OFTO: extension and evolution of a mature asset class
Consultation
- Upcoming
- Open
- Closed (awaiting decision)
- Closed (with decision)
- Publication date
- Closed date
- Industry sector
- Offshore Transmission Network
The Offshore Electricity Transmission (OFTO) regime has operated steadily and successfully since 2012, delivering 27 offshore transmission assets to responsible owners through a competitive tender process that keeps costs down for consumers.
Since 2021, Ofgem has been engaging with stakeholders about a range of evolutionary changes aimed at ensuring the OFTO regime remains effective. This consultation follows conversations with stakeholders on:
- early windfarms and OFTO assets reaching the end of the tender revenue stream
- the duration and efficiency of the tender process in relation to the generator commissioning clause (GCC)
- growth in the industry and technological advancements of assets
What we are consulting on
- the policy framework for extension to OFTO revenue streams
- the most appropriate licence term duration relevant to the technical life of OFTO assets
- potential options for improving the efficiency of tender process were the generator commissioning clause to be extended
Who should respond
People with an interest in offshore transmission, particularly developers, offshore transmission owners, investors and potential bidders. We also welcome responses from other stakeholders and the public.
Why your views matter
By responding to this consultation, you will help improve our understanding of stakeholders’ perspectives and inform our decisions on these issues.
Next steps
We will review all responses and will publish our decisions in the second quarter of 2025. We will also take forward any licence modifications that may be required to implement any new framework. We may consult further on outstanding questions to supplement our understanding.
How to respond
We are asking for your feedback on each topic with questions throughout. Please respond as fully as you can and send your response to offshorelicencing@ofgem.gov.uk.