Outcome of our assessment under the 2017 RIIO-ED1 Incentive on Connection Engagement

Decision

We expect distribution network operators (DNOs) to provide a high quality service to all customers who are seeking a connection. Helping new customers connect to the electricity network is one of the most important services provided by DNOs. It enables the construction and occupation of new homes, starting up and running new businesses and producing electricity through new forms of generation. The responsibility for ensuring electricity connections is on the DNOs.

We introduced the Incentive on Connections Engagement (ICE) to encourage DNOs to continuously engage and provide a high level of service to customers seeking a connection. If DNOs fail to provide a quality of service and engagement that meets the requirements of their larger connection customers, they can incur a penalty.

We have concluded the assessment for this year’s ICE and overall, there is a trend of good progress and improved stakeholder engagement amongst all DNOs. However, some DNOs appear to be making better progress than others. In some cases, stakeholders’ feedback suggests that improvements to engagement are not always leading to improvements in the connections experience. We expect to see this addressed by the DNOs and we will monitor this through next year’s ICE process.

We have considered the evidence provided by connection stakeholders and DNO’s and we have decided to not apply any penalties this year. The evidence provided by stakeholders was important in shaping our decision and overall, stakeholders informed us that they are largely satisfied with the service and engagement they have received. This letter provides our reasons for the decision.