Citation, commencement and extent

1. —(1) These Regulations may be cited as the Electricity (Criteria for Relevant Electricity Projects) (Transmission) Regulations 2024 and come into force on 12th March 2024.

(2) These Regulations extend to England and Wales and Scotland.

Interpretation

2. In these Regulations—

“ the Act ” means the Electricity Act 1989;

“ early-model tender exercise ” means a tender exercise which relates to a project before the completion of preliminary works;

“ electricity solution ” means an asset or service delivered by a project;

“ late-model tender exercise ” means a tender exercise which relates to a project after the completion of preliminary works;

“ network need ” means a constraint on, or a requirement of, a transmission system( 2 );

“ preliminary works ” means—

“ tender exercise ” has the meaning given in section 6CD(3) of the Act( 3 ).

Criteria for projects

3. —(1) Subject to paragraphs (2) to (4), the criteria in regulations 4 to 8 are specified in respect of a project that relates to a transmission system, for the purposes of section 6BA(1)(b) of the Act.

(2) These Regulations do not apply to a project or any part of a project which is or may be subject to determination on a competitive basis of the person to whom an offshore transmission licence( 4 ) is to be granted under the Electricity (Competitive Tenders for Offshore Transmission Licences) Regulations 2015( 5 ).

(3) The criterion in regulation 7 applies only to early-model tender exercises.

(4) The criterion in regulation 8 applies only to late-model tender exercises.

Network Need criterion

4. A project’s electricity solution must be capable, with reasonable certainty, of addressing a network need.

Novelty criterion

5. —(1) A project’s electricity solution must, in respect of the transmission system and network need to which it relates, be wholly new.

(2) In this regulation “wholly new”, in respect of an asset, includes the entire replacement of an asset which forms part of a transmission system.

Separability criterion

6. —(1) A project’s electricity solution must be capable of being clearly distinguishable from any other part of the transmission system to which it relates and from any other electricity solution related to that transmission system.

(2) In respect of an early-model tender exercise, the ownership and control of a project’s electricity solution (including relevant planning consents and property rights) must be capable of being separable from the ownership and control of any part of the transmission system to which it relates and any other electricity solution which relates to that transmission system.

(3) In respect of a late-model tender exercise, the ownership and control of a project’s electricity solution (including relevant planning consents and property rights) must be separable from the ownership and control of any part of the transmission system to which it relates and any other electricity solution which relates to that transmission system.

Consumer benefit criterion in respect of an early-model tender exercise

7. —(1) A cost-benefit analysis in respect of a project must demonstrate that the non-tendered consumer impact does not outweigh the tendered consumer impact.

(2) In this regulation—

“ cost-benefit analysis ” means—

“ non-tendered consumer impact ” means the estimated overall impact of a network need being addressed otherwise than through a tender exercise;

“ tendered consumer impact ” means the estimated overall impact of a network need being addressed by a project through a tender exercise.

High value criterion in respect of a late-model tender exercise

8. —(1) A project must have an estimated capital expenditure equal to or greater than £100,000,000.

(2) In this regulation “ estimated capital expenditure ” means an estimate of the total costs of a project, calculated by reference to one or more of the following—

(a) any costs relating to the purchase of component parts;

(b) construction costs;

(c) the costs of the acquisition of land on which it is to be situated;

(d) the costs of compliance with the conditions attached to planning consents and property rights;

(e) the costs of third-party works upon which a project’s electricity solution’s operation depends;

(f) project management costs;

(g) itemised risk and contingency allowances;

(h) costs relating to the procurement of itemised goods, services and works;

(i) any other costs that are reasonably integral or relevant to the arrangement, construction, commissioning, procurement, operation or function of the project’s electricity solution.