The Electricity (Early-Model Competitive Tenders for Onshore Transmission Licences) Regulations 2025

• (a) for any document or notice which must be delivered to or published by the tender party in accordance with these Regulations to be delivered or published by the time, date or in the manner specified in accordance with these Regulations, or

• (b) for any action which must be undertaken in accordance with these Regulations, to be completed by the time, date or in the manner specified.

• (2) Where this paragraph applies, the tender party must give notice to a bidder, qualifying bidder, provisional preferred bidder, preferred bidder, reserve bidder or successful bidder, as the case may be, that—

• (a) delivery or publication must be made by a different time or date or in a different manner, or

• (b) the action must be completed by a different time or date or in a different manner.

Conflicts of interest: duty to identify

36

• (1) Each tender party must take all reasonable steps to identify, and keep under review, in relation to an onshore transmission tender exercise any—

• (a) conflicts of interest, or

• (b) potential conflicts of interest.

• (2) A person who influences a decision made by or on behalf of a tender party in relation to an onshore transmission tender exercise is to be treated as acting in relation to the onshore transmission tender exercise.

Conflicts of interest: duty to mitigate

37

• (1) Each tender party must take all reasonable steps to ensure that a conflict of interest does not put a person involved in an onshore transmission tender exercise at an unfair advantage or disadvantage in relation to that onshore transmission tender exercise.

• (2) Reasonable steps may include requiring a person involved in that onshore transmission tender exercise to take reasonable steps.

Conflicts assessments

38

• (1) Before publishing an intention to commence notice in relation to an onshore transmission tender exercise, each tender party must prepare its own conflicts assessment in relation to the onshore transmission tender exercise.

• (2) A conflicts assessment must include details of—

• (a) conflicts or potential conflicts of interest identified in accordance with regulation 36, and

• (b) any steps the tender party has taken or will take for the purposes of regulation 37.

• (3) If a tender party is aware of circumstances that it considers are likely to cause a reasonable person to wrongly believe there to be a conflict or potential conflict of interest, a conflicts assessment must also include details of any steps the tender party has taken or will take to demonstrate that no such conflict or potential conflict exists.

• (4) Each tender party must—

• (a) keep any conflicts assessment under review,

• (b) revise the assessment as necessary, and

• (c) when an intention to commence notice is published or a notice is published in accordance with regulation 24(1)(b), confirm that a conflicts assessment has been prepared and revised in accordance with this regulation.

• (5) Paragraph (4) does not apply after—

• (a) the Authority has published its determination to award an onshore transmission licence pursuant to regulation 28(3)(a), or

• (b) an onshore transmission tender exercise has finished.

Existing licence holders

39

Where the successful bidder already holds a transmission licence—

• (a) the Authority may make such modifications of the existing licence as are necessary for the purpose of giving effect to the determination resulting from the onshore transmission tender exercise, and

• (b) references in these Regulations to the application for and grant of an onshore transmission licence are to be read accordingly.

Applicability of certain provisions

40

• (1) These Regulations do not prevent the Authority from considering or granting applications for onshore transmission licences in accordance with sections 6A and 6B of the 1989 Act⁵ except where an application for an onshore transmission licence relates to a qualifying project.

• (2) Sections 6A and 6B of the 1989 Act and any regulations made under them are dispensed with insofar as they relate to an application for an onshore transmission licence made pursuant to these Regulations.

SCHEDULE 1 — Qualifying Projects

1

The requirements in this Schedule are that the delivery body has provided to the Authority the following information to the Authority’s satisfaction—

• (a) its assessment as to how the project has met each criterion of a relevant electricity project suitable for an early-model tender exercise pursuant to the Electricity (Criteria for Relevant Electricity Projects) (Transmission) Regulations 2024⁶,

• (b) its assessment that there will be sufficient competition in an onshore transmission tender exercise for the project that the award of an onshore transmission licence in respect of that project will contribute to the protection of the interests of existing and future consumers in relation to electricity conveyed by distribution systems or transmission systems,

• (c) the indicative dates and times for key milestones for the onshore transmission tender exercise, and

• (d) any other such information in relation to the pre-qualification stage of the onshore transmission tender exercise as the Authority may determine is necessary.

