Nemo Link Electricity Interconnector first End of Period Assessment (EPA)
Summary
Ofgem publishes the first End of Period Assessment (EPA) for the Nemo Link electricity interconnector to Belgium. EPA assesses interconnector performance against the cap-and-floor regime at the end of each regulatory period.
Why it matters
Nemo Link is the first GB-Belgium interconnector, operational since 2019. EPA is the moment cap-and-floor assessments true-up. Sets a precedent for how Ofgem treats interconnector performance after the first regulatory period for other cap-and-floor projects.
Areas affected
Memo
Nemo Link Electricity Interconnector first End of Period Assessment (EPA) | Ofgem Please enable JavaScript in your web browser to get the best experience. BETA This site is currently in BETA. Help us improve by giving us your feedback . Close alert: Nemo Link Electricity Interconnector first End of Period Assessment (EPA) Publication type: Reports, plans and updates Publication date: 30 July 2024 Topic: Electricity interconnectors Print this page Related links Decision on the Post Construction Review of the Nemo Link interconnector to Belgium Determination of the Within Period Adjustment request made by Nemo Link Limited Share the page Share on Facebook Share on Twitter Share on LinkedIn Ofgem’s cap and floor regime was established to incentivise the development of electricity interconnectors in Great Britain. The regime sets a maximum (cap) and minimum (floor) level for the revenues that the interconnector licensee can earn over a 25-year period, with periodic assessments taking place every five years. To determine the End of Period Cap and Floor Revenue Adjustment term, cumulative revenues generated by the interconnector over each five-year period are compared against the cumulative cap and floor levels through an End of Period Assessment (EPA). Top-up payments are made to the interconnector licensee if the revenue value is below the floor; and similarly, the licensee pays revenues in excess of the cap to consumers. This publication details our determination of the first EPA for Nemo Link Limited with respect to the Nemo Link Interconnector to Belgium. The Relevant Assessment Period for this EPA is 31 January 2019 to 31 December 2023. As Nemo Link is jointly regulated by Ofgem in Great Britain and the Commission for Electricity and Gas Regulation (CREG) in Belgium, the value of the resulting Revenue Adjustment term is split 50/50 between GB and Belgian consumers. We also provide commentary on the operational performance of the Nemo Link interconnector and use this opportunity to look back at the estimates and values established at the project’s post construction review. Main document Nemo Link End of Period Assessment [PDF, 301.87KB] Print this page Related links Decision on the Post Construction Review of the Nemo Link interconnector to Belgium Determination of the Within Period Adjustment request made by Nemo Link Limited Share the page Share on Facebook Share on Twitter Share on LinkedIn Close