Statutory consultation on our proposal to insert new special conditions into the electricity interconnector licences held by Greenlink Interconnector Limited and NeuConnect Britain Limited to implement the cap and floor regime

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We are conducting a statutory consultation on proposals to modify the electricity interconnector licences held by Greenlink Interconnector Limited (GIL) and NeuConnect Britain Limited (NBL) in order to implement our cap and floor regime for their interconnector projects. We are interested in your views on our proposals to:

  • introduce new special licence conditions into the electricity interconnector licence held by GIL that will give effect to GIL’s specific cap and floor regime; and
  • introduce new special licence conditions into the electricity interconnector licence held by NBL that will give effect to NBL’s specific cap and floor regime.

Please respond to Cap.Floor@ofgem.gov.uk by 12 April 2021.

In addition, we welcome your views on the modifications we have made to our default cap and floor financial model to implement the relevant aspects of our May 2020 regime variations decision for the two projects:

  • GCFFM1 – Proposed cap and floor financial model 1 implementing aspects of our regime variations decision for GIL
  • NCFFM1 – Proposed cap and floor financial model 1 implementing aspects of our regime variations decision for NBL

Our draft GCFFM1 and NCFFM1 are published as subsidiary documents alongside this consultation. We will use the models to determine our preliminary cap and floor levels for the Greenlink and NeuConnect interconnectors (as applicable) following Financial Close by GIL and NBL. 

At the end of project construction or start of operation, we will use the models again to facilitate any updates we may have to make to the preliminary cap and floor levels to reflect our final views on a project’s delivery costs as recognised at our Post Construction Review (PCR) assessment stage. We expect to maintain the final GCFFM1 and NCFFM1 under that name on our website.