DNOs to face stiffer competition in connections market

Distribution network operators (DNOs) will face stiffer competition, under a new Ofgem code of practise for the electricity connections market.

The code, introduced by regulator Ofgem, will limit the number of essential services that DNOs will be the sole provider of, and force them to provide an equal service to competitors in providing technical information.

Ofgem said DNOs are taking “too long” to state the location on their networks where the connection can be made. After the code is implemented the independent company will be able to choose the location of the connection, which will “significantly speed up the process.”

Accreditations and authorisations for engineers certified to work or design connections will be applicable across Great Britain, and will not have to be approved by DNOs if independent.

DNOs must also have a consistent inspection and audit regime for adopting all connections, regardless of who has undertaken the work.

The development of the first ever code for DNOs follows a review of the connections market carried out by Ofgem.

Ofgem said Electricity North West Limited and Western Power Distribution have made “progress” in opening up the connections market in the areas they serve, but “it is clear that a binding code is needed” to “improve the consistency of arrangements across Great Britain”.

Ofgem senior partner electricity distribution Maxine Frerk said: “We want to see competition in the electricity connections market thriving. While some DNOs are helping to achieve this, many independent companies still face unnecessary delays and needless complexity.

“This has to stop and our code of practice will ensure that independent companies are treated fairly and consistently across the country. This means housing developers, businesses and other organisations will get real choice in who delivers their connections, leading to quicker completion and higher customer service standards.”

The electricity connections market is worth £500 million every year, with hundreds of thousands of connections made annually.

Independent DNOs compete with regional DNOs to make connections primarily to new housing estates and business premises, improving customer service in the market and reducing costs in the process.

The code will come into effect on the 30 October.

Last week the Energy Networks Association said IDNOs have “an important role to play as part of an increasingly competitive networks sector.”