What are we trying to achieve?

• Unlocking value for consumers

  Competition in network development has the potential to unlock millions of pounds of consumer value by encouraging those who are responsible for transmission assets to use more innovative and cost-effective solutions to meet the needs of the electricity system. The Department for Business, Energy and Industrial Strategy indicate that, through the introduction of competition, consumers could see savings of up to £1 billion by 2050 on projects tendered over the next ten years.

• Fostering innovation

  Competitive pressure and involvement of new parties is likely to drive innovation and generate a wider range of ideas for solutions to system needs.

  Depending on the tender model there could be innovation in areas such as technology, design, supply chain management, raising of finance and operations.

  Effective competitions should be open to as many potential solutions as possible, including proposals from a full range of network (solutions requiring a transmission licence) and non-network solutions (a service or an asset which doesn’t require a transmission licence).

• Early competition supports the transition to a carbon-free network

  As the ESO leads Great Britain’s transition to net zero, cost savings achieved through introducing early competition will be important in helping drive lower transmission charges and make investment in low carbon generation more affordable or cheaper.

  This benefit is particularly important considering the role of the ESO in supporting Great Britain achieving net zero.

  We hope that early competition could also encourage sustainability as we are exploring whether this could be part of the criteria for tenders.

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