We’re working with industry stakeholders to identify how competition can be introduced to network investment to make sure this investment is delivered in a way that achieves best value for consumers and opens the door for innovative network solutions.
We are delivering an Early Competition Plan that outlines how competition could be introduced for the design, build and ownership of onshore transmission assets.
Early Competition refers to competition that occurs prior to the detailed design, surveying and consenting phases of asset development.
The plan will describe an end-to-end process of how early competition may work, set out how models for early competition could be implemented and outline the roles and responsibilities of all parties in the end-to-end process.
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.
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.