Post Construction Review of the Nemo Link interconnector to Belgium

Publication date
12th September 2019
Closing date
11th October 2019
Policy areas

Nemo Link is the first interconnector project to be regulated under our cap and floor regime. Nemo Link commenced commercial operations on 31 January 2019.

We granted Nemo Link a cap and floor regime in December 2014, and subsequently set the preliminary cap and floor levels in Nemo Link’s licence. The project has reached the final assessment stage of the regime, the Post Construction Review (PCR), where we determine the value of the Post Construction Adjustment (PCA) terms and set the final cap and floor levels for the project.

At this stage, we revisit aspects of our cost assessment that were not fixed at previous stages, and assess the efficiency of responses to events that have materialised during construction. We then determine the value of the PCA terms, which adjust the preliminary cap and floor levels to take into account our final view of the project’s costs.

About this consultation

This consultation sets out our minded-to position on Nemo Link’s PCR, in particular our views on the proposed values for the PCA terms submitted by Nemo Link and proposed final cap and floor levels for the project.

Alongside our consultation on the Nemo Link PCR, we are also consulting on related changes to the special conditions of Nemo Link’s licence, on changes to the electricity interconnector licence and on proposed new Cap and Floor Regulatory Instruction and Guidance. We are also seeking views on our updated Nemo Link Cap and Floor Financial Models and associated handbooks.

This consultation will close on 11 October 2019. Subject to stakeholder responses, we aim to make our final decision on Nemo Link’s PCR and on the other elements outlined above by the end of November 2019.