Source · Select Committees · Welsh Affairs Committee
Recommendation 13
13
Accepted
Paragraph: 76
We are encouraged to see that the UK Government recognises that grid connection costs can...
Conclusion
We are encouraged to see that the UK Government recognises that grid connection costs can be prohibitively high for developers. However, we are concerned by the decision to move more of the reinforcement costs to the network charges paid by “all electricity consumers in the area”.
Government Response Summary
The government points to Ofgem's decision to socialise a proportion of network reinforcement costs and BEIS's amendment to connections legislation to enable these reforms as addressing the committee's concerns.
Paragraph Reference:
76
Government Response
Accepted
HM Government
Accepted
As the Committee notes, from April 2023, Ofgem, has decided to socialise a further proportion of network reinforcement costs for distribution network connection customers. This will reduce the upfront cost. Part of the rationale for this change was to address the ‘chicken and egg’ issue referred to by the Committee. BEIS has amended existing connections legislation to enable implementation of these reforms. This will give DNOs time to prepare for the changes and ensure they are implemented in a consistent manner across the country.