Memorandum 79
Supplementary submission from National
Grid
Ofgem and BERR have proposed a competitive tender
approach to appoint Transmission Owners for offshore networks
in order to deliver a regulated solution offshore that introduces
competitive benefits to end consumers. The world has changed significantly
since the original decision on the direction of the offshore regime
was made. Most importantly with the EU targets for c.40% renewable
generation by 2020. In order to achieve these targets offshore
wind needs to provide a strong contribution.
We do not think the proposed regulatory regime
for offshore transmission can deliver the Governments aspirations
for around 30GW of offshore renewables by 2020. The proposed regime
is overly complex with many areas of the regulatory arrangements
still uncertain and undecided. Further, we do not share the Ofgem/BERR
view on the consumer benefits in terms of cost that this regime
will produce. In National Grid's view, the deployment of simple,
co-ordinated, regulated transmission build is a more effective
approach to help meet the significant challenge which is ahead
of us in the next 12 years and we advocate the extension of the
regulated onshore transmission franchises to cover offshore transmission
for renewables.
We do recognise that National Grid as Great
Britain System Operator has to play an integral role and has a
significant responsibility in delivering the offshore transmission
regime and we are absolutely committed to supporting the Government
and BERR in the delivery of their regime.
April 2008
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