Today (Friday 8 November) Ofgem has called on network operators
to get renewable, clean power and storage projects connected to
the grid faster, whilst providing connecting customers with
higher standards of service along the way.
The call comes as Ofgem sets out a series of proposals to
overhaul the system for getting new projects connected to the
energy system, speeding up the process and preventing it from
being clogged up with unviable systems.
If approved, the new approach would slim down the 722GW of
projects in the queue, with schemes prioritised if they can be
operational within five years and contribute to the right mix of
renewable generation types in the right location and at the right
voltage to hit the Government's 2030 goal.
However, a new process on its own is not enough – tighter
regulations are needed to drive up standards and ensure the new
process delivers maximum benefit.
This week (Tuesday 5 November) Ofgem and Government set out its
expectation that the time it takes for new wind, solar and
storage projects to connect to the grid should be slashed, as
NESO unveiled its Clean Power Plan and connection reform
proposals.
Eleanor Warburton, Director for Energy System Design and
Development at Ofgem, said:
“If we are to hit our 2030 target, it's vital that we can get
clean, secure and homegrown electricity flowing through the grid
as quickly as possible.
“This is why we're overhauling the application system to cut down
on delays to the hundreds of approved projects that are ready to
connect to the grid; this will in turn block hundreds of
unviable, stalled and speculative schemes in the process.
“Today we are also proposing tough new rules to ensure networks
connect to the grid quickly, reliably, and using every part of
their network capacity. We are also looking at strengthened
protections for customers connecting to the grid if they receive
poor service in order to keep investment flowing. Without this,
we risk falling short of providing cleaner, more affordable and
more secure energy for everyone.”
The ‘end to end' review has analysed and assessed each stage of
the connections process across Great Britain's three high-voltage
transmission and 14 distribution operators to look at where
changes can be made to help approved projects connect to the grid
as soon as possible.
The report notes that, whilst network companies are handling a
record volume of connections, tough but fair new regulations are
required to improve customer service and stop timelines slipping
to ensure they hit deadlines.
Ofgem is proposing companies could face stronger licences;
financial penalties; and tougher enforcement if they don't hit
stricter milestones and deadlines – with the tougher regime in
place within 12 months.
Notes to editors
The End to End Review consultation document can be found
here: https://www.ofgem.gov.uk/consultation/connections-end-end-review-regulatory-framework
Earlier this week (Tuesday 5 November), ministers pledged to
legislate in a joint-letter with
Ofgem on to underpin the reforms and limit legal
challenge.
The report backs up NESO's independent advice to ministers on
accelerating connections to achieve clean power by 2030: Clean Power 2030 | National
Energy System Operator. It comes alongside Ofgem's plans to
free up network companies to accelerate investment from 2026:
RIIO-3 Sector Specific
Methodology Decision for the Gas Distribution, Gas Transmission
and Electricity Transmission Sectors | Ofgem
The review is targeting behaviours and outcomes across seven key
themes:
-
Visibility and accuracy of connections data –
good quality, useful data must be made available transparently
to customers to inform their connection
applications.
-
Improved standards of service across the customer
journey – Connecting customers must receive a
high standard of service at all stages of the customer journey,
from pre-application to energisation.
-
Network companies being required to meet connection
dates in connection agreements –
Network companies and NESO should be required to meet agreed
customer connection dates in connection agreements.
-
Quality of connection offers and associated
documentation – Network companies and NESO should be
required to issue high-quality offers and information to
connecting customers.
-
Ambition of connection offers - Network
companies and NESO should be required to offer connecting
customers ambitious, “fast as possible” connection dates.
-
Minor connections – Minor connections
customers, i.e. those seeking to make connections at low
voltages like EV chargers and heat pumps, should receive a high
standard of service from networks.
-
Provisions and guidance for determinations –
Ofgem's role in managing complaints and issuing determinations
must be clear to all parties.
