UK energy regulator Ofgem has approved a three-month delay proposed by National Grid ESO to finalising grid offers under a new two-step process that has been in force since March 2023.
The UK ESO will start to issue second step offers from this week, with the commitment that all second step offers will be issued by 31 May 2024.
The move follows a sustained increase in projects joining the queue that meant there were over 150GW of new connection requests spread across 500 contracts requiring two-step offers – over double the original estimate.
Despite some schemes having no intention to build, the current connections process means all sites are treated as viable, meaning connection dates are affected by associated transmission reinforcement works, the ESO said.
As a result, and as second step offers reached the advanced stages of assessment and processing, it became clear that the anticipated benefits would not be delivered, with approximately 60% of customers receiving a later connection date, it added.
Recognising this was not an acceptable outcome for customers, the ESO has worked with National Grid Electricity Transmission on an alternative assessment methodology for considering wider system enabling works, aligning with the forthcoming outcome of the Transitional Centralised Strategic Network Plan (tCSNP).
The ESO said this action will improve the range of second step customer connection dates overall.
It means 60% of customers will receive a better or aligned date to their first step offer, it added.
At this point in time, 40% will receive a date beyond their first step offer but we are working to see if these can be further improved.
The ESO’s interim director of engineering and customer solutions David Wildash said: “While the two step offer process was one of a set of short term initiatives that have been implemented, we recognise that the outcome of this process is not what was envisaged at the outset.
“The outcome will be hugely disappointing to our customers, who were rightly under the impression that their second stage connection dates would accelerate.
“The ESO will continue its collaboration with the government, Ofgem, transmission owners and the energy industry to deliver long-term reform to the connections process.
“With enduring, impactful reforms, the connections queue can be unblocked and Britain can keep building to deliver net zero.”