In collaboration with the Department of Energy and Climate Change (DECC), we established a regulatory regime for offshore transmission networks. The regime is designed to ensure offshore renewable generation projects are economically and efficiently connected to Britain’s electricity grid.
A key part of the regime is the granting of offshore transmission licences on the basis of a competitive Tender Process. We are responsible for managing this process.
Legal framework for competitive tender process
The Electricity Act 1989 allows Ofgem to make regulations for competitive tenders for offshore licences. The regulations are subject to approval by the Secretary of State and underpin the competitive tender process used to grant offshore transmission licences.
The regulations currently applicable are the Electricity (Competitive Tender for Offshore Transmission Licences) Regulations 2015. These regulations set out the process that is to be followed by all parties involved in the tender process.