REG - OFGEM - OFGEM: EGL1 ASTI PENALTY EXEMPTION CONSULTATION

Iberdrola SAAnnouncement

10/04/2025 08:00

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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
(https://www.ofgem.gov.uk/consultation/eastern-green-link-1-delay-event) .

 

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
(https://www.ofgem.gov.uk/decision/eastern-green-link-1-project-assessment)

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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