Ofgem launches consultation on OFTO regime evolution and extension
Ofgem has launched a consultation on the evolution of the Offshore Transmission Owner (OFTO) regime, focusing on extending OFTO revenue streams and improving the tender process. The consultation seeks stakeholder input on three main areas: the policy framework for revenue stream extensions, the optimal licence term relevant to the technical lifespan of OFTO assets, and measures to improve the efficiency of the tender process. Ofgem aims to maintain the regime’s effectiveness as early windfarms approach the end of their initial revenue periods. The consultation closes on 28 February 2025, with Ofgem intending to publish decisions in Q2 2025.