Cap and floor regime: Open letter on procedural changes to our Final Project Assessment stage
In August 2014 we confirmed our cap and floor regime as the regulated route for interconnector development in Great Britain. We set out an assessment framework for cap and floor projects, which included three stages – our Initial Project Assessment (IPA), Final Project Assessment (FPA) and Post-Construction Review (PCR). This letter provides an update on the FPA stage of our process.
Following an internal review of our processes, we are proposing to consult at the FPA stage only if there are significant changes from the information we published at the IPA stage (such as if project costs have materially increased, or we are minded to approve variations to the default regime design). In situations where there are no significant changes, our default approach will be to engage bilaterally with the relevant project developers during our FPA assessment, and then to publish our FPA decision without a public consultation.
We will continue to consult on decisions taken at our IPA stage and at the PCR stage. We will also continue to consult on licence changes that give effect to our cap and floor decisions, in line with statutory requirements.