Published date: 5 January 2022

Closed opportunity - This means that the contract is currently closed. The buying department may be considering suppliers that have already applied, or no suitable offers were made.


Closing: 24 January 2022, 12pm

Contract summary

Industry

  • Petroleum products, fuel, electricity and other sources of energy - 09000000

  • Electricity, heating, solar and nuclear energy - 09300000

  • Electricity - 09310000

    • Energy and related services - 71314000

    • Business and management consultancy and related services - 79400000

    • Business and management consultancy services - 79410000

    • General management consultancy services - 79411000

    • Business development consultancy services - 79411100

    • Environmental issues consultancy services - 90713000

Location of contract

Any region

Value of contract

£40,000 to £75,000

Procurement reference

MT224866

Published date

5 January 2022

Closing date

24 January 2022

Closing time

12pm

Contract start date

14 February 2022

Contract end date

13 May 2022

Contract type

Service contract

Procedure type

Open procedure (below threshold)

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

This procedure can be used for procurements below the relevant contract value threshold.

Contract is suitable for SMEs?

Yes

Contract is suitable for VCSEs?

No

Description

On 13 December 2021 Ofgem published its decision on the interconnector policy review. That decision set out the next steps for GB interconnector regulation for the future, specifically with intent to open a third cap and floor window application round for interconnectors and a cap and floor pilot for multiple-purpose interconnectors (MPIs) in mid-2022. Ahead of those milestones Ofgem will be finalising details of the process and policy during an implementation period - one of those policy areas is how Ofgem assess the needs case of future interconnectors.
In the cap and floor regime consumer underwrite interconnectors when their revenues fall beneath a floor level, and money is returned to consumers when those revenues fall above the cap. It is therefore crucial that Ofgem is able to fully understand the impact of future projects on consumer interests. Ofgem concluded through the interconnector policy review that Ofgem should review and update its needs case assessment framework to reflect the full range of impacts of interconnection. Ofgem therefore require consultancy support to help develop this framework for assessing new interconnectors and multiple-purpose interconnectors at the initial project assessment (IPA) stage of the cap and floor regime.
Specifically, Ofgem requires:
* An interconnector and MPI needs case assessment framework that enables effective and transparent decision making by Ofgem on whether specific projects should be awarded a cap a...cific interconnectors and MPI on the following impact categories; market flows of electricity (socio-economic welfare), network costs (reinforcements), system operability impacts (including ancillary services), decarbonisation, flexibility, security of supply, and competition.
* Where possible, these methodologies should enable the quantification and monetisation of the relevant impacts, and the ability to unify those quantified impacts into a cost-benefit analysis. Where not possible, Ofgem expects this methodology to set out the relevant parameters of individual quantitative or qualitative assessment.
* A recommendation of the roles and responsibilities within the needs case framework within the context of the cap and floor regime IPA. Specifically, the parties best placed to implement each methodology, for example: Ofgem, independent consultants, the ESO, or the project developer.
* A recommendation of the best data sources to lean to inform those methodologies, for example: public data sets, network planning outputs or information provided by project developers. This should include a definitive list of submission materials from project developers to inform the needs case assessment.
* The needs case framework should clearly set out how the outputs of each methodology should be combined in order to make a decision on whether a project is in consumers' interest.
Please see attached 2021-175 Interconnector Policy Review ITT document for further information.

More information

Links

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