UK, Netherlands Regulators OK Power Link Capacity Auction Rules

The Netherlands Competition Authority and Britain's energy regulator Ofgem Thursday approved the rules for auctioning capacity on the BritNed electricity interconnector, linking Britain with the Netherlands.

The link marks a significant step toward creating a single European energy market and approval of the access rules has cleared the way for putting the cable into operation, Ofgem said in a statement.

"Increasing interconnection is an important way of making sure Britain can get electricity from a wide range of different sources. The approval of the access rules by Ofgem and the Dutch regulator is a big step forward for the project, and it safeguards customer interests by ensuring that access to capacity is fair and transparent," said Martin Crouch, Ofgem partner on European strategy.

Capacity on the 1,000 megawatt link, which is being developed by an independent company co-owned by power and gas network operator National Grid PLC (NGG) and TenneT Holding, will be available to the market through various types of auctions.

For example, capacity can be obtained for one year, one month, or the next day ahead. It can even be obtained for the day of transportation itself. The link will also introduce market coupling between the Dutch and British wholesale electricity markets, which should help to optimize its use.

-By Selina Williams, Dow Jones Newswires [phone]; [e-mail]