Ofgem issues Scoping Document on offshore electricity transmission

The UK Government has announced that the existing principles of onshore electricity transmission should be extended to offshore. This follows the conclusion of an industry-wide consultation on the establishment of a regulatory regime to encompass offshore transmission.

Ofgem (who will be administering the regulatory arrangements) has now released its Scoping Document setting out its plan and timetable for implementing the Government’s regulatory framework. This document sets out how Ofgem intends to take forward work on issues such as:

• the geographical scope, and method of allocation, of offshore transmission licences.

• the design of price controls for offshore transmission licensees.

• the feasibility and appropriateness of extending the technical rules for onshore electricity to offshore.

• the changes required to licence conditions and industry codes in order to deliver the regulatory arrangements for offshore electricity transmission.

Ofgem’s document is the first stage of implementing the regulatory arrangements for offshore transmission assets. It provides useful information to energy companies interested in offshore renewable generation and offshore electricity transmission. It is anticipated that the Government will undertake a further consultation on the exercise of the relevant Energy Act powers once the programme of work set out in Ofgem's document has reached an appropriate stage.

To read Ofgem’s Scoping Document, click here.

This article was written for Law-Now, CMS Cameron McKenna's free online information service. To register for Law-Now, please go to www.law-now.com/law-now/mondaq

The original publication date for this article was 12/04/2006.