Ofgem has launched a consultation on proposed modifications to the transmission licence for the grid assets of the 1200MW Hornsea 1 offshore wind farm off the east coast of England.
Diamond Transmission Partners – a consortium of Mitsubishi Corporation and Chubu Electric Power – is the preferred bidder for the OFTO licence for the project.
The proposed modifications include a pass-through mechanism known as the contingent event revenue adjustment (CEA).
Ofgem said this would allow for adjustments the potential licensee’s revenue entitlement should costs and/or expenses arise in the event that the licensee has been required by the Secretary of State to increase the size of its security in respect of its decommissioning programme to account for the payment of VAT.
The UK energy regulator said it considers that the most appropriate way of providing the potential licensee with a method to recoup costs and/or expenses resulting from a contingent event is by including a CEA term in the licence.
Other amendments are related to a tender revenue stream and to income adjusting events.
The full consultation document can be found here.
Responses must be made by midnight local time on 4 February.