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Offshore Transmission: Work Programme

The principal mechanism which Ofgem and BERR intend to use to implement the new regulatory regime is through modifications to licences, codes and agreements. It is anticipated that at least the majority of these modifications would be made by the Secretary of State using powers provided to him under ss. 90 & 91 of the Energy Act 2004 (‘the 2004 Act’).

The Secretary of State intends to undertake a further consultation on the full regime before commencing his powers under the 2004 Act. The current aim would then be to subsequently make modifications to licence conditions, codes and agreements under sections 90 and 91 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. Once sections 90 & 91 have been commenced and all modifications made, the offshore regime will be "active". Once the Secretary of State has commenced sections 89 & 180 of the 2004 Act, the offshore regime will be 'live'.

As set out in the Government response to offshore transmission: a joint Ofgem/BERR policy statement of July 2007, the Government is seeking additional powers in the forthcoming Energy Bill to enable the Authority to run an effective tender process.

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 December 2008 and the dependence on the Energy Bill timetable. The Government is sensitive to the impact that any delay in the commencement of the regime may have on offshore generation projects and in the light of this the Government is considering that the final consultation planned for June 2008 may, if necessary, be shortened to an eight week period of consultation. The Government considers that this option, whilst still allowing an appropriate period for consultation, may have significant benefits in ensuring that the timetable is adhered to. It must be stressed that the Government recognises the importance of an appropriate consultation period and would welcome stakeholders’ views on this issue.

The key high level milestones and currently anticipated dates are set out below:

Date	Action
January 2008	Publication of Government Response document and Ofgem’s Consultation Document. Offshore Transmission Regulatory Regime: BERR / Ofgem External Communications Workshop Slides - 25th January 2008 (835KB)
January 2008 - April 2008	Consultation on draft licence, code and agreement modifications.
April 2008	Publication of final policy proposals.
June 2008	Consultation on full regime (subject to the completion of consultations on draft licence, code and agreement modifications).
September 2008	Consultation closes.
April 2009*	‘Go-Active’ commencement of ss. 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.
April 2010*	‘Go-Live’ commencement of ss. 89 & 180 of the Energy Act.

* The implementation date is dependent on the adoption of those powers which we expect to come into effect two months after Royal Assent of the Energy Bill in 2008.

To discuss any questions please contact John Overton or contact Paul Hawker