connection offer expenses - spenergynetworks · standard complaints procedure. if you do not feel...

Connection Offer Expenses CustOmEr GuidE

Connection Offer Expenses CustOmEr GuidE

Contents

HOw will tHis affECt mE as an sP EnErGy nEtwOrks COnnECtiOns CustOmEr? P2

wHat is CHanGinG? P2

wHiCH COnnECtiOn aPPliCatiOns will BE CHarGEd? P3

statEmEnt Of mEtHOdOlOGy and CHarGEs fOr COnnECtiOn tO sP distriButiOn PlC and sP manwEB PlC’s ElECtriCity distriButiOn systEms P3

tyPiCal EXamPlEs wHErE COnnECtiOn OffEr EXPEnsEs WILL BE aPPliEd P4

tyPiCal EXamPlE wHErE COnnECtiOn OffEr EXPEnsEs WILL NOT BE aPPliEd P5

Can i makE CHanGEs tO my aPPliCatiOn durinG PrOduCtiOn? P5

wHEn must i Pay? P5

Can i aPPEal tHE CHarGE? P5

frEQuEntly askEd QuEstiOns P6

PrOCEss tO sHOw wHEn yOu will BE nOtifiEd tHat yOur PrOjECt is suBjECt tO COnnECtiOn OffEr EXPEnsEs P7

EXamPlE Of tHE lEttEr yOu will rECEivE if yOur PrOjECt is

suBjECt tO COnnECtiOn OffEr EXPEnsEs P8

1

wHiCH COnnECtiOn aPPliCatiOns

will BE CHarGEd?

the Connection Offer Expenses apply to formal Offers to connect to our distribution network, and may be rolled out to other market segments in subsequent phases. initially the following categories will be charged;

• distributed Generation (dG) connection offers at High voltage (11kv) / Extra High voltage (33kv); (note: combined demand and generation offers, if the generation part is G59 then the application will be classed as dG and Connection offer Expenses will apply)

• all demand and generation 132kv offers in the sP manweb licensed area.

for all other categories charges apply upon Offer acceptance.

statEmEnt Of mEtHOdOlOGy and

CHarGEs fOr COnnECtiOn tO sP

distriButiOn PlC and sP manwEB PlC’s

ElECtriCity distriButiOn systEms

for further information and the current applicable fees please refer to “statement of methodology and Charges for connection to sP distribution plc and sP manweb plc’s Electricity distribution systems” section C 7.15 and C7.16 “assessment and design for all relevant work.” which tabulates all the minimum charges by category and the timing of the charge. https://www.scottishpower.com/userfiles/file/sPEn_Connection_methodology_april_2018.pdf.

For your convenience an adapted table where Connection Offer Expenses applies is outlined below.

HOw will tHis affECt mE as an sP

EnErGy nEtwOrks COnnECtiOns

CustOmEr?

sP Energy networks will charge Connection Offer Expenses to you when you make an application for a new connection or modification to an existing connection regardless of whether or not you go on to accept the connection offer. you will be informed at the time of application if you may be required to pay a charge to us to produce the connection offer.

you are required to pay expenses that have been reasonably incurred by us in doing any of the following;

• identifying the most appropriate point on the distribution system at which the Connection can be made and determining the assets that are required to make that Connection;

• assessing whether the Connection and/or the required capacity may have an impact on the distribution system and/or on a transmission

system and whether any reinforcement of the distribution system is required; and

• the engineering and administrative time required to process your application and to design the technical solution and offer terms for the Connection, including any discussions with you in respect of your requirements.

wHat is CHanGinG?

Connection Offer Expenses will be required to be paid by you even if you do not wish to accept your connection offer.

when applying for a connection, we will notify you and advise you of the requirement to pay a fee and how much it will be before we commence the work. if you decide you no longer want to pursue your application and you notify us in writing during the 14 days “cooling off” period of receiving our notification, we will not charge you. if you cancel after that time we may charge you for any costs reasonably incurred, up to the point of notification.

There has recently been an important industry change in the way DNO’s charge for the costs associated with preparing a Connection Offer.

this leaflet explains sP Energy networks process in relation to Connection Offer Expenses and provides guidance on the type of connection applications that the new charges will be applicable to, and how our customers will be affected. Connection Offer Expenses will come into effect for all new and modified applications from 3rd september 2018.

