Developers can now apply to get their plans for electricity links between the UK and other countries included in the “cap and floor” scheme which guarantees them a set level of payment for electricity.
There are two months to hand in applications for interconnectors to Ofgem, it announced yesterday, with the deadline of 30 September 2014.
The cap and floor will last for 25 years, starting from either the actual connection date to the UK grid or 1 January 2021, whichever is earlier.
The regulator reckons this time limit will encourage developers to submit “realistic business plans so that consumers are protected from unnecessary delays”.
Where there are “excessive delays” before commissioning Ofgem may revoke the decision to award a cap and floor as a “last resort”.
This is the first “window” to get involved in a cap and floor, with Ofgem planning a second application window, depending on whether developers indicate their interest by 1 May 2015.
If no developers express an intention to apply, Ofgem may delay or cancel the second application window.