Ofgem will ensure that the investments in the connections are economic and efficient. This is the system that applies to the connection of onshore generation assets.

Extending the onshore regulated price control approach to offshore electricity transmission has a number of clear advantages for offshore wind farm developers and the efficient operation of the transmission system as a whole.

It will ensure consistency with regulatory arrangements onshore and ensure that responsibility for developing the offshore transmission network will be shared by the system operator and the transmission asset owners.

The regulated price control approach will have the additional environmental benefits as it will help to ensure a coordinated approach to the development of the offshore network, which will reduce unnecessary duplication of transmission assets. All the offshore operators that responded to the government's consultation exercise favoured this approach.

Commenting on the new regime, Malcolm Wicks said, 'This is an important step for Britain's offshore wind energy industry as the measures I am announcing will increase its viability by spreading grid connection costs over a number of years. This regulatory framework can also benefit the future development of wave and tidal marine technologies.'

MJInformation No: 21820