Ofgem’s latest CATO consultation closes Friday 22nd July
Friday 22nd July is the last chance to submit responses to Ofgem’s most recent consultation on Competitively Appointed Transmission Owners. The consultation document was written with specialist input and advice from TNEI.
Ofgem is proposing that transmission assets which have a capital cost greater than £100m (high value), which are completely new, and which are separable could be designed, built, owned and operated by third parties. These third parties will be determined via a competitive tender and will be known as CATOs “ Competitively Appointed Transmission Owners.
Ofgem has been developing the Competition in Onshore Transmission arrangements for several years, but time is running out if you want to comment on the most recent proposals. Their latest consultation “‘Extending competition in electricity transmission: criteria, pre-tender and conflict mitigation arrangements’, which was published in May, will close today (Friday 22nd July).
TNEI has provided ongoing support to Ofgem on the development of the CATO arrangements. A TNEI report outlining CATO tender specifications (co-authored with Pöyry Management Consulting) was published by Ofgem alongside their May consultation.
This consultation:
Describes Ofgem’s indicative work programme for introducing the regulations. Ofgem aims to be able to run competitive tenders by mid to late 2017.
Sets out the definitions which Ofgem will use when deciding which projects to tender. During the current RIIO-T1 price control, only Strategic Wider Works projects which meet the three criteria above will be tendered.
Explains what will happen before a tender including the proposed content of the tender specification. This is the focus area of TNEI’s report.
Introduces measures for mitigating conflicts of interest that tendering could introduce.
The document does not provide a pipeline of projects, although Ofgem states that by the end of the year they will consult on whether the connection of the proposed Moorside nuclear power station could be suitable for tendering. More information on potential projects can be found on Ofgem’s page for Strategic Wider Works, and within the Network Options Appraisal (published by National Grid).
TNEI is a specialist energy consultancy with a detailed understanding of the challenges faced by the power sector. We offer innovative and effective solutions in delivering energy related developments throughout the UK. We offer site finding, feasibility, engineering and all related consenting support utilising our extensive experience in the energy sector throughout the UK and beyond. If you would like any further information about how TNEI can support your interest in the proposed CATO process, or about the development of the transmission system in general, then please contact Gordon McFadzean, Senior Consultant or Jason McGray, Principal Consultant.
