UK Power Networks Connection Charging Methodology and Statement updates
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 (CiCCoP) comes into effect on 30 October 2015. This requires amendments to a DNO’s methodology to indicate that ‘point of connection determination’ and ‘design approval’ 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.
UKPN has proposed amendments to its methodology for the CiCCoP changes and to specify a de minimis value. Ofgem has decided not to veto the amendments proposed by UKPN.