Ofgem has published a number of documents relating to the regulation of new assets, including a CEPA report on the cost of capital for different asset classes. These include:
- Interest During Construction for offshore transmission and future interconnectors under the cap and floor regime
The CEPA approach is available to download.
The Ofgem publications included the regulator's minded-to position of using a competition proxy approach for delivery of the transmission link to the Hinkley Point C nuclear reactor. Using this model to draw on benefits from competition could save consumers over £100m, according to Ofgem estimates.
To find out more about CEPA's services and the firm's experience, please contact Richard Rodger by email or T. +44 (0)20 7269 0210