Agilia, a consultancy with experience advising some of the UK’s largest infrastructure projects, is supporting Ofgem, the country’s energy regulator, on a major consultation to extend competition in onshore electricity transmission.
As part of the consultation launched today, Ofgem released Agilia’s report that provides an overview of the proposed delivery model and sets out key commercial principles and risk allocation that may underpin a new way of working.
The consultation is the next step in Ofgem’s development of new models to bring more competition into the market and ultimately lower the cost of energy to consumers. The approach draws from experience on other major infrastructure projects – such as the Thames Tideway Tunnel – which successfully lowered the cost of capital, smoothed project financing over the long-term and avoided the need for large injections of finance from central government.
Agilia chief executive officer, Amar Qureshi, said:
“Agilia has worked closely with Ofgem to ensure that people can respond to this consultation with as much information as possible on how commercial principles and risks would look under this innovative new model.”
“The regulated rail, water and energy sectors have recognised that there are models that can deliver low-cost financing for major infrastructure projects, for example in the building of the Thames Tideway Tunnel. These industries are looking again at how contestability could lead to a new wave of competition and finance for new projects, which could ultimately lead to more efficient utilities and lower costs for customers.
“We want to help Ofgem to make sure companies operate the network efficiently and sustainably, while they make a return. We are delighted to have worked with Ofgem on this project and look forward to the outcome of the consultation.”
The consultation closes on 9 November 2018.