We ensure that new large onshore electricity transmission projects are delivered efficiently.
We do this through:
- regulating the delivery of these projects by incumbent Transmission Owners (TOs), via our RIIO price control framework, or
- introducing competition into the delivery of these projects.
Large Onshore Transmission Investment
As part of the RIIO-T2 price control we put in place a Large Onshore Transmission Investment (LOTI) mechanism to allow TOs to bring forward large investment projects where funding had not been awarded as part of the price control settlement.
This mechanism allows us to consider the need and funding for these projects during the price control period, and to support timely delivery of the proposed work. The LOTI mechanism is very similar to the Strategic Wider Works mechanism we put in place for large investment during the RIIO-T1 price control.
We published the LOTI Re-opener Guidance on 21 March 2021.
The TOs have identified a number of projects that they consider are suitable for future consideration under the LOTI arrangements. Other projects which meet the eligibility criteria set as part of the price control may also be brought forward.
See current and proposed onshore transmission projects for information on the status of projects we will assess during RIIO-2.
To see historical publications specific to projects before RIIO-2 please go to previous onshore transmission projects.
As part of our Integrated Transmission Planning and Regulation project we decided that new, separable and high-value onshore electricity transmission assets should be competitively tendered. This ensures value for consumers, with the potential for reduced costs and increased innovation.
To develop this approach, we intend to build on our offshore transmission regime which grants licences on the basis of competitive tendering. The offshore transmission regime has led to considerable savings for consumers since its implementation in 2009.
We first proposed an approach for a Competitively Appointed Transmission Owner (CATO) regime in 2016and have developed the regime in some detail. We are currently awaiting greater clarity on the timing of enabling legislation.
For a list of potential projects to be considered for competition, please refer to the GB System Operator’s Network Options Assessment report or the Large Onshore Transmission Investment information below.
Associated RIIO areas
There are other areas of RIIO-2 which are closely associated to the LOTI and Competition workstreams set out above. On this page we may also publish updates in relation to the following areas:
- LOTI Pre-Construction Funding – In addition to the £500m+ of allowances set during RIIO-2 for TOs to develop LOTI projects, we also established the Pre-Construction Funding Re-opener, which will allow TOs to seek additional funding during RIIO-2, if required.
- Large Project Delivery (LPD) – Our RIIO-2 Final Determinations established a framework for incentivising the timely delivery of these large transmission projects, and minimising consumer detriment if they are delivered late.
- Network Planning Review – We are currently working with industry to conduct a strategic review of electricity transmission network investment planning, to ensure that it can efficiently support the delivery of Net Zero at lowest cost to consumers.
This page sets out information on the policy and processes around delivery of large onshore electricity transmission projects.
If you can’t find the information you’re looking for please contact: RIIOElectricityDevelopment@ofgem.gov.uk