Following on from Ofgem's consultation in March 2013 on the proposed cap and floor regulatory regime for Project Nemo, the proposed Belgium-England electricity interconnector, Ofgem is now inviting views on its related Impact Assessment. This latest Ofgem consultation comes hot on the heels of its consultation on the regulation of the importation of renewable energy generated outside of Great Britain in connection with the Ireland-England Energy Bridge Project.

The aim of the cap and floor regime is to facilitate further investment in interconnection other than through a merchant-exempt approach to ensure that the GB regulatory regime and investment is compatible with the regulatory regime in a greater number of adjoining States where interconnection is managed by TSOs and a merchant-exempt approach is not available.

Ofgem invites views on the impact of the proposed regime for Project Nemo on other planned interconnector projects and participants in those projects may wish to review and comment on this latest consultation.

As the next step, Ofgem intends to publish its decision on the cap and floor regime for Project Nemo in Spring 2014. Further details are also expected on its Integrated Transmission Planning Review at the same time, and these developments are likely to be closely watched by market participants in both GB and neighbouring countries, which may both be supported by greater interconnection.

To view the Ofgem consultation, please click here

To view our previous law-now on the regulation of the transmission of renewable energy generated outside of Great Britain, please click here