Construction News

20/10/2015

Ofgem To Consult On Increasing Electricity Infrastructure Competition

Ofgem has announced it is to consult on how to tender new onshore electricity transmission infrastructure projects to increase competition.

Since 2009, links to offshore wind farms have been competitively tendered, saving consumers between £200m and £400m.

Ofgem now wants to apply this criteria to new, high-value onshore electricity transmission infrastructure projects worth £100m or more.

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The announcement means the three monopoly transmission companies, National Grid Electricity Transmission, Scottish Hydro Electricity Transmission, and Scottish Power Transmission, will have to compete against other firms for the right to build and own new, high-value transmission assets.Ofgem added the first tender could take place in 2017.

Dermot Nolan, CEO, said: "Part of our role is to ensure that customers pay no more for energy infrastructure than they have to. We took a ground-breaking approach by opening up ownership of offshore links to competition and now we are going further.

"In future we will tender out high-value electricity infrastructure projects onshore. This ensures that customers get even better value for money from Britain's grids."

(LM)

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