faq

What are the charging options for paying for connection assets?

National Grid offers a variety of different payment options for customers, these include the following:-

Indicative Price Agreement

The standard connection agreement offered by National Grid is an indicative price agreement. From the Charging Date as set out in the User’s Bilateral Connection Agreement, the User’s initial connection charge is based on a fair and reasonable estimate of the expected costs of the connection. Both capital and non capital charges are payable.

Once the works are completed and the costs finalised, National Grid reconciles the monies paid by the User on the indicative Charges against the charges that would have been payable based on the actual costs incurred.

Firm Price Agreement

Firm price agreements are available. A typical example is having a Firm Price Gross Asset Value (GAV) paid for via a Capital Contribution. When a User selects a firm price agreement some or all elements can be made firm, agreed between National Grid and the User. Any elements not made firm will be charged on an indicative basis.

Capital Contributions

If a User chooses to make a Capital Contribution towards their allocation of a connection asset, then the capital charges will be reduced in accordance with the percentage capital contribution made. A 100% capital contribution will result in no capital charges being payable.