SCR: Connection Cost & Charging Reform (1st April 23)

The Grid

From the 1st of April 2023, grid connection regulation has changed significantly.

On the whole, the headline is very positive in that demand connections no longer pay for reinforcement costs, subject to some exceptions. However the exceptions are more complicated than you might think.

Whilst commercial feasibility should increase for many projects. more projects are also expected to experience time delays and the trade off between cost and time will become an increasing focus for many developers.

In addition, extra regulation has been brought in for connecting customers to comply with. 'Speculative projects' (particularly aimed at housing development) are now regulated for and more likely to be penalised whilst 'phased capacity' planning is also now a regulated thing which is encouraged through the new regulations (and likely to be essential for many projects). Flexible connections are also now more regulated, opening up even more optionality in how you connect to the grid.

In our latest podcast, we explore the complexities of the new regulations to highlight the new hurdles that developers need to be aware of and our recommendations on how to navigate the increase in both optionality and complexity of the new grid connection regime.

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