Published date: 18 January 2024

Awarded contract - This means that the contract has been awarded to a supplier.


Closing: 1 January 2024, 12am

Contract summary

Industry

  • Financial and insurance services - 66000000

  • Financial market regulatory services - 66152000

  • Financial consultancy, financial transaction processing and clearing-house services - 66170000

    • Financial consultancy services - 66171000

    • Financial management consultancy services - 79412000

Location of contract

Any region

Value of contract

£264,000

Procurement reference

MT231145

Published date

18 January 2024

Closing date

1 January 2024

Closing time

12am

Contract start date

8 January 2024

Contract end date

31 May 2024

Contract type

Service contract

Procedure type

Open procedure

Any interested supplier may submit a tender in response to an opportunity notice.

Contract is suitable for SMEs?

Yes

Contract is suitable for VCSEs?

No

Description

Ofgem require a critical review of ESO's proposed commercial model both in terms of the individual elements and the overall balance of the proposed package to likely investors and developers. This should be carried out for both large HVDC subsea cable projects (over GBP2bn) and smaller onshore projects (c.GBP500m) and be informed by relevant investor contacts.
The development of competition in the provision of onshore infrastructure delivery has been a long-term policy objective for Ofgem. Rather than awarding investment to incumbent monopoly TOs, a competition "for the market" can procure investment at lower cost to consumers, drive innovation and widen the supply chain for the delivery of critical network upgrades.
The need for changes to primary legislation to enable competition has previously limited our ability to date to fully develop and implement it. On 26 October the Energy Act 2023 received Royal Assent. This now allows for the awarding of electricity transmission and distribution licences through a competitive process and allows for delivery of network upgrades via competitive tender.
In the context of the scale of investment in networks required to deliver our net zero obligations the UK Government (HM Gov) has set out, via the Transmission Acceleration Action Plan (TAAP) that it is committed to announcing a suitable first project for competitive delivery by the end of 2024.
Having previously developed proposals for Late CATO competition (competitive tender takes place once detailed design work is completed) in 2016, Ofgem has more recently focused on the development of early competition (competitive tender takes place before the detailed design work is in place). In 2022, Ofgem decided that the Electricity System Operator (ESO) will carry out the early competition tenders and confirmed that it should complete the design of the commercial model and tender process.
Support is required from an organisation who will act in advisory capacity, by first carrying out a critical review of the Electricity System Operator's proposed commercial model for early competition in the electricity transmission sector.

More information

Links

Award information

Awarded date

5 January 2024

Contract start date

8 January 2024

Contract end date

31 May 2024

Total value of contract

£264,000

This contract was awarded to 1 supplier.

Cepa Llp

Address

Queens House, 55-56 Lincoln'S Inn Fields, London

Reference

Companies House number: OC326074

About the buyer

Contact name

Lynsey Gordon

Address

10 South Colonnade
Canary Wharf
London
E14 4PU
England

Telephone

+44 2079017000

Email

procurement2@ofgem.gov.uk

Website

http://www.ofgem.gov.uk