Heads of Terms for agreement SPV model onshore electricity transmission projects

Descriptions

This Scope of Work (SoW) sets out the Ofgem's requirements for consultancy support to be provided for the development of heads of terms for a generic delivery agreement between an incumbent Transmission Owner (TO) and Special Purpose Vehicle (SPV), where Ofgem decides to introduce competition into the delivery of onshore electricity transmission via the 'SPV model'. The delivery agreement should consider, amongst other things: - responsibilities (e.g. discharging of planning consents) and information sharing (e.g. reporting) between TO and SPV. - project design, specification and delivery requirements. - price and payment structure (e.g. how and when revenue flows). - arrangements for variations (e.g. to specification, programme or price). - how specific liabilities (e.g. in relation to construction delivery and operational performance) and risks are allocated and managed. - any performance incentives (upside and downside). - arrangements for completion and handover to the TO at the end of the revenue period. - credit rating and counterparty risk; and - step-in and termination arrangements, e.g. TO and SPV lender rights.