Decision on 2024-25 Interest During Construction rates for offshore transmission projects and cap and floor interconnectors and modification to inflation metrics

Decision
Dyddiad cyhoeddi
Sector diwydiant
Transmission Network
Offshore Transmission Network
Penderfyniad ar gyfer
Consultation on moving from RPI to CPIH as the inflation index for the Interest During Construction rate for projects under the Offshore Transmission Owner regime and Window 3 electricity interconnectors

Dolenni cysylltiedig

Decision on 2023-24 Interest During Construction (IDC) rates for offshore transmission projects and cap and floor interconnectors

In November 2023, we published a consultation on proposed changes to the inflation index used to calculate the Interest During Construction (IDC) for offshore transmission (OFTO) projects and Window 3 cap and floor electricity interconnectors. We received five responses to the consultation. Following consideration of these responses, we have decided to proceed with these changes.

This letter also sets out our decision on the IDC rates for offshore transmission projects and Window 3 cap and floor electricity interconnectors, to apply to projects which take a Final Investment Decision (FID) during 2024 to 2025.

Following a public consultation process and a careful consideration of stakeholders’ views, we have decided the following:

  • OFTO projects IDC – to confirm the IDC cap rate at 9.48% (pre-tax, nominal) for projects reaching FID during 2024 to 2025
  • Window 3 Interconnector IDC – to confirm the rate at 5.38% (vanilla, real-CPIH) for projects reaching FID during 2024 to 2025

Prif ddogfen

2024-25 IDC Decision letter [PDF, 212.92KB]