Ofgem concluded its consultation on integrated transmission planning and regulation (ITPR) on Tuesday with the final decision to give National Grid “extra responsibilities” to identify the future needs of the onshore and offshore electricity network as well as interconnectors with neighboring countries.
“This will help ensure that the network is planned and operated in an efficient, economical and coordinated way,” said Ofgem, adding that it will also lead to lower network charges to help keep consumer bills down.
The decision comes alongside its measures to boost competition in tendering for new network connections. The regulator said it will move forward with proposals to launch competitive tendering from 2016 or 2017.
“Competitive tendering for new, separable, high value onshore transmission assets will benefit consumers through cost savings and innovation,” the regulator said.
Ofgem’s senior partner for transmission Martin Crouch said: “GB’s transmission network requires substantial investment over the next decade. Our decision today, to open competition for some onshore transmission assets and providing the system operator with more powers in network planning, will ensure the system is fit for purpose, and that consumers are getting value for money.”