Ofgem has confirmed it plans to open “new, ­separable and high-value onshore electricity transmission assets” valued at more than £100 million to competitive tender.
The assets would be owned and operated for 25 years by so-called Competitively Appointed Transmission Owners (Catos). The new owners would tender to receive an annual income, which would not be subject to price reviews. The extent of indexation would be bid as part of the tender and the benefits of post-tender debt refinancing would be shared between the Cato and consumers.