When a TO wishes to bring forward a project for consideration under the SWW arrangements, it must give us notice that it is proposing a new network development. It must also submit supporting information to justify the network reinforcement and show that the project meets our eligibility criteria for assessment under the SWW mechanism:
- the project delivers additional network capacity;
- the project is not funded elsewhere in the price control; and
- the project value meets a minimum financial threshold.
We will assess whether the proposed reinforcement is well justified and whether it is in the interests of existing and future consumers through the Initial and Final Needs Cases. We will then assess the efficiency of the technical design, costs and delivery plan in greater detail at Project Assessment. We will consult stakeholders on our needs cases and project assessment to inform our decisions on whether to approve the proposal.
This process, and approximate timings for each stage, is shown in the diagram saved as a subsidiary document below this page.
If we conclude positively on all aspects of our assessments, the specific cost allowances that the TO will be permitted to recover from consumers will be set and we will consult on the proposed modifications to the TO’s electricity transmission licence. These modifications would specify a new SWW output for the network development, and the additional allowed expenditure that the TO can recover from consumers through network charges in order to fund this network reinforcement.
Until we approve the final needs case, all expenditure on construction is undertaken at the TO’s own risk.
