Competition in onshore transmission

Delivery of large onshore electricity transmission projects

Our role is to ensure that new large onshore electricity transmission projects that are needed are delivered efficiently.

We do this through:

  • regulating the delivery of these projects by incumbent Transmission Owners (TOs), via our Strategic Wider Works (SWW) mechanism; or
  • introducing competition into the delivery of these projects.

In January 2018 we published an update to our plans to introduce competition into onshore electricity transmission, available here, and a consultation on our proposal relating to the regulatory treatment of the Hinkley - Seabank project.

Competitive Framework

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 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 have been working to develop the legislation, policy and supporting documents that would enable us to tender onshore electricity transmission assets. Our previous consultations and decisions on our proposed Competitively Appointed Transmission Owner (CATO) regime are available in the ‘Publications and updates’ section of this webpage. We have also developed a quick reference guide to CATO policy development, which covers the key policy decisions we have already made. We are currently considering alternative options to CATOs for introducing competition into the delivery of onshore electricity transmission. We will take forward further development of the CATO regime once there is greater clarity on the timing of enabling legislation.

For a list of potential projects to be considered for competition, please refer to page 101 of the GB System Operator’s 2018 Network Options Assessment report or the SWW page on our website.

Need help?

This page sets out information on the policy and processes around delivery of large onshore electricity transmission projects. If you're looking for information on other aspects of onshore electricity transmission, please refer to the transmission networks page.

If you can’t find the information you’re looking for, email us.

Publications and updates

  • Published: 22nd Oct 2018
  • News and blogs, Open letters and correspondence
  • 1 Associated documents
Ofgem is forming an ECIT Industry Group focusing on the development and delivery of the SPV model.

  • Published: 16th Oct 2018
  • News and blogs, Open letters and correspondence
  • 2 Associated documents
Ofgem is holding a stakeholder event on the September 2018 SPV model consultation.

  • Published: 14th Sep 2018
  • Open letters and correspondence
  • 1 Associated documents
This document explains how we expect the CPM will be applied to future qualifying transmission projects.

  • Published: 14th Sep 2018
  • Open letters and correspondence
  • 2 Associated documents
Update on our plans to introduce competition into electricity transmission and an Impact Assessment on implementing our CPM and SPV models for future projects

  • Published: 14th Sep 2018
  • Closed: 9th Nov 2018
  • Consultations and responses
  • 2 Associated documents
A consultation on the detail of the commercial and regulatory framework of the Special Purpose Vehicle (SPV) model of competition.

  • Published: 23rd Jan 2018
  • Closed: 20th Mar 2018
  • Consultations and responses
  • 20 Associated documents
This consultation sets out our minded-to position on the delivery model that should be used to fund NGET’s Hinkley – Seabank project.

  • Published: 23rd Jan 2018
  • Closed: 20th Feb 2018
  • Consultations and responses
  • 7 Associated documents
We are consulting on proposed changes to electricity transmission licence Standard Licence Condition C27.

  • Published: 23rd Jan 2018
  • Decisions
  • 3 Associated documents
Update on our plans to introduce competition into onshore electricity transmission.

  • Published: 30th Aug 2017
  • Closed: 11th Oct 2017
  • Consultations and responses
  • 30 Associated documents
Consultation on our assessment of the Final Needs Case and potential delivery models for National Grid's Hinkley Seabank project.

  • Published: 14th Jul 2017
  • Decisions
  • 1 Associated documents
An update on our assessment of National Grid’s proposed North West Coast Connections project.

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