Ofgem to reduce distribution connection charges as part of its significant code review

Larger network users will be offered standardised flexible connection options

Ofgem has published its final Decision and Direction on the Access and Forward-Looking Charges Significant Code Review (SCR).

The SCR sets out changes that will be made in network charges and how users access the electricity distribution network.

The energy regulator has decided to reduce the overall connection charge for those connecting to the distribution network.

This includes removing the payment to wider network reinforcement for demand connections and reducing the contribution to wider network reinforcement for generation connections.

Regarding the choice of access rights, Ofgem has also decided to ensure a standardised option for larger network users.

The decision document states: “where there is a network benefit associated with a curtailable
connection offer, distribution network operators will be required to make this option available to the connecting customer.”

In response to Ofgem’s publication, Paul McGimpsey, Director of Regulation at Energy Networks Association, said: As the energy networks become even more decentralised, digitalised and decarbonised to help the UK meet its net zero targets,

“Ofgem’s plans will help customers to connect low carbon technologies to the grid quicker and more efficiently. We will be supporting Ofgem to ensure that the resulting changes to the energy Codes will be implemented before RIIO-ED2 begins next year.”

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