In providing connection offers to customers, the DNOs incur Assessment & Design (A&D) costs which typically include the costs of DNO staff wages, undertaking surveys, site visits, drawing plans, accommodation and equipment amongst other things.
Previously, only customers that accept the offer are required to pay the A&D fees. These customers also paid the DNO costs of providing connection offers that are not accepted. In recent years, the number of connection applications and proportion of connection offers not being accepted has grown. This has led to an increase in the DNO resources required to prepare the connection offers and in the costs being spread across those who accept their offers.
From 6 April 2018, The Department for Business, Energy & Industrial Strategy (BEIS) introduced new regulations that allows DNOs to charge customers for their connection offer whether it is accepted or not. From 4 May we applied these charges to 33kV and 132kV connections. From 1 January 2019 we will be applying these charges to distributed generation connection applications over 1MVA at 6.6/11kV and intend to roll it out further to other connections at a later date.
For 33kV and 132kV connections the upfront A&D charge is £1,000 with the balance of £20,200 on acceptance for a full works acceptance and £15,800 for a Point of Connection only acceptance. For 6.6/11kV distributed generation schemes over 1MVA the upfront A&D charge is £1,000 with the balance of £5,870 on acceptance for a full works acceptance and £4,500 for a Point of Connection only acceptance. For Gen+ connections the upfront charge is £500 plus another £1,000 if you progress to full offer, with the balance due on acceptance. Further details can be found in our Connections Charging Statement.
The new legislation is supported by Ofgem who believe that the upfront fees will allow for a fairer allocation of costs by ensuring that customers who do not accept connection offers contribute to the costs of assessing their applications. It also allows DNOs to work more efficiently and improve the service our applicants receive.
For more information, please take a look at our A&D fees presentation