2025-122 OFTO Cost Assessment Advisors

Key Details

Description

Ofgem is looking to procure the necessary Cost Assessment advisors for the Offshore Transmission Owners (OFTO) team to continue its regulatory duties. Provision of these services will be crucial and without this, Ofgem will be unable to run effective tender processes for the upcoming tender rounds. Ofgem are required to run a tender exercise for all offshore transmission projects that qualify under the Tender Regulations 2015. Provision of Cost Assessment consultancy support services will be crucial to ensure that a robust tender process takes place for upcoming tender rounds and without this, Ofgem will be unable to run an effective tender process. To facilitate a robust tender evaluation process, Ofgem requires the services of a supplier on various aspects of the tender and transaction process - evaluation of bidder submissions, and financial assessment required to bring the project to close/appoint an OFTO. Ofgem are required to undertake a cost assessment review of the OFTO assets for those projects that will be the subject of the tender process. This review is fundamental in determining the cost of building the transmission assets to ensure that those costs stated by the developer fairly reflect what will be transferred and that consumers are receive value for money. With this being the case, data submitted by the project developer must be carefully evaluated to ensure that assets are being transferred in the most economic and efficient manner possible.