Citizens Advice's response to Ofgem's consultation ‘Accelerating onshore electricity transmission investment’
We welcome the intentions of the proposals and the initial quantitative analysis that indicates that the net benefits to consumers would be between £0.5bn and £2bn.
The proposed activity will highly depend on having a well-integrated approach from Transmission Operators (TOs), Ofgem and the government to coordinate efficient development processes with clear signals to supply chains and network users. If this is not achieved the new renewable generation expected to be connected in 2030 “will not be able to do so in a full and safe manner”. Then “even if some generation can be safely connected to the onshore transmission network, there may be boundary transfer capability constraints elsewhere on the system which means that the electricity cannot be safely transmitted to where it is needed. This could lead to a substantial increase in constraint costs being paid to generators and passed on to consumers’ energy bills.”
We think this is correct and as a result, it is vital that Ofgem view net zero objectives as firm, legally binding targets and it does what is within its purview to deliver on the best view of necessary infrastructure at a reasonable cost to consumers. This means prioritising the avoidance of the most significant system costs consumers are exposed. We do not see Ofgem’s approach as cautious to consumer risk, there appears to be a significant risk of delay to transmission projects that deliver a clear benefits case.
We recognise that Ofgem is waiting for BEIS to facilitate planning and market reforms that will provide greater confidence in transmission delivery and utilisation, however, we think it will not be feasible for Ofgem to wait for or second guess these deliverables.