Ofgem announced today that it is minded-to award FAB (and two other projects) a cap and floor regime. The cap and floor regime will guarantee that project revenues will always be at or above a floor level in return for consumers benefiting from revenues above a cap level.
Ofgem’s assessment has given them confidence that in respect of FAB there are likely to be significant net benefits for GB consumers. Ofgem is consulting on this minded-to position prior to a final decision in summer 2015.
The decision in Summer 2015 will be a key milestone for the project which requires a cap and floor regime for investment to proceed.