Helping new customers connect to the electricity network is one of the most important services provided by distribution network operators (DNOs). It enables new homes to be built and occupied, new businesses to start trading and new forms of generation to produce energy.
We expect DNOs to provide good service to customers who are seeking a connection. To encourage this, we introduced the Incentive on Connections Engagement (ICE). Under the ICE, DNOs must demonstrate that they have engaged and responded to the needs of stakeholders that require a larger connection. If they fail to do so, they could incur a penalty in particular segments of the connections market.
In May the DNOs submitted evidence for how they had performed in 2015-16 and we issued a consultation in July to seek stakeholders’ views. We are generally pleased that a majority of responses highlighted significant improvements to the DNOs’ connections stakeholder engagement. Broadly we consider that there is good evidence that DNOs are striving to understand and meet the needs of their connections customers. However, having assessed the submissions and stakeholder responses, we have identified a potential issue with an aspect of the performance of one DNO – Northern Powergrid – which we want further information on.
At this stage, we do not consider that there is a case for applying penalties against the remaining DNOs and, therefore, we are not consulting further on their performance in 2015-16. However, we have published in full all non-confidential stakeholder responses to our earlier consultation and expect the DNOs to take this feedback into consideration for their activities in 2016-17.
In this letter, we are seeking your views on whether or not Northern Powergrid delivered on one of its commitments for 2015-16. If you believe the commitment has not been delivered we also want to know whether this adversely affected stakeholders, and if there is any reasonable justification for the commitment not being delivered. Responses to this consultation will help inform our view on whether Northern Powergrid has met the minimum criteria in certain market segments, and if not, whether we should apply penalties.
The deadline for responses is 5 October 2016. Responses should be sent to connections@ofgem.gov.uk. When responding, please ensure that you address the specific questions raised in relation to our concerns with Northern Powergrid’s submission.