As the system operator, National Grid Electricity Transmission (NGET) is required to make offers to parties seeking connection to the national electricity transmission system (NETS). The Connection and Use of System Code (CUSC) sets out the standard commercial terms between NGET and users of the NETS. Users enter into a connection agreement in the form set out in the CUSC which, amongst other things, sets out any works required to deliver the connection.
From 11 August 2010, following the implementation of the enduring access reforms, NGET can offer terms for connection to the electricity transmission network based on a Connect and Manage approach. This allows new electricity generators to connect to the network once all enabling works are complete, but ahead of wider transmission system reinforcement being finished. For more detail on Connect and Manage, see NGET’s Connect and Manage Guidance.
We monitor Connect and Manage in line with our duties to protect the interests of gas and electricity consumers. Our annual report to the Secretary of State includes information contained in NGET’s Quarterly Report on the Connect and Manage Regime and the half-yearly Timely Connections Report produced by the transmission licensees in accordance with the electricity transmission licence.
Once a generator has entered into a contractual agreement with NGET (in its role as the System Operator), it may be required to provide a pre-commissioning User Commitment. This is a term for the financial liabilities placed on users that trigger investment in the transmission network.
When a network user applies to connect to NETS or to increase its existing capacity, Transmission Owners undertake the required reinforcement works to the electricity network to accommodate its needs. However, the user may decide to cancel its project or reduce its capacity.
Where the associated works have already begun and the capacity cannot be reused, this can result in unnecessary costs for wider network users and ultimately for consumers. User commitment places liabilities on users in order to financially secure the cost of investment works and protect network users.