Economy Minister today launched a consultation
on changes to how the costs associated with new connections to
the electricity distribution network are recovered.
Under the proposals, a higher proportion of the cost to reinforce
new connections to the electricity grid will be spread across all
customers and paid for over a longer period. This is known as
‘socialisation of connection costs'.
Minister Murphy said: “Supporting homeowners and
businesses to install low carbon and renewable technologies is
vital to reducing our carbon emissions. The current electricity
connection charging model does not adequately support the
connection of new low carbon technologies and renewable energy.
Reforming our connection charging policy will encourage
investment in these technologies and facilitate a greener, more
sustainable economy.”
Under the current system, adding a new low carbon connection such
as a heat pump or EV charger may require reinforcement to the
electricity grid. The cost of this initial reinforcement is
currently charged to the householder or business requiring the
upgrade. However, other electricity customers who share the line
can potentially add a low carbon technology at a later time
without having contributed to the initial cost of the upgrade.
This is known as ‘first mover disadvantage'.
Minister Murphy said: “The ‘first mover disadvantage' is
a barrier to homeowners and businesses who wish to install low
carbon technologies and renewable generation in areas where the
electricity grid is weak, which is more likely in rural areas.
Implementing the socialisation proposals in this consultation
will address this regional imbalance, make the system fairer and
unlock the benefits of the energy transition for all customers.
The proposals will also bring the north in line with other
jurisdictions like the south of Ireland and Britain.”
In conclusion, the Minister said: “Co-design and
collaboration are central to the drafting of effective policy,
and I would encourage consumers, industry, academia and other
interested parties to contribute to this consultation.”
Notes to editors:
1. Access to the Consultation is through the Department's
website at www.economy-ni.gov.uk/consultations/increased-socialisation-connection-costs-electricity-distribution-network and
will remain open for 12 weeks until 23:59 on 24 April
2025. The communication point for the consultation is
connectionchargingreview@economy-ni.gov.uk.
