Distribution Network Operator (DNO), Northern Powergrid, changed how they manage the costs associated with the production of budget estimates, feasibility studies and connection offers for customers in order to make the process fairer.
Until now, the costs associated with these tasks were from anyone who proceeded with a connection offer. This approach led to increasing volumes of speculative applications that were never completed, which resulted in DNOs incurring costs and spending significant periods of time on tasks that were never completed.
Recently, Northern Powergrid implemented Connection Offer Expenses charges for the majority of its connection activities and they believe this as the fairest way to ensure that the costs associated with preparing estimates and connections offers are met by the customers who requested them.
Consequently, new connection customers applying to Northern Powergrid from 06 April 2018 will see a reduced rate from between 3% and 7% in the cost of new connections offer, depending on the market sector.
Here is how the new legislation works:
- When customers apply for a new connection, they will be advised of the requirement to pay a fee so they can make a decision if they want to proceed with the application or not.
- DNO is also offering a five working day “cooling off” period, which gives the possibility to the customers to cancel their application without being charged.
- When the DNO completes the work and provides the budget estimate, feasibility study or connection offer, they will send an invoice for the associated Connection Offer Expenses incurred.