Connection Offer Expenses – New Regulations……..
BEIS are introducing new regulations which come into force from 6 April 2018, in the form of the Electricity (Connection Offer Expenses) Regulations 2018. This will allow all Distribution Network Operators (DNO’s) to charge customers a fee for assessing their connection offer, regardless of whether they are accepted.
Assessment and Design…….
Expenses are incurred by the DNO’s in reviewing applications, assessing the network, designing the connection and preparing the connection offer, known as the Assessment and Design (A&D) Fee.
Very shortly each DNO will be providing detailed information about the new A&D fees. These will currently apply to HV and EHV distributed generation applications and rates for which will be published within their Connection Charging Methodology and Statement document. This information should then be available on their website.
How it Works…….
It’s not clear at this stage whether all DNO’s will follow suit, however SSE have advised that a separate Connection Offer Expense invoice will be issued at the same time as the connection offer. At which point the customer may accept and pay the full connection offer expenses (to secure the connection), or not accept the offer but pay the Connection Offer Expenses Charge invoice. Non payment of the connection offer expense invoice will result in the debt being pursued through a DNO’s normal debt recovery process.
The link to the new regulations can be found on this link – http://www.legislation.gov.uk/uksi/2018/254/made.