Source · Select Committees · Welsh Affairs Committee
Recommendation 14
14
Accepted
Paragraph: 77
It is not equitable that grid reinforcement costs should be shared by consumers in an...
Recommendation
It is not equitable that grid reinforcement costs should be shared by consumers in an area because this would create a higher burden for rural households and businesses and those in areas which historically lack existing grid infrastructure. We ask Ofgem and the UK Government to define what is meant by the phrase “in the area” and to explain how they will ensure that rural or isolated communities will not be unduly burdened.
Government Response Summary
The costs of connecting a project to the existing network are charged to the connecting customer, and from April 2023, reinforcement costs will be met by electricity billpayers in the relevant distribution area.
Paragraph Reference:
77
Government Response
Accepted
HM Government
Accepted
Under Ofgem’s distribution network connection charging arrangements the costs of connecting a project to the existing network are charged to the connecting customer. This is because they are the sole user of this infrastructure, and the arrangement will continue. From April 2023, under Ofgem’s new connection charging arrangements, any reinforcement costs on the existing network to accommodate a new or upgraded demand connection will be met by electricity billpayers “in the area”, which refers to the relevant