Murphy seeks views on changes to electricity reinforcement connection charges
Economy Minister Conor Murphy has 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.”