Ofgem sets out plans for onshore competition

Ofgem has laid out in detail the competitive selection process it plans to introduce to the ownership of onshore transmission assets.

The regulator will use the late competitively appointed transmission owners (CATO) model, comprising of three evaluated tender stages to assess a bidder’s suitability, experience and expertise alongside their proposals for the project.

Ofgem will consult with industry on its proposals for the tendering of CATOs, as well as how their revenue will be structured, risk allocation, and obligations and incentives, with a view to being ready to run competitive tenders from mid-to-late 2017.

Ofgem decided through the integrated transmission planning and regulation project which reviewed the arrangements for planning and delivering the onshore, offshore and cross-border electricity transmission networks in Great Britain to introduce competition to onshore assets.

It is also currently reviewing responses to an earlier consultation on the identification process for where a competitive tender can be run and proposals for conflict mitigation measures.

Ofgem said it will set out its decisions based on the consultations at the end of 2016 or early 2017. It will also publish outline draft tender documents, with a view to developing a draft CATO licence by Spring 2017.

It is also simultaneously progressing assessments of specific projects to establish how to apply the generic regime to specific cases. Ofgem will outline its initial view by the end of the year on whether to tender the North West coast connections project.

The consultation closes on September 29.

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