GridLink has received a positive minded-to decision from Ofgem regarding the award of a cap and floor scheme. Ofgem’s analysis concluded that GridLink demonstrates significant consumer welfare benefits and presents the greatest net benefit to consumers of all interconnectors considered during the application window. Ofgem’s minded-to decision is currently subject to a consultation period after which Ofgem will announce its final decision in respect of GridLink.
GridLink has been granted an electricity interconnector licence under section 6(1)(e)
of the Electricity Act 1989. This important licence grants GridLink Interconnector Ltd the right to own and operate an interconnector for the transport of electricity in the UK.
GridLink has submitted an application for preliminary approval under Ofgem’s 25-year cap and floor regime. Ofgem created the cap and floor regime in order to encourage investment in electricity interconnectors and it provides the regulatory framework to enable GridLink to contribute to a new generation of interconnectors that will benefit UK and European energy producers and consumers. The application was submitted within the second window opened by Ofgem for projects to be considered for the cap and floor regime.
