The Electricity (Competitive Tenders for Offshore Transmission Licences) Regulations 2013

PART 12 PREFERRED BIDDER STAGE

Notification of preferred bidder and reserve bidder

20.—(1) As soon as reasonably practicable after the Authority has determined the preferred bidder in respect of a particular qualifying project in accordance with regulation 18(1)(a) or 19(4), it shall publish a notice to that effect.

(2) As soon as reasonably practicable after the Authority has determined the reserve bidder in respect of a particular qualifying project in accordance with regulation 18(3) or 19(5), it shall give notice to that effect to that reserve bidder.

(3) The notice referred to in paragraph (1) must–

(a) specify the name and address of the preferred bidder; and

(b) describe, in general terms, the matters to be resolved by the preferred bidder to the Authority’s satisfaction as specified in paragraph (4)(a) or (b), as the case may be, before that preferred bidder becomes the successful bidder in accordance with regulation 27(1).

(4) The matters referred to in paragraph (3)(b) shall include–

(a) in the case of a generator build tender exercise–

(i) that the preferred bidder has established necessary arrangements to provide transmission services for that particular qualifying project;

(ii) that the preferred bidder has in place a bilateral agreement with the holder of a co-ordination licence to provide transmission services for that particular qualifying project;

(iii) that the preferred bidder has acceded to the contractual framework which defines the relationship between the holder of a co-ordination licence and any provider of transmission services that the co-ordination licence requires the holder of a co-ordination licence to have in force; and

(iv) any other matters which the Authority may determine are necessary in relation to that particular qualifying project; or

(b) in the case of a tender exercise other than a generator build tender exercise–

(i) that the preferred bidder has established necessary arrangements to construct the transmission assets and to provide transmission services for that particular qualifying project;

(ii) that the preferred bidder has in place a bilateral agreement with the holder of a co-ordination licence to provide transmission services for that particular qualifying project;

(iii) that the preferred bidder has acceded to the contractual framework which defines the relationship between the holder of a co-ordination licence and any provider of transmission services that the co-ordination licence requires the holder of a co-ordination licence to have in force; and

(iv) any other matters which the Authority may determine are necessary in relation to that particular qualifying project.

(5) As soon as reasonably practicable after the Authority has published a notice in accordance with paragraph (1), it shall give notice to the preferred bidder as to–

(a) the detail of the matters referred to in paragraph (4)(a) or (b), as the case may be, how such matters shall be resolved and by what date; and

(b) the amount of payment payable to the Authority as calculated in accordance with its cost recovery methodology in relation to the preferred bidder stage.

(6) Where–

(a) the matters referred to in paragraph (4)(a) or (b), as the case may be, are not resolved by the preferred bidder to the Authority’s satisfaction in accordance with the notice issued by virtue of paragraph (5)(a);

(b) the preferred bidder fails to make the payment referred to in paragraph (5)(b);

(c) the preferred bidder withdraws from the tender exercise in accordance with regulation 22(1); or

(d) the preferred bidder is disqualified from the tender exercise or tender round in accordance with regulation 26(1),

the Authority may withdraw the notice published in accordance with paragraph (1) by publishing a further notice to that effect.

(7) Where the Authority has published a further notice in accordance with paragraph (6), it shall discontinue the tender exercise with the preferred bidder and may determine to treat the reserve bidder (where such reserve bidder has been determined in accordance with regulation 18(3) or 19(5)), as if that reserve bidder were the preferred bidder in respect of a particular qualifying project.

(8) Paragraphs (1) and (3), (4), (5) and (6) shall apply in circumstances where the Authority determines to treat the reserve bidder as if it were the preferred bidder.

(9) The Authority shall give notice to any qualifying bidder of the fact that it is not a preferred bidder or a reserve bidder.

Particular obligations of the developer from preferred bidder stage

21.  In order to facilitate the making of the Authority’s determination of the successful bidder to whom an offshore transmission licence is to be granted in respect of a particular qualifying project in accordance with regulation 27(2), the developer shall from the date of the notice given in accordance with regulation 20(5) use its reasonable endeavours to–

(a) enable the preferred bidder to resolve the matters specified in the notice given in accordance with regulation 20(5) to the extent that the resolution of those matters depends on the actions of the developer; and

(b) enable the preliminary works or the transmission assets, as the case may be, in respect of that qualifying project to be transferred to the successful bidder.