Prior to 6th april 2018, and irrespective of the complexity or number of applications made, the costs associated with the production of connection offers were not charged directly to the applicant. these costs were recovered from those customers who accepted a connection offer. this approach led to increasing volumes of speculative applications, resulting in dnOs incurring costs and spending significant periods of time preparing offers which did not proceed.

Going forward if a customer requests a connection offer from sP Energy networks, the customer will be required to pay for the cost associated with its production. this cost associated with providing a connection offer will be known as Connection Offer Expenses (previously described as assessment and design fees).

SP Energy Networks are committed to continually listening to our stakeholders, adapting our processes and improving our service to our customers.

32

Table 7.15 - Assessment and Design for all relevant work

Table 7.16 - Assessment and Design for all relevant work

minimum charge

minimum charge

minimum charge

minimum charge

Category

Category

Category

Category

Generation

Generation

demand

demand

POC

full works

Connection of generation at Hv up to 250kva

Connection of generation at Hv up to 250kva

Connection at 132kv (sP manweb plc only)

Connection at 132kv (sP manweb plc only)

Connection of generation at Hv greater than 250kva and up to 1mva

Connection of generation at Hv greater than 250kva and up to 1mva

Connection of generation at Hv greater than 1mva

Connection of generation at Hv greater than 1mva

Connection of generation at 33kv up to 10mva

Connection of generation at 33kv up to 10mva

Connection of generation at 33kv greater than 10mva

Connection of generation at 33kv greater than 10mva

Connection of generation greater than 50mva

Connection of generation greater than 50mva

£2,000

£3,000

£7,500

£5,000

£2,000

£3,000

£2,000

£3,000

£6,000

£8,000

£6,000

£8,000

£7,500

£10,000

£2,000

£3,000

£7,500

£5,000

£2,000

£3,000

£2,000

£3,000

£6,000

£8,000

£6,000

£8,000

£7,500

£10,000

£75

n/a

£75

£75

n/a

n/a

£75

n/a

£75

£75

£75

£75

£75

£75

additional charge

additional charge

additional charge

additional charge

timing of charge

timing of charge

timing of charge

timing of charge

Connection Offer

Connection Offer

Connection Offer

Connection Offer

acceptance

acceptance

acceptance

acceptance

adapted from statement of methodology and Charges for connection to sP distribution plc and sP manweb plc’s electricity distribution systems. Charges correct as of august 2018.

adapted from statement of methodology and Charges for connection to sP distribution plc and sP manweb plc’s electricity distribution systems. Charges correct as of august 2018.

tyPiCal EXamPlE wHErE COnnECtiOn

OffEr EXPEnsEs WILL NOT BE aPPliEd

Example

Enquiry received requesting dual Offer for connection of 141 new Properties Estimated total load 200kva with 2kw of Pv Generation being installed on each property :-

• following design assessment it is established that the highest voltage of assets to be installed including any associated reinforcement or diversionary works will be Hv

• Generation being installed under G83 stage 2

• Connection Offer Expenses will nOt aPPly to this enquiry and will instead be levied at the time

of Offer acceptance

Can i makE CHanGEs tO my

aPPliCatiOn durinG PrOduCtiOn?

• Minor Change – no further network analysis required, therefore no additional Connection Offer Expense

• Major Change – when the change will require further network analysis i.e. if the change materially changes the design required.

Can be made within the ‘cooling off’ period without a charge.

a Connection Offer Expense will be due if the major

change is made after the ‘cooling off’ period.

wHEn must i Pay?

Payment will be required in two stages, an initial 50% will be invoiced during production of the offer following the “cooling off” period and payment required within 14 days (or 10 working days). the remaining 50% will be invoiced at the time of

making the Offer.

