The Electricity (Connection Charges) Regulations 2017

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations make provision about the costs of electrical connections, where a person (a “second comer”) obtains a connection to premises or a distribution system which makes use of electric lines or electrical plant previously provided for the purpose of giving a connection to other premises or another distribution system. In cases where other persons have paid for all or part of the cost of the first connection, the Regulations require the relevant electricity distributor to recover an amount from the second comer and to apply that amount, less administrative expenses, to reimburse the persons who paid for the first connection.

These Regulations reflect amendments to section 19 of the Electricity Act 1989, and the insertion of Schedule 5B to that Act, by section 52 of the Infrastructure Act 2015. They supersede the Electricity (Connection Charges) Regulations 2002 (“the 2002 Regulations”) in relation to cases where a first connection (within the meaning given by paragraph 1 of Schedule 5B to the Electricity Act 1989) is made on or after 6th April 2017. The 2002 Regulations will continue to apply where a first connection was made before that date.

The principal differences between these Regulations and the 2002 Regulations (other than minor and drafting changes) are:

• to extend the circumstances in which an electricity distributor is under a duty to charge second comers and make payments to eligible persons, to include cases where:

  • a first connection was made by an independent connection provider rather than a licensed electricity distributor; or

  • any of the expenses of a first connection were met by the person who caused that connection to be made, and/or by previous second comers (under the 2002 Regulations a duty only arises where the expenses were wholly or mainly met by such persons);

• to extend from 5 to 10 years the period following the making of a first connection in which second comers are liable to pay charges; and

• to require an electricity distributor to estimate first connection expenses, and to calculate charges to second comers and payments to eligible persons on the basis of its estimate, in cases where someone else made the first connection.

An impact assessment of the effect that this instrument will have on the costs of business and the voluntary sector is available from the Department for Business, Energy and Industrial Strategy at 1 Victoria Street, London, SW1H 0ET and is published with the Explanatory Memorandum alongside this instrument on www.legislation.gov.uk.