Interest During Construction (IDC) rates for 2026 to 2027 - Ofgem
Article Summary
- Key point
- Ofgem has set Interest During Construction (IDC) rates for OFTO projects reaching FID in 2026-2027, capped at 9.55% (pre-tax, nominal). This decision provides clarity on financing costs for future energy infrastructure.
- Why it matters
- No immediate change to household bills, but worth watching.
- Expected impact
- Mixed / neutral impact — A structural or regulatory development to monitor.
Ofgem has set Interest During Construction (IDC) rates for OFTO projects reaching FID in 2026-2027, capped at 9.55% (pre-tax, nominal). This decision provides clarity on financing costs for future energy infrastructure.
What This Means
Ofgem's IDC rates for future projects signal higher upfront capital costs for new energy infrastructure, a burden likely to be passed onto consumers through higher bills in the long term. We anticipate this will necessitate a closer look at the efficiency of these investments to mitigate the impact on UK bill-payers.
- Consumers: No immediate change to household bills, but worth watching.
- Businesses: Limited direct cost impact for businesses for now.
- Energy market: A structural or regulatory development to monitor.
From The Source
Ofgem · 14 April 2026
This summary and analysis is based on reporting from Ofgem. Read the full original article on their website.
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