Scottish Power and Scottish Hydro to face competition in bids for UK electricity grid works for first time

National GridUK regulator OFGEM is consulting on how to tender out new onshore electricity transmission infrastructure projects worth £100 million or more.  The first tender could take place in 2017.

Since 2009 links to offshore wind farms have been competitively tendered, saving consumers between £200 million and £400 million so far.

Now OFGEM wants to apply this successful formula to new, high-value onshore electricity transmission infrastructure. 

This means that the three monopoly transmission companies in Britain – National Grid, Scottish Hydro Electricity Transmission, and Scottish Power Transmission – will have to compete against other firms for the right to build and own new, high-value transmission assets.

OFGEM Chief Executive Dermot Nolan said: “Part of our role is to ensure that customers pay no more for energy infrastructure than they have to.

“We took a ground-breaking approach by opening up ownership of offshore links to competition and now we are going further. In future we will tender out high-value electricity infrastructure projects onshore. This ensures that customers get even better value for money from Britain’s grids.”

OFGEM video on how it regulates network costs and investment:

 https://www.ofgem.gov.uk/publications-and-updates/energy-network-%E2%80%93-launch-new-video-guide         

Pixie Energy

Pixie logo Pixie Energy is an incubator and a facilitator of strategic research and project work, focusing on energy regulation, policy and markets at the local and national level. Find out more about Pixie Energy here.

Local Energy Matters: Scotland

Local Energy Matters: Scotland is a free-to-download brochure with a focus on energy tariffs in the two Scottish electricity distribution regions, as well news on local energy and low-carbon schemes.

Previous editions can be download here.

Scottish energy market overview

You can read an overview of the Scottish energy market here.

Scottish Government energy feed