Grid connection costs set to increase

Vattenfall is highlighting the potential increases to grid connections, pointing out that earlier this year, NGED, the DNO which manages electricity distribution in the South Midlands, Wales and the Southwest of the UK, published the statement saying the charging method for larger connections will changing from 1 April 2024 with customers seeking quotations for connections greater than 250kVa at high voltage required to pay for them when they are issued.

DNOs have always been entitled to charge for grid connection applications but have historically avoided doing so, but as demand for new and larger grid connections has increased in line with the electrification and the rapid deployment of renewable energy systems, it is unsurprising that DNOs would start charging at some point.

NGED is the first DNO to introduce charges for commercial grid applications and it makes sense from their perspective. The volume of connection applications has increased tenfold over the last 5 years and, since not all applications proceed to connection, the DNOs have incurred significant costs, which they have passed on to all electricity consumers. The introduction of grid connection application charges should limit the number of speculative applications and reduce overall costs.

Vattenfall has helpfully pointed out that its IDNO’s new Grid Connection Consultancy service is available and has now developed a data platform to help clients understand where, and how much, grid capacity is available across the UK.



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