Northern Ireland Economy minister announces fairer connection costs for rural communities

Economy Minister Dr Caoimhe Archibald has announced her decision to make new connections to the electricity grid fairer and more affordable for rural businesses and families.

Reinforcement costs, previously charged for any upgrade to increase the capacity of the local network, will now be spread across all consumers, and over a longer period of time.

The decision will remove a major barrier to business investment in rural areas.

Announcing her decision during a visit to FP McCann LTD's new automated bagging facility in Knockloughrim, the Minister said: “The existing connection policy is unfair to rural communities, which shoulder the burden of reinforcement costs.

“Sharing these costs will make it easier for rural businesses to invest in productivity improvements and job creation, strengthening regional balance. It will also help reduce costs for rural families seeking to build new homes in their local communities. And by increasing investment in renewable energy, fairer connection costs will lessen our reliance on expensive fossil fuels and help us to move to cheaper and more sustainable energy sources.”

The Minister added: “This new policy also brings us into line with the rest of Ireland and Britain, making the north a more competitive destination for businesses investment and job creation.”

Welcoming the announcement, FP McCann's Managing Director, Hugh McCann, explained that the decision will reduce an inequality in grid connection charges that has disadvantaged rural industrial development. He said: “A more equitable connection charging system will unlock investment opportunities across Northern Ireland, supporting job creation and economic development in rural areas historically disadvantaged by infrastructure costs.”

The Minister's decision follows a joint Call for Evidence with the Utility Regulator in 2023 and a consultation which the Department published in January 2025.

Also welcoming the decision, CBI Northern Ireland Chair, Brian Donaldson, added: “This change of policy aligns closely with Great Britain and benefits all stakeholders. NIE Networks is building increased grid capacity in a more effective way, supporting businesses and users to connect at a more affordable cost.

“Ultimately, this will remove previous barriers and stimulate investment from the private sector in growing renewable electricity consumption and establishing an effective grid infrastructure to support the transition to a sustainable green economy.”

Edel Creery, NIE Networks Customer & Operations Director said: “NIE Networks welcomes the Minister's decision to change the connection charging policy bringing it in line with neighbouring regions.

“This update supports the Northern Ireland Energy Strategy and Climate Change Act, protects consumers, and reflects the feedback NIE Networks received from industry partners. It is an important step towards meeting our ambitious climate targets and attracting investment.”

Turning to how the decision will be implemented, Minister Archibald concluded: “Following this decision the Utility Regulator will work to modify NIE Networks' licence, and a new statement of connection charges will be published in the new year. The new policy will take effect in the first half of 2026.”

Notes to editors:

1. The ‘Decision on Fairer Grid Connection Costs' is available on the Department's website at www.economy-ni.gov.uk/publications/decision-fairer-grid-connection-costs
2. DfE and the Utility Regulator published a joint Call for Evidence in 2023, and taking into account the responses from the CfE, published a consultation on increasing the level of socialisation of network reinforcement costs in January 2025.  The consultation proposed four different options. The Department's preferred option was Option 4, full socialisation for network reinforcement costs for connections to the electricity distribution network. The large majority of responses fully supported Option 4.
3. The decision only applies to any necessary reinforcement costs. It also only relates to connections to the electricity distribution network, not to connections to the transmission network, which addresses reinforcement costs differently.
4. Grid reinforcement costs relating to new connections can range from a few thousands of pounds to up to millions of pounds for larger connections, such as a connection for a heavy manufacturing plant, and can vary significantly depending on the capacity of the existing electricity grid in the area the connection is being made.
5. Following the Minister's decision on fairer connection costs, NIE Networks will make contact with all those with existing applications with reinforcement elements, to discuss their applications.
6. FP McCann is the UK's largest precast concrete manufacturer and a major industrial employer with approximately 1,700 staff across 20 UK facilities, including multiple operations in Northern Ireland at Knockloughrim, Toomebridge, Lisnaskea, and Armagh.