Operations Other

In 2019 Ofgem split the Cap and Floor Financial Model into two separate models and applied this approach to IFA2 (IFA2CFFM1 and IFA2CFFM2). IFA2CFFM1 was defined to determine final cap and floor levels at the Post Construction Review (PCR) following final assessment of costs including decommissioning; IFA2CFFM2 was defined for use during the operational period to adjust cap/floor levels (including where required following revision of the baseline allowance for decommissioning costs). The change established the regulatory framework for how IFA2’s decommissioning costs would be assessed and revised over the asset life.