SCHEDULE 2 — Entry Conditions

1

The conditions in this paragraph are that the delivery body has, to the Authority’s satisfaction—

• (a) obtained sufficient information to issue an information memorandum and establish a data room,

• (b) provided the proposed pre-qualification documentation to the Authority, which must include the information specified in paragraph 2,

• (c) provided to the Authority an update of its assessment required in accordance with paragraph 1(b) of Schedule 1,

• (d) provided to the Authority updated indicative dates and times for key milestones required in accordance with paragraph 1(c) of Schedule 1,

• (e) provided to the Authority a system specification in respect of the project completed, as far as possible, with all relevant information available to the delivery body and provided an undertaking in writing to the Authority to continue to complete the system specification with all relevant information,

• (f) provided to the Authority its conflicts assessment prepared in accordance with regulation 38(1),

• (g) subject to approval of the confidentiality agreement by the Authority, received a confidentiality agreement signed by the holder of an electricity system operator licence and the holder of any transmission licence which could be affected by the qualifying project, and

• (h) complied with such other conditions as the Authority may determine are necessary in relation to that project.

2

The information specified in this paragraph for pre-qualification in relation to an onshore transmission tender exercise is as follows—

• (a) the proposed rules particular to the pre-qualification stage of the onshore transmission tender exercise,

• (b) the proposed pre-qualification questionnaire,

• (c) the proposed instructions that apply to the pre-qualification questionnaire,

• (d) the proposed date, time and manner in which the completed pre-qualification questionnaire is to be submitted to the delivery body,

• (e) the proposed evaluation criteria to be applied by the delivery body in evaluating a completed pre-qualification questionnaire submitted to the delivery body, and

• (f) any other such information in relation to the pre-qualification stage of the onshore transmission tender exercise as the delivery body may determine is necessary.

SCHEDULE 3 — Pre-Qualification

1

The information specified in this Schedule is as follows—

• (a) the rules particular to the pre-qualification stage of the onshore transmission tender exercise,

• (b) the pre-qualification questionnaire,

• (c) the instructions that apply to the pre-qualification questionnaire,

• (d) the date, time and manner in which the completed pre-qualification questionnaire is to be submitted to the delivery body,

• (e) the evaluation criteria to be applied by the delivery body in evaluating a completed pre-qualification questionnaire submitted to the delivery body, and

• (f) any other such information in relation to the pre-qualification stage of the onshore transmission tender exercise as the delivery body may determine is necessary.

SCHEDULE 4 — Invitation To Tender

1

The information specified in this Schedule is as follows—

• (a) the rules particular to the invitation to tender stage of the onshore transmission tender exercise,

• (b) a description of the information required by the delivery body for the submission of a tender,

• (c) the date, time and manner in which a tender is to be submitted to the delivery body,

• (d) the evaluation criteria to be applied by the delivery body in evaluating tenders,

• (e) the criteria to be applied by the delivery body in determining whether to hold a best and final offer stage, and

• (f) any other such information in relation to the invitation to tender stage of the onshore transmission tender exercise as the delivery body may determine is necessary.

SCHEDULE 5 — Best And Final Offer

1

The information specified in this Schedule is as follows—

• (a) the rules particular to the best and final offer stage of the onshore transmission tender exercise,

• (b) a description of the information required by the delivery body for the submission of a best and final offer,

• (c) the date, time and manner in which a best and final offer is to be submitted to the delivery body,

• (d) the evaluation criteria to be applied by the delivery body in evaluating best and final offers, and

• (e) any other such information in relation to the best and final offer stage of the onshore transmission tender exercise as the delivery body may determine is necessary.

SCHEDULE 6 — Delivery Body Functions Assessment Report

1

The information specified in this Schedule is as follows—

• (a) the reasons for the determination by the delivery body in evaluating the pre-qualification stage, including the scoring for the evaluation criteria and result obtained by each bidder,

• (b) where applicable, justification by the delivery body for its decision to undertake a best and final offer stage,

• (c) any changes to the qualifying project,

• (d) the progress of the onshore transmission tender exercise against the indicative dates and times for key milestones provided by the delivery body to the Authority in accordance with paragraph 1(d) of Schedule 2,

• (e) details of any withdrawals or disqualifications of bidders, and

• (f) any other such information in relation to any stage of the onshore transmission tender exercise as the Authority may determine is necessary in relation to the exercise by the delivery body of its functions conferred by these Regulations.

