded in principle to NorthConnect Limited (NorthConnect) in January 2018 with respect to the NorthConnect interconnector project.
NorthConnect is the developer of a proposed 1.4GW electricity interconnector between Norway and Great Britain. Our decision to award a cap and floor regime, under our second application window, to the NorthConnect interconnector was contingent upon NorthConnect meeting certain conditions. These conditions are intended to incentivise timely delivery of projects and to ensure that consumers start to realise the anticipated benefits that informed our decision on the needs case for the project at the Initial Project Assessment (IPA) stage.
With the project having encountered significant delays and with no realistic prospect of it being delivered in the coming years in the form assessed at the IPA stage. We consider it necessary to withdraw the cap and floor regime awarded to NorthConnect.
We recently received a Mult-Purpose Interconnector (MPI) application from the NorthConnect Consortium under the MPI Pilot scheme and look forward to discussing the application with them in due course.