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DECC and Ofgem are working together to implement the new offshore transmission regulatory regime through modifications to licence conditions, industry codes and agreements. The aim is that majority of these modifications would be made by the Secretary of State using powers provided to him under sections 90 & 91 of the Energy Act 2004 (‘the 2004 Act’).
As set out in the Government response to offshore transmission: a joint Ofgem/BERR policy statement July 2007, the Government is seeking additional powers in the forthcoming Energy Bill to enable the Authority run an effective tender process.
The Offshore Transmission regime will ‘go active’ once sections 90 & 91 of the Energy Act 2004 have commenced and all modifications made. The regime will ‘Go Live’ once the Secretary of State has commenced sections 89 & 180 of the Energy Act 2004. Any modifications required to be made by Ofgem will also be made at this time under the Electricity Act 1989 modifications procedures.
The Secretary of State intends to undertake a further consultation on the full regime before commencing his powers under the 2004 Act. As a result, the implementation date of the new regime will be dependent on the commencement of those powers which we expect to come into effect two months after Royal Assent of the Energy Bill in 2008.
The Government recognises the significant work required to enable this timetable to be achieved particularly in relation to the proposed ‘Go-Active’ date in June 2009 and the dependence on the Energy Bill timetable. The final 6 week consultation is currently planned for early 2009.
The key milestones are set out below:
| Date | Action |
|---|---|
| June 2009 | ‘Go-Active’ commencement of sections 90, 91 & 92 of the Energy Act 2004. Modifications made to licences and associated codes & agreements. First tender process commences, including for those with connections to be adopted. |
| June 2010 | ‘Go-Live’ commencement of sections 89 & 180 of the Energy Act 2004. |
DECC/Ofgem published the Offshore Transmission Implementation Plan showing the activities that we expect will need to begin before Go Live.
To discuss any questions please contact John Overton or contact Paul Hawker
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