Hinkley - Seabank: Minded-to consultation on delivery model

Publication date
23rd January 2018
Closing date
20th March 2018
Policy area

This document sets out our view that National Grid Electricity Transmission should be funded to deliver the Hinkley-Seabank project through a mechanism which seeks to reflect the outcome of an efficient competitive process for the financing, construction and operation of the project. We refer to this mechanism as Competition Proxy.

Under Competition Proxy we propose to apply a specifically determined cost of capital, derived using an updated methodology, to Hinkley – Seabank over its construction and 25 years of operation. National Grid would receive a project-specific revenue allowance.

Please note that the New Transmission Investment team is publishing four documents today. The title and content of each of these documents has been mapped out in the subsidiary document ‘Competition in onshore transmission: January 2018 publications’, below.