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< Ofgem voices its fears over the effect on energy companies of the credit crunch | Northern Ireland defers introduction of water bills until 2010 >
Ofgem refines proposals on windfarm connections
Ofgem has published what is expected to be its penultimate consultation on the proposed competitive regime for offshore windfarm connections.
The regulator has refined the arrangements in the light of pending European directives on unbundling. The directive will make it impossible for an offshore generator to take on a connection even if no other operator comes forward.
The industry remains wary of the planned competitive regime. Steve Holliday, chief executive of National Grid, told Utility Week he still thought contestability was the wrong approach to funding the links. He warned that the entire network had to be visible to ensure that expansion of grid capacity, including that for new nuclear plants and onshore wind, was efficient.
"The only way society can guarantee they are built in a timely way and make sure the system is optimised is if it is part of the rate base," he said.
The plans also received lukewarm support from a Lords select committee in its report, The Economics of Renewable Energy. Peers were "concerned that the use of competitive tenders implies a piecemeal approach... and the programme could become overly complex and costly".
They said Ofgem should implement the new system in a way that allowed for a co-ordinated approach.
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