Current cross-border arrangements prohibit long-term contracts. Our ability to offer long-term contracts benefits our customers directly by giving long-term flexibility in their portfolio and allowing them to efficiently hedge and manage their generation asset investment.
Flexible access arrangements
We listen to our customers and we proactively seek their input for the design of our access arrangements. This means that interconnector capacity can be optimised and the full trading benefit can be exploited.
Flexible capacity tariffs and minimised regulatory risk
Our capacity tariffs are generally exempted from regulatory oversight. This creates an assured stability preventing regulatory-induced price shocks and unexpected price increases over the life of the capacity contract.
Exceptionally high levels of availability
Channel Cable uses the very latest interconnector technology HVDC VSC Technology. This technology has a proven track record and ensures extremely high levels of availability – greater than 98%.
Purpose of the Open Season phase:
In the Open Season phase, all capacity applicants that have registered with Channel Cable during this phase exclusively, can submit binding offers for their requested capacity. After the evaluation and negotiation process and final allocation procedures, the transmission capacity purchase contracts will be concluded.
Channel Cable intends to establish a reserve price; this will be a conservative price and will be reflective of our opex, debt servicing requirement and a fair/reasonable rate of return. Channel Cable is incentivised to keep this low in order to ensure that there is demand for capacity.
The setting of a reserve price is allowable under paragraph 2.9 of the draft Congestion Management Guidelines in the case of new interconnectors, which benefit from an EU exemption.
What are the qualification criteria to acquire capacity?
Parties interested in securing transmission capacity will be required to demonstrate that they have sufficient financial strength to meet their contracted obligations to Channel Cable. Potential participants are therefore required to provide relevant financial information to Channel Cable. This can include credit ratings and financial guarantees.
To qualify for participation in the open season, entities must meet predetermined credit-worthiness standards. All entities that meet the minimum standards will be treated equally in the evaluation process.
Bids will be evaluated and capacity awarded so as to result in the greatest total net present value to Channel Cable as determined by evaluating the requested capacity, term of service, price and other commercial terms.
Because long-term capacity contracts are a unique offering, a minimum term for bids of five years has been specified.
|Term||Minimum term: 5 years – Maximum term: 20 Years|
|Blocks||Capacity Allocated in blocks of 20 MW each|
|Direction||Bi-Directional capacity blocks, (Consideration may be given to one way import / export blocks)|
|Connection / Receipt Points||Ninfield 400 kV substation in GB and Paluel in France.|
|Pricing||€ (x) MW – Month|
|Start Date||2nd Quarter 2021|
|End Date||Minimum of 10 years to Maximum of 20 Years from Start Date|
|Guaranteed Availability||98% excluding 3 days of scheduled maintenance during off-peak months|
|Availability Penalties||Details in the final Capacity User Agreement|
|Completion Guarantee||1st Quarter 2021|
|Delay LDs||Details in the final Capacity User Agreement|
|Delay Termination||Details in the final Capacity User Agreement|
|Performance Guarantee||Details in the final Capacity User Agreement|