Out-Law News 2 min. read

Northern Ireland regulator sets out 'strategic priorities' for future electricity connections


The Utility Regulator in Northern Ireland is seeking views on the effectiveness of its current electricity connections policy and arrangements against a backdrop of changing supply and demand.

A call for evidence, which closes on 11 January 2017, seeks views on the regulator's "strategic priorities", which it intends will "act as guiding principles for designing a way forward for connections policy". It is particularly keen to explore ways to improve network management; connections process management; and customer engagement, service and pricing transparency.

"The way electricity is supplied and demanded in Northern Ireland is changing," the regulator said in a consultation paper. "In particular, a lack of capacity on the network is presenting challenges for connecting to the grid."

"In light of these challenges, stakeholders have raised concerns about how well connections policy is working … As a call for evidence, this paper represents the first step," it said.

The call for evidence covers both the electricity distribution and transmission networks, and all types of connection customer. The regulator intends to use any submissions to "scope and prioritise issues", before publishing potential solutions for more detailed consultation where required.

"It has been evident over the past few years that grid management and regulation in Northern Ireland has been unable to keep up with the rate at which the demand for access to the grid and the variety of generation seeking access has grown," said energy law expert Laura Donnelly of Pinsent Masons, the law firm behind Out-Law.com. "This has inevitably resulted in connection delays and increased costs for both generators and consumers."

"Whilst it is unfortunate that this consultation has come after the closure of the renewables support scheme in Northern Ireland, if the grid is to continue to accommodate new generation it is vital that the Utility Regulator, Northern Ireland Electricity Networks (NIEN) and System Operator Northern Ireland (SONI) engage with industry to reach a consensus on what a co-ordinated, efficient and transparent regulatory framework that is fit for purpose," she said.

NIEN is Northern Ireland's distribution network operator (DNO), responsible for connections to the electricity distribution network. It also owns, builds and maintains both the transmission and distribution networks. SONI, as transmission system operator, plans and develops the transmission network. Part of the Utility Regulator's role is to protect consumers against the backdrop of this natural monopoly by ensuring that NIEN and SONI adhere to defined regulatory frameworks.

The Northern Ireland Renewables Obligation (NIRO) has, in the past, provided financial support to generators of qualifying renewable electricity projects, in line with a target of 40% of electricity consumption in Northern Ireland coming from renewable sources by 2020. The NIRO closed to new onshore wind projects earlier this year, and will close to all other technologies on 31 March 2017.

As part of its call for evidence, the Utility Regulator is particularly seeking views on whether and how the connections policy in Northern Ireland should adapt to facilitate efficient connections, in a way in which ensures that other consumers only pay what is necessary for their energy. Any changes could reflect such issues as the potential need to promote effective network management, according to the document.

The Utility Regulator is also seeking views on whether it should review the distribution charging framework as part of the review, as well as the way in which the connections process and queue is managed. Respondents are also asked for their views on whether improvements to connections customer service, engagement and transparency should be proposed as part of the review.

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