This consultation follows from Ofgem’s policy decision to introduce early competition in onshore electricity transmission networks (see also, policy update). We are consulting on the draft Electricity (Early-Model Competitive Tenders for Onshore Transmission Licences) Regulations 2024 (the “Tender Regulations”) that will provide the legislative framework for future onshore transmission tender exercises. The consultation document provides an overview of the draft Tender Regulations along with the policy background and context relevant to each part. The draft Tender Regulations set out the:
- stages of an onshore transmission tender exercise
- the process for competitive tenders that will apply to the grant of onshore transmission licences
- governance framework for events such as the withdrawal, re-run, cancellation of tenders and disqualification from an onshore transmission tender exercise
- governance framework for the treatment of payments and security, and the recovery of tender costs in relation to an onshore transmission tender exercise; and
- functions of the ‘Delivery Body’ (National Energy System Operator (NESO)) and the ‘Authority’ (Ofgem) in the conduct of onshore transmission tender exercises, including the review of Delivery Body functions by the Authority
We invite feedback from stakeholders on all aspects of the draft Tender Regulations.
