(Reuters) - UK energy regulator Ofgem has put forward a reduced provisional cap on developers' earnings from a planned 1.4 gigawatt power cable between Norway and Britain, saying that the new limit would benefit consumers.
In its final assessment of the North Sea Link, Ofgem has set a provisional annual earnings cap of 94 million pounds, with a floor price of 53 million pounds a year, it said on Tuesday.
These levels are lower than those in Ofgem's initial assessment, which had proposed a cap of about 140 million pounds and a floor of 75 million pounds. The reduction was because construction costs have fallen, Ofgem said.
The link is one of seven new interconnecters proposed to link the UK with neighbouring countries' power markets, adding about 11 GW of import capacity.