Income Adjusting Events policy in Offshore Transmission Owner Licences


Publication date

Industry sector

Offshore Transmission Network

This document discusses and replies to stakeholder responses to Ofgem’s Income Adjusting Event open letter of 6 February 2018 and clarifies Ofgem's policy relating to the operation of Amended Standard Condition E12-J3 (Restriction of Transmission Revenue: Allowed Pass-through Items) (the IAE Condition) in the Offshore Transmission Owner licence. In particular, it clarifies Ofgem’s approach to Income Adjusting Event claims in the context of asset failures caused by latent defects (in particular in circumstances of uninsurability) and sets out Ofgem’s intention to make modifications to the IAE Condition in the Offshore Transmission Owner licence.