Decision on our needs case review of the FAB Link interconnector
Decision
- Publication date
- Company
- FAB Link Limited
- Industry sector
- Transmission Network
The FAB Link project is being jointly developed by FAB Link Limited and RTE, and will be a 1400MW electricity interconnector between Exeter, Great Britain and the Cotentin peninsula, France, via the Channel Island of Alderney. Ofgem’s cap and floor regulatory regime applies to the GB portion of the cost and revenues of the project (65% share).
The cap and floor regime is the regulated route for interconnector development in GB. Following our initial project assessment (IPA) of the FAB Link interconnector in July 2015, we decided to grant the project a cap and floor regime in principle, conditional on meeting certain criteria, including operational timelines.
In 2020, Ofgem received information from FAB Link Limited stating that the expected connection date for FAB Link would be postponed from previous proposals, which we considered to be a material delay to the project. We therefore decided to revisit aspects of FAB Link’s needs case, to determine whether it remains in the interests of GB consumers.
This publication is the decision letter informing FAB Link Limited, and wider stakeholders, of the outcome of our needs case reassessment for the FAB Link interconnector. Following our review of the socio-economic benefits and wider impacts of FAB Link, we have concluded that FAB Link is likely still in the interest of current and future GB consumers.