Summary
The current connection charging policy for the distribution network here, is to charge customers seeking a new connection to the distribution network for the cost of any reinforcement to the network triggered by their connection request, as well as the cost of the lines and plant directly needed to make the connection.
Documents
- Increased socialisation of connection costs in the electricity distribution network
- Increased socialisation of connection costs in the electricity distribution network - short report
Consultation description
Changes in our electricity networks and the way we use them have made the current policy unfair to some users and restrictive to our path forward. For example, NIE Networks is currently undertaking the largest upgrade in our network history, through its RP7 price control. But RP7 will take six years to deliver, and more work may be needed after that. Some customers connecting to the network in areas which the RP7 upgrade has not yet reached, face potentially higher charges than those in other areas. In these areas the first customer to request a connection will be required to pay for the upgrades, which can then be used by subsequent customers seeking a connection, but who will not contribute to the cost of the upgrade. This is known as “first mover disadvantage”. The proposals in this paper will help remove the unfairness of this “first mover disadvantage”.
In addition, stakeholders say that charging for the reinforcement works is a barrier to connecting more renewable generation and to consumers installing Low Carbon Technologies such as heat pumps and Electric Vehicles (EVs).
This consultation puts forward a number of options for increasing the level of distribution reinforcement which is charged to general network costs. It sets out the benefits and likely costs of each option. The options have been developed drawing on experience from our near neighbours. The options set out which costs will still fall to customers seeking a new connection and discuss the use of a “High-Cost Cap” to ensure consumers do not pay for excessive reinforcement of the network because of individuals seeking a difficult or remote connection to the grid.
Ways to respond
Consultation closed — responses are no longer being accepted.