UK Electricity Connection Charges Regulations 2017: A Second Comer Guide

Key Takeaways

• The regulations are formally titled "The Electricity (Connection Charges) Regulations 2017" (August 2026).
• They establish a 10-year liability period for "second comers" (August 2026).
• The statutory basis is Schedule 5B to the Electricity Act 1989, inserted by Section 52 of the Infrastructure Act 2015 (August 2026).
• Distribution Network Operators (DNOs) calculate reimbursement payments when subsequent connections occur (August 2026).

Understanding the UK Electricity Connection Charges Regulations 2017

The UK Electricity Connection Charges Regulations 2017, formally cited as "The Electricity (Connection Charges) Regulations 2017" (S.I. 2017/106), establish a statutory framework for sharing the costs of electricity network connections. These regulations are crucial for developers of new generation and storage projects in the UK.

The legal foundation for these regulations is "Schedule 5B to the Electricity Act 1989", which was inserted into the Act by "section 52 of the Infrastructure Act 2015". This framework creates the "second comer" rule, a mechanism designed to ensure fairness in the recovery of connection costs.

The "Second Comer" Rule and Liability Period

The "second comer" rule dictates that subsequent connections to the electricity network must reimburse initial developers for a portion of their original connection costs. This applies when a "second connection is to be made" to assets that were part of a "first connection".

A key provision of these regulations is the extension of the liability period. The rules "extend from 5 to 10 years the period following the making of a first connection in which second comers are liable to pay charges". This means that for a full decade after an initial connection, new projects connecting to the same infrastructure may be required to contribute to the original costs.

First Connection Expenses and Reinforcement Works

"First connection expenses" covered by these regulations include specific types of infrastructure development. These encompass "reinforcement works", which are defined as "works that add capacity to an existing distribution system". These works, along with dedicated assets, can be delivered by licensed Distribution Network Operators (DNOs) or accredited "independent connection provider" (ICPs).

Distribution Network Operators (DNOs) have a duty to calculate "reimbursement payment" amounts when subsequent developers connect to previously funded assets. This ensures that the cost-sharing mechanism functions as intended.

Dispute Resolution

In instances where disagreements arise regarding cost sharing, the regulations provide a clear path for resolution. Cost sharing disputes between initial contributors, subsequent contributors, and DNOs are determinable by the Gas and Electricity Markets Authority (Ofgem). This ensures an independent body can arbitrate and provide a definitive outcome.

Further Guidance

For more detailed information on related regulatory frameworks, you may find our guides on the UK Electricity Licence Exemption Order 2001, UK Feed-in Tariffs Order 2012, and UK Renewables Obligation Order 2015 helpful.