Open Season Purpose

The Channel Cable interconnector project, owned by Channel Cable Limited will provide new transmission interconnector capacity from Normandy in France to Sussex in England (“Channel Cable”) to allow for cross-border electricity trading and further market integration.

This open season process (“Open Season”) provides a timely opportunity for potential capacity holders on Channel Cable to secure discounted rates for a long-term capacity commitment for transmission rights between France and Great Britain.

Channel Cable is finalising engineering specifications and ongoing permitting for construction of the interconnector.

The first phase of the Open Season conducted during the initial feasibility stages was informal and non-binding in nature.

Sufficient market support and demand was indicated through non-binding commitments to support progressing the project.

In this the second phase, the binding portion of the Open Season; Subject to concluding this commercial commitment process and specific conditions set out in the draft Capacity Purchase Agreement, Channel Cable intends to take the necessary steps to implement a new interconnector between France and Great Britain.

Regulatory

Channel Cable Limited holds an Interconnector Licence from Ofgem.

The regulatory framework for Channel Cable follows from the national implementation of the third EU Electricity Directive, which was adopted in 2009.

This legislation defines the legal and regulatory aspects of network access conditions. One of these aspects is the possibility (subject to conditions) to exempt certain new electricity interconnector infrastructure from the requirement to offer access on the basis of regulated tariffs.

Channel Cable has sought exemptions from regulated tariffs and third party access from the CRE in France and Ofgem in the Great Britain. The exemption is subject to approval by the national regulatory authorities and the European Commission.