The Department of Energy and Climate Change (DECC) of the United Kingdom has released a white paper setting out draft legislation to extend competitive tendering in the British electricity transmission network.
This would mean that the right to develop and operate certain onshore electricity transmission assets would no longer automatically be given to the regional monopoly operator, but would instead be awarded to a successful participant in a competitive tender process. Based on the experience of the offshore competition regime and taking into account tender costs incurred by Ofgem, the British government estimates that the introduction of this system could, in a medium scenario, provide overall net estimated savings of £380m (€496m) (PV over 30 years, relating to assets tendered over the next 10 years, with benefits considered over 20 years for each asset).
In October 2015, the Ofgem announced that it was consulting on how to tender out new onshore power transmission infrastructure projects of £100m and more. The first tender could occur as early 2017.
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