Can i aPPEal tHE CHarGE?

if you feel that the Connection Offer Expenses have

been applied incorrectly please contact the person

responsible for issuing your connection offer in

the first place. if, following discussion, you are not

satisfied with our response we will refer the matter

to the relevant manager. if we still cannot resolve

the matter you may escalate it further, following our

standard complaints procedure.

if you do not feel we have dealt with your complaint

satisfactorily you may also refer the matter to the

authority for determination in accordance with

section 23 of the Electricity act 1989.

tyPiCal EXamPlEs wHErE COnnECtiOn

OffEr EXPEnsEs WILL BE aPPliEd

Example 1

Enquiry received requesting dual Offer for connection

of 50kva Generation:-

• following design assessment it is established that

the highest voltage of assets to be installed

including any associated reinforcement or

diversionary works will be Hv

• Generation being installed under G59/3

• Connection Offer Expenses will therefore apply

to enquiry, charged :-

• £1500 stage 1 invoice

• £1500 stage 2 invoice issued at time of Offer

Example 2

Enquiry received requesting dual Offer for connection of a load @ 50kva and 2mw of Battery units:-

• following design assessment it is established that the highest voltage of assets to be installed including any associated reinforcement or diversionary works will be EHv


• Connection Offer Expenses will therefore apply to enquiry, charged :-



Example 3

Enquiry received requesting POC Only connection

offer for proposal to connect 141 new Properties

Estimated total load 200kva with a commercial

connection for 50kw G59 Generation :-

• following design assessment it is established that the highest voltage of assets to be installed including any associated reinforcement or diversionary works will be Hv





Example 4

Enquiry received requesting Quote Plus Offer for connection of one of the following

1. load @ 50kva and 500kva of Battery units

2. load @ 50kva and 1mw of Battery units

3. load @ 50kva and 2mw of Battery units

• following Budget assessment it is established that the highest voltage of assets likely to be installed including any associated reinforcement or diversionary works will be

• Option 1 & Option 2 @ Hv for Option 3 @ EHv


• initial Quote Plus Budget provided free of Charge however indicating potential Connection Offer Expense that will apply if request for formal offer is confirmed within five days of Quote Plus being issued

• Customer request to proceed with formal Offer for Option 2




54

PrOCEss tO sHOw wHEn yOu will BE nOtifiEd tHat yOur PrOjECt is

suBjECt tO COnnECtiOn OffEr EXPEnsEs

Customer Enquiry

SP Energy Networks and Customer / ICP progress

delivery of the project

Acceptance and payment

Customer / ICP has a 14 day ‘Cooling

Off’ period to decide if they would like to

continue with the application

Customer / ICP responds in writing

to SP Energy Networks to

confirm they wish to proceed with the

application

Invoice Issued for final 50% of

Connection Offer Expense - Payment required in 14 days.

SP Energy Networks inform Customer /

ICP when Connection Offer Expenses are

applicable and detail the specific cost of

the Expenses

Invoice Issued for 50% of Connection

Offer Expense - Payment required

in 14 days

We will contact you to discuss your Quote (if

necessary), answer any questions you have and explain

next steps

Full Works or POC quote issued (this is valid for 3 calendar months) showing

detail of the works and all costs

SP Energy Networks check the enquiry

for competency

SP Energy Networks investigate the nature of the

application and determine if

Connection Offer Expenses are

applicable

SP Energy Networks will make contact with Customer/

ICP to discuss any queries if necessary

ICP to use RADAR to submit online POC application

Customer submits application to

SP Energy Networks For more details go to:

spenergynetworks.co.uk/pages/

which_type_of_connection.aspx

ICP Enquiry

I’m not sure what my capacity requirements are or what generation technology type I might use. If I make multiple applications for the same site, will I be charged for each?

we will charge you for each connection offer that

you request. However, there are alternatives to

requesting a formal connection offer. you can request

a Budget Estimate or Quote Plus free of charge up to

the stage that you advise which option you wish to

formally proceed with. there is also a feasibility study

(chargeable) if you want to explore options.

If we make multiple applications for the same premises will you charge multiple Connection Offer Expenses fees?

if we receive several applications for the same

site, typically where a number of agents such as

independent connection providers tender for the

same project each will be charged. the first applicant

will be charged the Connection Offer Expenses fee in

full and any subsequent application making use of the

same design will be charged 50%.

If reinforcement works make my scheme unviable and I wish to utilise a lower capacity, will I need to re-apply and will you charge an additional Fee?

we will inform you once we identify reinforcement

works are triggered and then discuss the options

with you. if you decide a lower capacity still works

we can provide a connection offer based on your

revised requirements. depending on the timing of

your request and the amount of further assessment

required we may charge you for any additional cost

we reasonably incur.

