Ofgem has unveiled plans for a multi-billion-pound fund to accelerate Britain’s transition to clean energy and tackle supply chain delays.
The proposed Advanced Procurement Mechanism (APM), with a value of between £5 billion and £8 billion, would allow energy transmission companies to buy critical materials like steel, cables and switchgear years before they are needed.
The fund aims to ensure projects are ready to start construction as soon as planning permissions are granted, avoiding delays caused by rising global demand for infrastructure materials.
By securing these items in advance, transmission owners could also control costs, as prices for essential components steadily increase.
Ofgem has committed to strict governance for the fund, ensuring it is used only for its intended purpose, with any unused funds returned to consumers.
The consultation on the APM runs until 18th December 2024.
If approved, the mechanism is set to come into effect in early 2025,
