---
title: "2021-175 Interconnector Policy Review"
ocid: "ocds-b5fd17-c4b4af70-34af-47f5-a1c7-5b8f77294c48"
canonical_url: "https://d3tenders.com/contract/?ocid=ocds-b5fd17-c4b4af70-34af-47f5-a1c7-5b8f77294c48"
markdown_url: "https://d3tenders.com/contract/ocds-b5fd17-c4b4af70-34af-47f5-a1c7-5b8f77294c48.md"
json_url: "https://d3tenders.com/contract/ocds-b5fd17-c4b4af70-34af-47f5-a1c7-5b8f77294c48.json"
source: "Contracts Finder"
current_stage: "Award"
buyer: "OFGEM"
published: "2022-02-23"
---

# 2021-175 Interconnector Policy Review

Buyer: OFGEM  
Current stage: Award  
OCID: ocds-b5fd17-c4b4af70-34af-47f5-a1c7-5b8f77294c48

[View canonical contract page](https://d3tenders.com/contract/?ocid=ocds-b5fd17-c4b4af70-34af-47f5-a1c7-5b8f77294c48)  
[Download OCDS JSON](https://d3tenders.com/contract/ocds-b5fd17-c4b4af70-34af-47f5-a1c7-5b8f77294c48.json)

## Summary

The procurement process relates to the "2021-175 Interconnector Policy Review," initiated by Ofgem, the UK regulatory authority for the electricity and gas markets. This tender, classified under the industry category of "Electricity, heating, solar and nuclear energy," was completed on February 23, 2022. The allocated budget for this contract is £69,900. The contract period spans from February 14, 2022, to May 13, 2022. The procurement method adopted was an open procedure, indicating a competitive tendering process where all interested suppliers were allowed to participate. The tender was contingent on a deadline that concluded on January 24, 2022.

This tender presents substantial opportunities for consultancy firms that specialise in energy policy, market analysis, and regulatory frameworks, particularly those with expertise in assessing the economic and environmental impacts of energy projects. Businesses that offer management consultancy services, especially those with capabilities in energy sector consultancy, would find themselves well-suited to compete for similar tenders. Engaging in such projects not only allows for participation in critical energy regulatory developments but also enables firms to expand their portfolios in the renewable energy consulting space.

## Notice

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...ime. * Appropriate indicators and detailed methodologies for the assessment of the impact of specific 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.

## Key Details

| Field | Value |
| --- | --- |
| Publication source | Contracts Finder |
| Latest notice | https://www.contractsfinder.service.gov.uk/Notice/2d5520d8-16d6-4b38-a281-b0414eac8e38 |
| Notice type | Award Notice |
| Procurement type | Standard |
| Procurement category | Services |
| Procurement method | Open |
| Procurement method details | Open procedure |
| Tender suitability | SME |
| Awardee scale | Large |
| All stages | Award |

## Dates

| Field | Value |
| --- | --- |
| Publication date | 23 Feb 2022 |
| Submission deadline | 24 Jan 2022 |
| Future notice date | Not specified |
| Award date | 11 Feb 2022 |
| Contract period | 14 Feb 2022 - 13 May 2022 |
| Recurrence | Not specified |

## Values

| Field | Value |
| --- | --- |
| Tender value | £69,900 |
| Lots value | Not specified |
| Awards value | £69,900 |
| Contracts value | Not specified |

## Status

| Field | Value |
| --- | --- |
| Tender status | Complete |
| Lots status | Not specified |
| Awards status | Active |
| Contracts status | Not specified |

## Buyer

| Field | Value |
| --- | --- |
| Main buyer | OFGEM |
| Locality | LONDON |
| Post town | East London |
| Postcode | E14 4PU |
| Country | England |
| ITL 1 | TLI London |
| ITL 2 | TLI4 Inner London - East |
| ITL 3 | TLI42 Tower Hamlets |
| Local authority | Tower Hamlets |
| Electoral ward | Canary Wharf |
| Westminster constituency | Poplar and Limehouse |
| Delivery location | Not specified |

## Supplier

| Field | Value |
| --- | --- |
| Number of suppliers | 1 |
| Supplier names | OVE ARUP & PARTNERS |

## CPV Codes

### Divisions

- 09 - Petroleum products, fuel, electricity and other sources of energy
- 71 - Architectural, construction, engineering and inspection services
- 79 - Business services: law, marketing, consulting, recruitment, printing and security
- 90 - Sewage, refuse, cleaning and environmental services

### Codes

- 09000000 - Petroleum products, fuel, electricity and other sources of energy
- 09300000 - Electricity, heating, solar and nuclear energy
- 09310000 - Electricity
- 71314000 - Energy and related services
- 79400000 - Business and management consultancy and related services
- 79410000 - Business and management consultancy services
- 79411000 - General management consultancy services
- 79411100 - Business development consultancy services
- 90713000 - Environmental issues consultancy services

## Release History

- 23 Feb 2022 at 17:45 - Award - Award Notice - https://www.contractsfinder.service.gov.uk/Notice/2d5520d8-16d6-4b38-a281-b0414eac8e38

## Documents

- https://www.contractsfinder.service.gov.uk/Notice/2d5520d8-16d6-4b38-a281-b0414eac8e38
  23rd February 2022 - Awarded contract notice on Contracts Finder
- https://www.mytenders.co.uk/search/show/search_view.aspx?ID=FEB163836
  NOTE: To register your interest in this notice and obtain any additional information please visit the myTenders Web Site at the link provided.

## Notice URLs

- http://www.ofgem.gov.uk

## Provenance

This Markdown file is an alternate public rendering of the D3 Tenders contract record. The canonical page is https://d3tenders.com/contract/?ocid=ocds-b5fd17-c4b4af70-34af-47f5-a1c7-5b8f77294c48. The underlying structured data is available as OCDS JSON at https://d3tenders.com/contract/ocds-b5fd17-c4b4af70-34af-47f5-a1c7-5b8f77294c48.json.