Ofgem: OFGEM: EGL1 ASTI PENALTY EXEMPTION CONSULTATION

Iberdrola SA

10/04/2025 07:00

RNS Number : 4080E

OFGEM

10 April 2025

 

Ofgem has published a consultation on whether to grant a Penalty Exemption Period for the Eastern Green Link 1 electricity transmission project. The project is a Joint Venture of National Grid Electricity Transmission (NGET) and SP Transmission, part of SP Energy Networks (SPEN) is responsible for the delivery of the project.

 

The Joint Venture has applied for the exemption under Ofgem's Accelerated Strategic Transmission Investment (ASTI) framework's Output Delivery Incentive (ODI). Ofgem is consulting on rejecting the application.

 

The consultation document is here.

 

The ODI includes a mechanism for exempting Transmission Owners (TOs) from penalties under certain circumstances. TOs may apply for a PEP where a Delay Event has occurred. This would be granted under Part B of Special Condition 4.9 of the ASTI ODI.

 

EGL1 is an electricity transmission project that will connect the Scottish and English transmission networks via a c176km, 525 kilovolt (KV), two gigawatt (GW) High Voltage Direct Current (HDVC) marine cable, from East Lothian, Scotland to County Durham, England.

 

Ofgem has approved the full project funding allowance worth £2,001,104,4293 (2018/19 prices) for the delivery of EGL1 under the ASTI mechanism. For more see here

The ASTI framework is a streamlined regulatory framework, which currently covers 26 onshore electricity transmission projects crucial for achieving the UK's 2030 net-zero ambitions. It allows the TOs to access project funding to accelerate delivery of these projects.

 

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