SCHEDULE 7 — Events Of Re-Run

1

The events in this Schedule are—

• (a) a material change to the qualifying project,

• (b) the delivery body does not receive any completed and compliant pre-qualification questionnaires in accordance with regulation 11,

• (c) the delivery body does not receive any completed and compliant tenders in accordance with regulation 13,

• (d) the delivery body does not receive any completed and compliant best and final offers in accordance with regulation 14,

• (e) a provisional preferred bidder withdraws or is disqualified from an onshore transmission tender exercise,

• (f) a preferred bidder withdraws or is disqualified from an onshore transmission tender exercise and the delivery body has not determined a reserve bidder in respect of that qualifying project,

• (g) the matters referred to in the notice published in accordance with regulation 18(5) are not resolved by a preferred bidder and the delivery body has not determined a reserve bidder,

• (h) a reserve bidder withdraws or is disqualified from an onshore transmission tender exercise after a preferred bidder has withdrawn or has been disqualified from that onshore transmission tender exercise or after a preferred bidder has failed to resolve the matters referred to in the notice published in accordance with regulation 18(5),

• (i) a successful bidder withdraws from an onshore transmission tender exercise,

• (j) a successful bidder has been disqualified from an onshore transmission tender exercise,

• (k) a successful bidder fails to make a payment in accordance with regulation 24(3), and

• (l) the Authority determines that it would not be appropriate to grant an onshore transmission licence to any qualifying bidder.

SCHEDULE 8 — Events Of Cancellation

1

The events in this paragraph are—

• (a) there are no bidders or qualifying bidders in respect of a qualifying project,

• (b) a project fails to meet, or ceases to meet, any criterion of a relevant electricity project suitable for an early-model tender exercise pursuant to the Electricity (Criteria for Relevant Electricity Projects) (Transmission) Regulations 2024⁷, and

• (c) a qualifying project fails to meet, or ceases to meet, the entry conditions specified in paragraph 1 of Schedule 2, in accordance with regulation 7.

2

The event in this paragraph is a change in circumstances that is likely to result in the interests of existing and future consumers being materially negatively affected if an onshore transmission licence is awarded at the conclusion of the onshore transmission tender exercise.

SCHEDULE 9 — Events Of Disqualification

1

The events in this Schedule in relation to bidder, qualifying bidder, provisional preferred bidder, preferred bidder, reserve bidder or successful bidder, as the case may be, are—

• (a) causing or inducing any person to enter into an agreement to collude or to inform a holder of an electricity system operator licence, holder of a transmission licence, bidder, qualifying bidder, provisional preferred bidder, preferred bidder, reserve bidder or successful bidder of the amount of any rival tender,

• (b) a material breach of any rules particular to the pre-qualification, invitation to tender and best and final offer stages of an onshore transmission tender exercise or any requirements specified in these Regulations,

• (c) submitting any information to a tender party which is false or misleading unless the provision of further information is acceptable to the tender party,

• (d) engaging in, attempting to engage in, allowing or encouraging any anti-competitive behaviour by or between any holder of an electricity system operator licence, holder of a transmission licence, bidder, qualifying bidder, provisional preferred bidder, preferred bidder, reserve bidder or successful bidder,

• (e) having been determined by the Secretary of State to pose a threat to the national security of the United Kingdom,

• (f) doing anything which would constitute the commission of an offence under section 1, 2 or 6 of the Bribery Act 2010⁸,

• (g) failure to make any payment or provide any security as required in accordance with these Regulations, unless that failure has been remedied within a period not exceeding ten days in accordance with regulation 33,

• (h) fixing or adjusting the amount of its tender by or in accordance with any agreement or arrangement with any other bidder, qualifying bidder, provisional preferred bidder, preferred bidder, reserve bidder or successful bidder or by improperly using insider information,

