If we build connection assets specifically for you, a connection charge is billed from the point we commission them for you. This will be billed to you by the ESO.
The connection charge is built up of ‘capital’ amounts and ‘non-capital’ amounts related to your connection assets:
This refers to the cost of depreciation over an asset’s life - on average 40 years, plus the permitted rate of return for the build of the asset by ET. The capital portion of the connection charge can either be paid via monthly annualised charge over the life-time of connection assets, or via capital contributions.
Capital contributions are lump sum payments that can reduce your liability for this portion of the charge either in full or partially. You can make these contributions either during construction, at the point where we commission the assets for you, or at a point of your choosing during the lifetime of your connection agreement. Please discuss your payment options with your Account Manager – we’ve produced a guidance document for more information on your payment options.
This refers to costs associated with maintaining connection assets. This charge is payable on a monthly basis.
Once you have connected the spend profile for your connection changes, the ESO will provide you with a forecast for post-commissioning securities that you may be expected to pay.