Events, Webinars and FAQs

The criteria for running an Early Competition are being developed with stakeholders as part of the work to develop the Early Competition Plan.

In the RIIO-2 Sector Specific Methodology Decision Document published May 2019, Ofgem asked TOs to set out in their RIIO-2 business plans projects which met an ‘early competition’ criteria – projects that are at least £50 million in value and which are contestable (i.e. there is potential for alternative solutions).

This was to provide initial visibility of the pipeline of potential projects. Ofgem expect the final criteria to be developed as part of the Early Competition Plan. 

We are seeking further input to this question through our Phase 2 Consultation. 

No, CATO legislation is not required before the implementation of Early Competition.

Ofgem’s request specified that the models for Early Competition should be able to operate before and after any CATO legislation.

No, Ofgem see a role for both early and late competition. 

The Early Competition Plan project focuses solely on models of Early Competition, where the competition occurs before a detailed solution is produced. 

Ofgem are continuing to develop the process for late competition (i.e. competition that occurs after the solution is designed and consented).

The ESO has already begun the process of introducing competition into electricity transmission through our Network Development Roadmap Pathfinders.

The pathfinders focus on seeking wider “whole system” solutions to transmission system needs that do not require a transmission license.

However, the pathfinders are limited to the procurement of non-network services, while early competition looks to facilitate competition across both network and non-network transmission solutions.

As the development of both processes continues, we will consider the circumstances where each approach is most appropriate and where, in future, they can potentially be merged.