Pricing the risk associated with the provision of utility connections is becoming increasingly difficult for property developers, construction firms, industrial users and other businesses. The main reason for this is delays and unforeseen costs which affect business, however The Energy Desk have adopted a new approach to new connections designed to make it easier for businesses to complete projects on time.
Failing to recognise the provision of statutory services can be devastating for a project or construction site due to costs and delivery timescales. There can be many issues when it comes to diverting, isolating, connecting and energising utilities which are varied and equally as problematic.
With the market opening up to competition, it is now easier than ever to secure new connections with TED.
On 1 April 1995 the Office of Electricity Regulation (OFFER) now the Office of Gas and Electricity Markets (OFGEM), brought about Competition in Electricity Connections. With this introduction of competition, customers now have the option to seek competitive quotations for some of the work required to make a new connection to the electricity distribution system. The work involved in providing new connections can be split into two categories. The first category is Non-Contestable work.
These works can only be undertaken by the host Distribution Network Operator (DNO). The second category is Contestable work. These works may only be undertaken by an accredited Independent Connections Provider (ICP) who must be registered with Lloyds register to carry out such works.
Non–contestable works: To be undertaken by the host DNO
Contestable Works: To be Undertaken by a Lloyds registered ICP
Infrastructure tendering means shopping around for the best prices for contestable works of an infrastructure project instead of just using one provider for all elements.
Non-contestable works is work that can only be undertaken by the host Distribution Network operator (DNO)
Contestable work is work which may be undertaken by a suitably accredited Independent Connections Provider (ICP) which is where The Energy Desk specialise in.
For connections provided under competition in connections each host DNO has a connection process to ensure that connections are made to the required standards and within timeframes specified by the regulator. The following connection process is typical of what is required to enable a customer to be connected.
1) Apply for Point of Connection (POC) and Non-contestable charges.
A site plan of the development and the required readings of the proposed buildings or generation capacity is first needed In order for the host DNO to provide a Point of Connection to the existing distribution system. This information should then be sent off as an application to the host DNO. The ICP (TED in this case) can assist in this process and submit the application on your behalf.
2) Offer of POC and Non contestable charges made by DNO
The DNO will provide a POC and non-contestable charges. These should be received within the time frames set out by OFGEM as follows.
• Simple connection – 5 Days
• Complex connection – 30 Days
• Complicated connection – 50 Days
The Non contestable charges are calculated as per the DNO’s condition 4 charging methodology statement.
3) Contestable works quotation
From the Point of Connection information provided, TED’s partner will prepare a quotation for the Contestable works associated with the connection. The sum of the non-contestable and contestable works then gives you the total connection cost.
4) Place order for Contestable works
On placement of an order for the contestable works the ICP will prepare a connection design for approval by the DNO.
5) Accept Non-contestable Costs
The connection offer from the DNO is accepted and the charges paid.
6) Design approval by DNO
Once the non contestable charges have been paid the DNO will approve the connection design provided by TED. They are obliged to do this within 10 days of submission.
Find out how TED can save you money on your energy bills.
TED have introduced a hassle free system that you can use to procure your quotations in one easy process. With our simple to use online procurement system specially designed for utilities, you can price the risk associated with the provision of utility connections in one place. Click below to find out more information on how TED can help save you time, money and energy. Learn more about new utility connections.
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