Ofgem consults on proposed subsea link between GB and Norway

Energy regulator Ofgem has launched a consultation on proposals to award a cap and floor regulatory regime to the proposed NSN interconnector project, which would link the GB and Norwegian electricity systems via a 700 km subsea cable, allowing the two countries to trade power.

If built, the interconnector would allow the import of large quantities of hydropower from Norway to the UK. 

Ofgem’s consultation follows its assessment of the consumer benefits that the project is expected to deliver. These include more competition in the wholesale electricity market and lower wholesale prices, a more varied and secure supply of electricity, and increased access to renewable sources of energy at a lower cost. Ofgem has begun analysing development costs, design specifications and tendering arrangements to ensure that these deliver good value for consumers, and will also consult on detailed cost assessments, before setting provisional cap and floor levels for NSN’s future revenues.