One of the key decisions from our Integrated Transmission Planning and Regulation project, was that new, separable and high value onshore transmission assets should be competitively tendered. This is to ensure value for consumers, with potential reduced costs and increased innovation. The successful outcome of a tender would see us grant a licence to a competitively appointed transmission owner (CATO).
The process will build on our offshore transmission regime which grants licences on the basis of competitive tendering. The regime has led to considerable savings for consumers of between £600m and £1.2bn since its implementation in 2009.
We decided early in 2015 to introduce competition for who builds, finances, owns and operates parts of Britian's onshore electricity transmission system. We are about halfway through developing the policy and supporting documents that will enable us to tender onshore transmission assets, and plan to be able to run the first onshore tender in late 2017 - early 2018.
We have published three consultation documents to date; setting out:
- our initial policy proposals for implementing competition;
- further proposals on criteria for tendering, pre-tender and conflict mitigation arrangements; and
- further proposals setting out when we will run tenders and how we will regulate CATOs.
We have developed a quick reference guide to CATO policy development which covers the key policy proposals we are currently working on, and the policy decisions we have already made. You can find this guide in the publications section at the bottom of this page.
We are considering the responses to our recent consultation which outlined the tender model and market offering proposals for competitive tendering of onshore transmission assets.
We have recently published a new consultation on licence changes for supporting project identification, pre-tender activities and mitigation of conflicts in the late CATO model. We welcome stakeholder views on this consultation.
We welcome stakeholders views and we will be holding stakeholder workshops during the consultation period. To register your interest in attending one of these workshops, please email us.
We are also happy to meet with stakeholders to discuss any aspects of implementing competition in onshore electricity transmission. If you would like to organise a meeting, please email us.
We will continue to develop policy for tendering onshore transmission assets, taking into account stakeholder views. We expect to consult stakeholders in Spring 2017 on how the proposed tender process would work for specific projects that are already in the pipeline.
We’ll publish updates on the policy as it develops, alongside guidance on the tender process in the publications and updates feed below.
If you can’t find the information you’re looking for, email us
This page sets out information on the policy and processes around tendering onshore transmission assets. If you're looking for information on other aspects of onshore electricity transmission, please refer to the transmission networks page.