OFTO tender round structure
Each OFTO tender round follows this structure:
Enhanced pre-qualification (EPQ)
Ofgem assesses a Bidder’s suitability, relevant experience, financial standing and technical capabilities.
Those successful at this stage become Qualifying Bidders (QBs) and are invited to participate in the Invitation to Tender stage.
Invitation to tender (ITT)
QBs are invited to participate in this process and are provided with the evaluation criteria, which they are required to respond to and satisfy.
Ofgem assesses received bids to ensure that the evaluation criteria are satisfied.
Such satisfactory bids are subsequently reviewed to rank the price submitted by each QB.
The lowest priced bid submitted wins, leading to them becoming the preferred bidder (PB).
Preferred bidder (PB)
Following appointment of the PB, a period of time is given for the transaction to be undertaken, during which arrangements for the purchase of the offshore electricity transmission infrastructure is completed to near finalisation.
Successful bidder (SB)
We issue the SB with an offshore electricity transmission licence, which will then lead to them becoming and operating as an OFTO.
Financial Close of the transaction takes place at this stage.