Northern Powergrid Connection Charging Methodology and Statement amendment
Decision
Publication date
Industry sector
Distribution Network
Distribution Network Operators (DNOs) are required under standard licence condition 13 of the Electricity Distribution Licence to have an approved Connection Charging Methodology and Statement. Amendments to the methodology are required to reflect changes in the arrangements for new connections.
The Competition in Connections Code of Practice came into effect on 30 October 2015, and requires amendments to a DNO’s methodology to clearly indicate work which may be carried out by an Independent Connection Provider (ICP).
Section 5.33 of the methodology allows customers to receive a credit where there is a net value in the equipment recovered from the disconnection of a temporary connection. It also permits each DNO to specify a de minimis value for this credit in their Company Specific Connection Charging Methodology. This is to ensure that credits are not provided in those circumstances where it would be uneconomical to do so, for example where administrative costs are higher than the amount refunded to the customer.
Northern Powergrid has proposed amendments to its methodology to reflect the Competition in Connection COP; specify a de minimis value; and reflect passing the competition test in the HV work market sector. Ofgem has decided not to veto the amendments proposed by Northern Powergrid.