Ofgem’s position on whether the voltage rule should take precedence over the High Cost Cap for Distributed Generation connections

Publication date
11th January 2016
Information type
Policy area

The Common Connection Charging Methodology (CCCM) is used by Distribution Network Operators (DNOs) to calculate charges for providing a connection to their networks. The CCCM sets out a number of rules, including both the ‘voltage rule’ and the ‘High Cost Cap’ (applied to certain distributed generation (DG) connections).

DNOs asked us to clarify our policy position on which of the two rules should take precedence in the event that a DG connection triggers both rules.  We consulted on our view that the voltage rule should take precedence over the High Cost Cap. We received 14 responses, most supporting our view. Some DNOs raised concerns which required further assessment before confirming our position that the voltage rule should take precedence. We encourage a change to the CCCM which would make this precedence clear.