Ofgem is extending its consultation on the cap and floor regime for electricity interconnectors included in Window 3.
This follows initial consultations in September 2023 on financial parameters for these interconnections.
Ofgem is now seeking further feedback on the methodology for setting the cap rate, including updates to the equity beta parameter, Total Market Return and Risk Free Rate.
The cap and floor regime aims to incentivise interconnector development by setting maximum and minimum revenue levels over a 25-year period, balancing risk and benefit between developers and consumers.
The final decision will be made after considering stakeholders’ views.
