The Connections Charging Process
There are certain charges in the connections process that will be associated with the cost of connecting to the transmission system. If you apply to connect, you will have a contract with the National Electricity System Operator. The contract charges associated with transmission connection through NGET will be calculated according to:
the type of connection you require
the size of your connection
and where you connect
At each stage, we have detailed some of the charges you can expect.
Designing Your Connection
When you apply for your connection, there will be a charge for the application, depending on the size and location of your proposed scheme. The fees are set annually and published by the NESO: Connections Offer Process.
We may need to carry out works on the transmission system that, although directly attributable to the connection, may not result in additional connection assets. These works are defined as 'one-offs'.
One-off charges are established based on:
- whether a cost can be capitalised as either a connection or infrastructure asset;
- whether the cost has been incurred as a result of a non-standard request;
- or where we have had to ‘write-off’ some connection assets as a result of a termination.
Building Your Connection
If a new connection conflicts with another existing connection, for example a Distribution Network Operator Grid Supply Point or another customer connection, we may need to conduct third party works to make assets safe. If your connection requires these works, you will be charged accordingly.
You will need to lodge ‘securities’ with the NESO for your connection project whilst our connection works are ongoing. Securities provide commercial commitment for the investments we undertake to deliver your project and are drawn down on in the event that you decide to cancel your connection project or reduce your capacity requirements after our work has begun.
There are multiple routes to lodge securities depending on your organisation’s credit rating. The NESO can help you understand your options. Raise a request via their Customer Connections Portal to find out more.
Connecting to the Network and Maintaining Your Connection
This covers the day-to-day costs the NESO incurs for balancing generation and demand on a minute-by-minute basis. BSUoS is calculated daily as a flat tariff for all network users.
The NESO provides a forecast of BSUoS as part of the monthly balancing services summary report.
When we, as an electricity Transmission Owner, connect your business to the National Electricity Transmission System (NETS), we incur costs which we recover through connection charges. These costs include the design and build of any connection assets, which vary from connection to connection but could include the procurement and installation of transformers, switchgear, metering, cables and short sections of overhead lines and their associated civils works. The cost of clearing and preparing land for your new connection is also included. Take a look at our Connection Charges leaflet to learn more.
Concluding Your Connection
When you reach the stage where you would like to wholly or partially disconnect from the National Grid electricity system, you are required to pay a termination charge.
If connection assets become redundant in the process of your site's disconnection, you will be required to pay an amount equal to the residual asset value at the end of the financial year in which the termination of your connection occurs. You will also be required to consider:
- The reasonable costs of removing these assets to ensure the connection site is fully operational and ready for future use.
- If a termination occurs before the end of a financial year, the connection charge for the full year remains payable. Any remaining 'Use of System' charges (TNUoS and BSUoS) also remain payable.
- Previous capital contributions paid will be taken into account in the termination charge, as well as the impact of any impending asset replacements on residual asset value.
If specific decommissioning works are needed to make your asset safe, we will charge you for any works necessary. If you terminate before your connection, our decommissioning work may include restoring the asset to its previous condition.
Our Charging Statement
Our Charging Statement sets out the methodology for us to cost up your connection and charge for it to the NESO. Among other things, this document provides illustrative connection examples and associated costs; our fees for applying for a connection offer and the commercial principles behind how we charge for anything connections related.
