Charging of Third Party DNO Works to Transmission Connection Users

A new Schedule

It is the view of the proposer that the cost apportionment approach, similar to those contained in the CCCM, be applied in respect of DNO works which are triggered by a customer seeking a connection to the transmission system.

It is also proposed that the equivalent of the ECCR be applied to provide reimbursement to transmission-connected customers in circumstances where the CAF rules do not apply and full charge for works is initially made to the transmission-connected customer.

A Customers seeking a connection or modifying an existing connection to the transmission system (typically generation or energy storage) may be obliged to undertake a Connection and Use of System Code (CUSC) Third Party Works assessment with an affected Third Party (typically a DNO/Distribution System Operator) as a condition of their contract with the National Electricity Transmission System Operator (NETSO).

Currently the cost apportionment approach within the CCCM does not apply in respect of Distribution Network Operator (DNO) works which may be required to facilitate the requirements of transmission connected customers. This means that the transmission customer who triggers the works is currently responsible for picking up 100% of the cost of works regardless of their incremental contribution.

If there are multiple customers seeking connections to the transmission system and those connections require common works on the distribution system, then the cost currently falls in full to the triggering party (i.e. the first customer seeking a transmission connection for whose connection the distribution system works are required). This can create a situation whereby the first transmission connection customer is creating benefit for other transmission customers without receiving rebate as a distribution customer in the same position would. In the view of the proposer, in this scenario, the first transmission customer is not being treated fairly which means that otherwise viable projects may not be developed, and it creates a false and inefficient incentive to connect at the distribution voltage nearby, where the works could be the same but charged differently.

The proposed change will apply the principles of CCCM to the costs of the distribution system works for transmission users who trigger distribution works relating to a transmission connection. This will allow the full cost of Reinforcement works to be apportioned based on the proportion of thermal capacity or fault level headroom used by the new customer.

Additionally, this change proposes that the principles of the ECCR will apply for any further modifications or new connections to the transmission system that utilises the distribution assets installed for the initial request.

The proposed change will apply the principles of CCCM to the costs of the distribution system works for transmission users who trigger distribution works relating to a transmission connection. This will allow the full cost of Reinforcement works to be apportioned based on the proportion of thermal capacity or fault level headroom used by the new customer.

Additionally, this change proposes that the principles of the ECCR will apply for any further modifications or new connections to the transmission system that utilises the distribution assets installed for the initial request.