• (i) entering into any agreement or arrangement with any other bidder, qualifying bidder, provisional preferred bidder, preferred bidder, reserve bidder or successful bidder to refrain from submitting a tender or as to the amount of the tender submitted,

• (j) communicating to any person other than the tender party the details of its proposed tender in respect of a qualifying project, except where this disclosure is made in confidence in order to obtain quotations necessary for the preparation of that tender,

• (k) where the bidding entity is a bidder group, any change to the membership of that bidder group other than a change which has been permitted by the delivery body,

• (l) offering to pay or give any sum of money, inducement or valuable consideration directly or indirectly to any officer of the tender party or the holder of a transmission licence affected by a qualifying project in relation to any actions or omissions,

• (m) contacting any officer of the tender party or the holder of a transmission licence affected by a qualifying project, outside any rules particular to the pre-qualification, invitation to tender and best and final offer stages of an onshore transmission tender exercise or any requirements specified in these Regulations, including without limitation contact for the purposes of discussing the possible transfer of such officer to the employment of the bidder, qualifying bidder, provisional preferred bidder, preferred bidder, reserve bidder or successful bidder for the purpose of an onshore transmission tender exercise,

• (n) deriving an unfair advantage from having participated in preliminary market engagement in relation to an onshore transmission tender exercise where that advantage cannot be avoided,

• (o) deriving an unfair advantage from a conflict of interest and either—

• (i) the advantage cannot be avoided, or

• (ii) the bidder, qualifying bidder, provisional preferred bidder, preferred bidder, reserve bidder or successful bidder will not take steps that the Authority considers are necessary in order to ensure it does not derive an unfair advantage, and

• (p) having its application for the onshore transmission licence which is the subject of the onshore transmission tender exercise refused or cancelled by the Authority in accordance with regulation 27 or permanently withdrawing its application.

Signed

The seal of the Gas and Electricity Markets Authority here affixed is authenticated by the signature of

Mark McAllister — A member of the Gas and Electricity Markets Authority — 26th March 2025

Signed by authority of the Secretary of State for Energy Security and Net Zero

Michael Shanks — Parliamentary Under Secretary of State — Department of Energy Security and Net Zero — 3rd April 2025

Explanatory note

(This note is not part of the Regulations)

EXPLANATORY NOTE

Sections 6C-6CD of the Electricity Act 1989 (“the Act”) enable the Gas and Electricity Markets Authority (“the Authority”) to make regulations in respect of competitive tenders for a “relevant electricity project” as defined in section 6BA(1) of the Act. Projects competitively tendered under this instrument will be those where the design, construction and delivery of the project is to be tendered.

Tenders must be run by a “delivery body” with some key decision-making by the Authority in the tender process. The Authority is also responsible for conducting the licence application process in respect to the grant of a transmission licence to a “successful bidder” at the end of the tender exercise.

The competitive tender exercise comprises the following stages:

• A pre-qualification stage for the delivery body to determine which bidders are to become qualifying bidders (regulations 10 & 11),

• An invitation to tender stage for the delivery body to determine which qualifying bidder is to be selected to become the preferred bidder (regulations 12 & 13),

• Where the delivery body determines, in accordance with the criteria set out in the invitation to tender documentation, that there is to be a best and final offer stage (regulation 14),

• A delivery body functions assessment stage for the Authority to review the exercise by the delivery body of the functions conferred on it by this instrument (regulation 15), and

• A preferred bidder stage for the delivery body to determine the successful bidder of the tender exercise, who will be proposed to be granted on onshore transmission licence in respect of the qualifying project subject to this instrument (regulations 16-18).

A full Impact Assessment was published alongside the Electricity (Designation of Delivery Bodies) (Transmission) Regulations 2023 (S.I 2023/1228) that covers the impacts of introducing a competitive tender process to the electricity onshore network, as now implemented by these Regulations. The impact assessment is available from the Department for Energy Security and Net Zero at 3-8 Whitehall Place, London, S1A 2EG and is published with the Electricity (Designation of Delivery Bodies) (Transmission) Regulations 2023 onlegislation.gov.uk.

Footnotes