The Leading News & Information Service For The Facilities, Workplace & Built Environment Community

Monty Pylon - Ofgem Takes Comic Route To Hinkley C Grid Upgrade

Monty Pylon - Ofgem Takes Comic Route To Hinkley C Grid Upgrade
12 February 2018 | Updated 01 January 1970

Ofgem has confirmed it will use the comedy of competitive tender to try to knock £100m off the £800 million cost to connect Hinkley Point C to the grid.


Ofgem has confirmed that the cost just to connect the new Hinkley Point C nuclear reactor to the grid - let alone the build cost itself - will cost consumers at least £800 million.

Hinkley Point C will be built by a Franco-Chinese alliance. The cost of the project is effectively underwritten by UK consumers who will be obliged to pay what is almost certain to be an inflated rate for electricity produced by the plant. Many speculator also believe that by the time Hinkley C comes on line, other forms of generation will  be producing enough electricity for the UK's needs - making that produced by nuclear power station unnecessary...but the commitment to buy the electricity still remains.

Towards the end of last year a Parliamentary Committee slammed the decision to go ahead with Hinkley Point C for the mill stone it could turn out to be shackled around the necks of UK plc. The Committee was also aghast that the electricity produced by Hinkley C could not be transferred to the grid without a major upgrade... will cost consumers at least £800 million!..recovered from customers over 25 years after the upgrade is complete.



Now Ofgem’s plan to attempt to slice £100 million of that estimate by employing the benefits of - competition. (Announced as infrastructure giant Carillion went a result of under-bidding too much of its work in competitive tenders.)  

Under a ‘competition proxy’ approach, National Grid will build the infrastructure but Ofgem will set the company’s revenue for building and operating it on the assumption that all the work had been put out to tender.


The answer is blowing in the wind

Ofgem will set the revenue that National Grid is allowed to earn based in part on the regulator’s experience in tendering the ownership of transmission links to offshore wind farms. Successive tender rounds have cut the cost to consumers of connecting offshore wind by at least £700 million since 2009, says the regulator.

Picture: Monty Pylon - Ofgem will attempt to use the Dead as a Parrot approach of competitive tendering to knock £100 million of the grid Hinkley C related grid upgrade

Article written by Brian Shillibeer | Published 12 February 2018


Related Articles

New Housing in London at Risk as Electricity Networks Near Capacity

New developments in London may be stalled due to the electricity grid running out of capacity. According to a letter seen by the Financial Times, The Greater London...

 Read Full Article
Are You Ready for Ofgem's Targeted Charging Review?

Ofgem’s Targeted Charging Review could see thousands added to the cost of business’ electricity bills. The Targeted Charging Review (TCR) initiative...

 Read Full Article
Comment On National Grid Blackout Investigation

This week ending August 23, Ofgem published the initial report on the National Grid’s investigation into the blackouts that occurred on August 9. Tom Edwards...

 Read Full Article
Businesses Who Fixed Energy Contracts in 2022 Face 133% Rise

Data suggests that businesses that fixed their energy contracts at the peak of the energy market last year could face up to a 133 per cent rise in bills from April....

 Read Full Article
FM is Vital to Improving Nationwide Energy Usage

With the nationwide phase-out of fossil fuel hitting capacity-related stumbling blocks, better use of existing building data can reduce industrial demand-side energy...

 Read Full Article
FMs Have Four Weeks to Apply for Electricity Generation Funding

Facilities management companies that own or operate commercial electricity generation have just four weeks left to apply for funding that will help them update their...

 Read Full Article
Big Energy Saving Week 2022

Big Energy Saving Week, January 17-23, is the perfect opportunity for businesses to kick-start their energy efficiency plans for 2022 on the road to net-zero. COP26 in...

 Read Full Article
New CIBSE Guidance Focuses on Electrification in Buildings

New guidance on the design and operation of building electrical services that focus on the electrification of buildings in the drive to net-zero carbon has been published...

 Read Full Article
Holbein Gardens – London's All-Electric Building

Holbein Gardens, located at 7 Holbein Place in the heart of London’s Belgravia, will lead the way for future schemes on the road to achieving net-zero...

 Read Full Article
Business Energy Targets Should Consider Home Workers

An overall fall in workplace energy consumption as a result of UK lockdowns in 2020 was largely cancelled out by an increase in personal usage, as the government’s...

 Read Full Article