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Ofgem are changing the way we charge for connecting to our network. Ofgem’s Access and Forward-Looking Charges Significant Code Review (SCR) was published on the 3rd May 2022 and the changes outlined will commence from the 1st April 2023, subject to Ofgem’s approval of the four DCUSA Change Proposals.
Access SCR changes will mean that Demand customers no longer pay a proportion of upstream reinforcement costs and Generation customers will only pay a proportion of reinforcement costs at the same voltage level as their point of connection (subject to the high-cost project threshold). All customers will still pay for the works to provide their new connection (known as the extension assets) either by the Distribution Network Operator (DNO) or by an Independent Connection Provider (ICP).
Applications for a Demand connection will not be required to contribute to reinforcement works unless they trigger the Demand High-Cost Project Threshold of £1,720/KVA or are deemed to be a Speculative Development.
Applications for a Generation connection will be required to contribute to reinforcement at the same voltage level as the point of connection. Reinforcement at the voltage level above will not be required to be paid subject to the High Cost Project Threshold of £200/kW. Please note that Connection of Energy Storage will be treated as generation for connection charging purposes. This applies to applications received by NGED on or after 1st April 2023.
Where a DNO/IDNO can’t provide the full capacity requested without reinforcement, it may issue an offer for a Curtailable Connection. Curtailment means:
A Curtailable Connection will include a Curtailment Limit, which will be set within the offer and, if exceeded, then payment will be due to the customer.
