Determination of the Within Period Adjustment request made by National Grid IFA2
Correspondence and other
- Publication date
- Company
- National Grid IFA 2 Limited
- Industry sector
- Transmission Network
- Licence type
- Electricity Interconnector Licence
Related links
- Decision on the Post Construction Review of the IFA2 interconnector to France
- Post Construction Review of the IFA2 interconnector to France
- Cap and Floor Regime Handbook
- Statutory consultation: Decision on changes to the electricity interconnector licence held by National Grid IFA2 Limited (NGIFA2)
- Final Project Assessment of the IFA2 interconnector to France
Ofgem’s cap and floor regime sets a yearly maximum (cap) and minimum (floor) level for the revenues that the interconnector licensee can earn over a 25-year period. Usually, revenues generated by the interconnector are compared against the cap and floor levels over five-year assessment periods. Top-up payments are made to the interconnector licensee if revenues are lower than the floor; and similarly, the licensee pays revenues in excess of the cap to consumers. A Within Period Adjustment (WPA) may be requested by a licensee, enabling payments to be made before the end of the five-year assessment period.
This publication details our determination of the WPA requested by National Grid IFA 2 Limited (NGIFA2) with respect to the IFA2 Interconnector. The Relevant Partial Assessment Period for this WPA request is 1 January 2021 to 31 March 2022.