The energy regulator said competitive tendering for new, separable, high-value onshore transmission assets will benefit consumers via cost savings and innovation.
National Grid will play an enhanced role in finding the future requirements of the onshore and offshore network. It needs to consider the value of more interconnection to other nations.
The latest move completes Ofgem’s Integrated Transmission Planning and Regulation project, which was launched in 2012.
Ofgem will now work with stakeholders to develop the tendering arrangements for onshore transmission assets. The first round is expected to be carried out in 2016 or 2017.
The changes to the system operator’s role are expected to be in place by summer, after a consultation period.
The changes will help improve transmission network in the UK as the country plans to reduce carbon emissions and replace old infrastructure.
Ofgem senior partner for transmission Martin Crouch said: "GB’s transmission network requires substantial investment over the next decade.
"Our decision today, to open competition for some onshore transmission assets and providing the system operator with more powers in network planning, will ensure the system is fit for purpose, and that consumers are getting value for money."
In December 2014, Ofgem unveiled a £17bn plan to upgrade the UK’s electricity network and connect small scale renewable energy projects to the grid.
Image: Ofgem plans to bring in enhancements into how network infrastructure is planned and regulated. Photo: Courtesy of Ofgem.
