The Electricity (Connection Offer Expenses) Regulations 2018

Requirement to pay connection offer expenses

2.—(1) This regulation applies where on or after 6th April 2018 a person (the “applicant”) gives an electricity distributor a notice under section 16A(1) of the Act (the “application”) requiring the electricity distributor to offer terms for making a connection to a distribution system.

(2) Subject to paragraph (4), the electricity distributor may, by giving notice in writing to the applicant, require the applicant to pay expenses relating to the application that have been reasonably incurred by the electricity distributor in doing any of the following—

(a) assessing the impacts of the connection on the distribution system;

(b) assessing the impacts of the connection on a transmission system(1);

(c) designing the connection, including, in particular—

(i) designing any reinforcement works required to add capacity to the distribution system;

(ii) designing any reinforcement works required to add capacity to a transmission system;

(iii) designing any required extension of the distribution system;

(iv) designing any required extension of a transmission system;

(d) processing the application including, but not limited to, preparing the information to be included in the notice under this paragraph and the notice given under section 16A(5) of the Act.

(3) A notice under paragraph (2) must—

(a) specify the amount to be paid by the applicant;

(b) give sufficient information to enable the applicant to understand how the amount has been determined;

(c) specify when payment must be made and how payment may be made; and

(d) include a statement of the effect of section 23 of the Act(2).

(4) The electricity distributor may not require the applicant to pay any expenses in relation to an activity referred to in paragraph (2)(a) to (d) unless before incurring those expenses, the electricity distributor has informed the applicant in writing that the applicant may be required to pay expenses of that kind.

(1)

“Transmission system” is defined in section 4(4) of the Electricity Act 1989 for the purposes of Part 1 of that Act.

(2)

Section 23 was amended by paragraph 26 of Schedule 6 to the Utilities Act 2000 (c. 27), by section 52(6) of the Infrastructure Act 2015 (c. 7), and The Public Bodies (Abolition of the National Consumer Council and Transfer of the Office of Fair Trading’s Functions in relation to Estate Agents etc) Order 2014. Following the transfer of the functions of the Director General of Electricity Supply to the Gas and Electricity Markets Authority, section 3(2) of the Utilities Act 2000 provides that a reference to the Director in an enactment is to have effect as if it were a reference to the Authority.