Policy Consultation & Statutory Consultation: Pre-Operational Force Majeure event in the Third Window for Electricity Interconnectors

Consultation on Timelines and Incentives changes for the Third Cap and Floor Window for Interconnectors

A decision for this consultation was published on Tuesday 14 November 2023.

This consultation sets out our proposed approach to providing a means for interconnector projects of the Third Cap and Floor Window for Electricity Interconnectors that have encountered delays, caused by force majeure events, during the pre-operational period to request a later Regime Start Date for the Authority’s consideration.

It includes a statutory consultation on proposed modifications to the standard conditions of the electricity interconnector licence. We are interested in your views on our proposal to:

Insert a new standard condition 26B [Condition 26B. Delay to Regime Start Date caused by Pre-Operational Force Majeure (Third Window)] into Section G of the electricity interconnector licence; and

We are also seeking views on our proposal to put in place a complementary process for considering requests submitted before licence conditions, implementing the cap and floor regime, take effect in the licence granted to an affected licensee.

Minded-to Policy Decision on the framework applicable to the procedural steps, assessment, and decision-making for Pre-Operational Force Majeure requests made by Third Window licensees.

This process largely mirrors the mechanism contained in proposed new standard condition 26B.

This consultation more widely fits within the timelines and incentives framework applied to the Third Cap and Floor Window for Electricity Interconnectors. Separately we are in parallel consulting on new and modified incentives and concepts to the treatment of interconnector project delivery delays.

Please send responses by 31st March 2023 to: Cap.Floor@ofgem.gov.uk