If an earlier offer lapses and is no longer valid for acceptance will I be charged further fees?

yes, should an offer made to you lapse after its validity

period and you make a subsequent application you

will be charged as we will have to undertake further

work and prepare a new Connection Offer. if there

is no redesign required then 50% of the Connection

Offer Expenses will be charged.

If an offer is in the wrong name and I need it re-issued to allow me to accept, will I be charged?

yes an administration fee will apply. it is important

that the details submitted upon application are

accurate and reflect the contracting party.

If I request a point of connection offer only and then request a full works (Dual Offer) connection offer for SP Manweb plc / SP Distribution plc to undertake all the works, will you charge further Fees?

yes we will need to undertake further work and

prepare a new connection offer, therefore you will

be charged. if the work requires a redesign a full

100% will apply, if not 50% of the Connection Offer

Expenses will be charged.

If I am in an interactive queue and I am unsuccessful and wish to re-apply, will I be charged the full A&D Fee again?

yes. if you are unsuccessful and you wish to re-apply

we will need to undertake a further assessment to

evaluate the extent of any reinforcement works

required and prepare a new connection offer and

you will therefore be charged the Connection Offer

Expenses in full.

frEQuEntly askEd QuEstiOns

76

Invoice Issued for final 50% of Connection Offer Expense

- Payment required in 14 days.

SP Energy Networks appointed

8

Thank you for your application for connection.

When you make an application for connection requesting an offer under section 16A (1) of the Act, we are obliged to provide you NOTICE UNDER paragraph (4), The Electricity (Connection Offer Expenses) Regulations 2018 that you will be required to pay for cost associated with its production. We will charge you Connection Offer Expenses when you make an application for a new connection or modification to an existing connection regardless of whether or not you go on to accept the connection offer.

You are required to pay expenses that have been reasonably incurred by us in doing any of the following;

• IdentifyingthemostappropriatepointontheDistributionSystematwhichtheConnectioncanbemade and determining the assets that are required to make that Connection;

• AssessingwhethertheConnectionand/ortherequiredcapacitymayhaveanimpactontheDistributionSystem and/or on a transmission system and whether any reinforcement of the Distribution System is required; and

• Theengineeringandadministrativetimerequiredtoprocessyourapplicationandtodesignthetechnical solution and offer terms for the Connection, including any discussions with you in respect of your requirements.

We require you to pay Connection Offer Expenses as detailed in our published “Statement of Methodology and charges for connection to SP Distribution plc and SP Manweb plc’s electricity distribution system”. Section C, “Assessment and design for all relevant work” specifies the relevant Connection Offer Expenses at the various voltage and capacity categories.

https://www.scottishpower.com/userfiles/file/SPEN_Connection_Methodology_April_2018.pdf

In the case of Quote Plus and your Optioneering Information letter, if you decide within 5 days to progress with a formal application for one of the options provided to you, the Connection Offer Expenses applicable for each option is outlined below.

TheConnectionOfferExpensesassessedtobepaidbyyouinrelationtothisapplicationisoutlinedbelow:

Payment will be required in two stages, the initial 50% will be invoiced after this notice and payment is required within 10 workingdays.Theremaining50%willbeinvoicedatthetimeofmakingtheOffer.BothinvoicestogetherequalthefullConnection Offer Expenses that you are required to pay irrespective of whether you intend to accept the offer.

YOUR COOLING OFF PERIOD WHERE NO CONNECTION OFFER EXPENSE WILL APPLY

Should you decide following this notice not to proceed with your application you have a cooling off period that applies and the right to cancel your application free of charge within 14 days of the date of this notice. If you cancel after that time we may charge you for any costs reasonably incurred up to the point of notification.

Please notify us in writing your decision to proceed with your application or cancel the application. If we do not receive a response by the due date we will assume you wish to proceed with your application.

If you need more information at any point our design teams are happy to help.

If you require any further clarification regarding this notice, please do not hesitate to contact [ ]. If we cannot resolve your enquiry you have the right to apply to the Office of Gas and Electricity Markets, 9Millbank,London,SW1P3GE.Telephone02079017000toappeal.

CategoryMinimum

Charge

e.g Generation

e.g Connection of generation at HV greater than 1MVA £XXX

EXamPlE Of tHE lEttEr yOu will rECEivE if yOur PrOjECt is

suBjECt tO COnnECtiOn OffEr EXPEnsEs

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