Regulation of Offshore Distribution Consultation - November 2006

Starting Date: 22-11-06

Closing Date: 20-12-06

This is a consultation on the DTI’s proposal to exempt operators of offshore distribution systems by way of a class exemption from the requirement for a distribution licence.

The Government decided in March 2006 that the appropriate model for the regulation of offshore transmission systems is the extension of the onshore price control approach. This decision means that post commencement of sections 89 to 92 and 180 of the Energy Act 2004 there will be a regulatory framework for offshore transmission, including offshore licences.

In order to provide a clear, consistent and enduring offshore grid regime for all connections, DTI has considered the regulatory position of low voltage offshore connections (distribution systems).

This consultation seeks representations on the proposal to add, by order, a new class ‘D’ for offshore distribution to the existing distribution class exemptions in Schedule 3 to the Electricity (Class Exemptions from the Requirement for a Licence) Order 2001. All operators of distribution systems that only convey electricity from offshore generating stations to the onshore GB grid would qualify for this exemption, provided they do not hold a distribution licence and that they meet the conditions attached to the exemption.

The proposed statutory instrument will affect the operators of the low-voltage connections of the four existing offshore generating stations and it will apply to any future low voltage connections from offshore generating stations to the onshore GB grid.

This consultation will be of particular interest to those with existing offshore generating stations or those planning to build generating stations offshore, the GBSO, DNOs, IDNOs and parties to certain electricity industry codes, such as the Distribution Code.

 

Consultation Documents

Consultation Responses

© Crown copyright2008