Revenue Secured

Ofgem issued its Post Construction Review decision for the North Sea Link (NSL) interconnector, confirming final values for the project’s cap-and-floor revenue regime. The Authority determined the Post Construction Adjustment terms and set final annual cap and floor levels (2015-16 prices) for NGNSL’s 50% share: a cap of £93.3m and a floor of £59.3m (PCAC £3.5m; PCAF £8.4m). The decision also published modified licence special conditions and final versions of the NSL Cap and Floor Financial Models to govern revenue assessment during operation. The decision followed NGNSL’s PCR submission and consultation earlier in 2023 and applied to revenues in the operational assessment periods after the project entered service.