Offshore electricity transmission licensing arrangements

Ofgem/DTI consultation (58 pages, PDF) on two possible options for licensing transmission connections between generators located in offshore waters and onshore electricity networks. Ofgem favours the option of a non-exclusive system where licences are granted to any party that can satisfy the relevant application criteria. The alternative option put forward by the document is an exclusive system similar to the onshore transmission network arrangements, where a single transmission owner would be responsible for responding to connection requests from generators in a particular offshore geographical area. The DTI does not state a preference between the two options.

The likely imposition of price controls and of National Grid as system operator for offshore networks have already been announced by the Government.

Update: The DTI has also published a partial impact assessment (40 pages, PDF). Despite the fact that one of the options involves the State grant of monopolies, "the Government does not consider that a competition assessment is necessary as regulation for the market to provide offshore electricity transmission infrastructure does not currently exist". (The document nevertheless notes some of the competition effects of the proposals.)

Responses by Monday 8 January 2007.

For further information or advice please contact Franck Latrémolière.

Filed under DTI/BERR, Electricity, Ofgem, Price controls.

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