Download the full outcome
Detail of outcome
We sought views on a draft Statutory Instrument to allow distribution network operators (DNOs) to charge Assessment & Design (A&D) fees to connection applicants (irrespective of whether they accept the subsequent connection offer). We also sought views on our initial assessment of the economic impacts.
We have decided to allow DNOs to charge connection applicants A&D fees irrespective of whether they accept the subsequent connection offer.
We made some changes to the draft Statutory Instrument, in response to stakeholder views, to ensure that it fully covers DNO activities in processing connection applications and provides greater clarity on how DNOs must notify connection applicants of the A&D fee.
The government has laid the Statutory Instrument (The Electricity (Connection Offer Expenses) Regulations 2018) before Parliament. It will come into force on 6 April 2018 and applies where DNOs charge A&D fees to connection applicants irrespective of whether they accept the subsequent connection offer.
Should DNOs decide to change how they charge A&D fees from the current method, they will be expected to engage with stakeholders in a timely manner. Consequent changes will require approval by Ofgem, in line with the established process for connection charging modifications.
Ofgem is consulting on changes to Standard Licence Condition 12 to allow DNOs to require the payment of A&D fees as a precondition for providing a connection offer.
Detail of feedback received
We received 22 responses from:
- Distribution Network Operators (DNOs)
- Independent Connection Providers
- distribution connection customers (generation, demand and storage)
- trade associations
- a private individual
All responses received as part of the consultation were considered in developing the final Statutory Instrument, impact assessment and policy positions. Summaries of comments are set out in the government response, and a full list of respondents included in Annex A.
Government believes that allowing distribution network operators (DNOs) to charge upfront Assessment & Design (A&D) fees when processing connection requests to the electricity distribution network, will help ensure a fairer sharing of costs between customers and help improve the efficiency of the overall connection process.
We’re seeking comments on the draft Statutory Instrument (The Electricity (Connection Offer Expenses) Regulations 2017), which will enable DNOs to charge these fees.
We would like views on the proposed approach, our assessment of the economic impacts, and the draft Statutory Instrument, from those with an interest in distribution network connections, for example, generators, property and commercial developers, local authorities and development bodies, and community energy bodies.
The consultation document also responds to comments made as part of the earlier Call for Evidence on Assessment and Design Fees.