DECC has published a white paper setting out draft legislation to open up the right to develop and operate onshore electricity transmission assets.
In its ‘Draft Legislation on Energy’ measures, transmission assets would no longer automatically be given to the regional monopoly operator, but would instead be awarded to a successful participant in a competitive tender process.
The draft legislation extending Ofgem’s powers would mean the three monopoly transmission companies in Britain, National Grid Electricity Transmission, Scottish Hydro Electricity Transmission and Scottish Power Transmission, will have to compete against other firms.
The move follows 2009 legislation that enabled Ofgem to run a competitive process for transmission infrastructure that connects offshore generators like wind farms to the mainland.
DECC said extending Ofgem’s powers to enable competitive tendering for onshore electricity assets could bring new players into the market, encourage innovation and bring significant savings to consumers.
Last October, Ofgem announced it was consulting on how to tender out new onshore electricity transmission infrastructure projects worth £100m or more. The first tender could take place in 2017, it said.
Image: T-pylon (National Grid)
DECC to open up onshore grid
White paper outlines competitive process for transmission projects
By EBS