Decision on the Initial Project Assessment of the NSN interconnector to Norway

Publication date
12th March 2015
Information type
Policy area

We have decided to grant NSN a cap and floor regime in principle and subject to no material escalation in the costs as submitted to Ofgem to date by the project developers. This follows our December 2014 consultation on our proposals.

We have considered the feedback on our proposals from consultation responses (available on the consultation page) and taken these into account in reaching our decision. We still think that the NSN project is in the interests of GB consumers. The benefits of the NSN project are driven by maximising the value of GB and Norwegian renewables, and allowing the flow of generally cheaper electricity into GB. It will bring benefits to GB consumers by reducing the wholesale price of electricity, improving the operation of the GB transmission system and increasing security of supply.

We expect NSN to make its full FPA cost submission in mid-2015. We will consult on our detailed cost assessment at the FPA stage and our decision will be used to set a provisional cap and floor for NSN.