New business electricity and gas connections

Who does what in a new connection

Getting energy to a site involves several different organisations. The one you pay for the connection is usually not the one that supplies your energy afterwards.

You do not choose your DNO or gas transporter: that depends on where the premises are. You can choose who carries out the contestable parts of a connection, and you choose your supplier. Network operators own the cables and pipes; suppliers sell the energy that runs through them. Both DNOs and IDNOs hold electricity distribution licences from Ofgem, and whichever owns the network serving your site, you still choose your own supplier.

Getting a new electricity connection: the steps

1. Work out what you need. List the equipment you will run, then have an electrician or consultant estimate the load in kVA and whether you need a single or three-phase supply.
2. Apply to the network operator. The DNO for the area processes the application, decides the point of connection to its network and quotes for the work. Its published connection charging methodology sets out the information it needs and how it manages the request.
3. Decide who does the contestable work. You can accept the DNO's quote for all of it, or ask an independent connection provider to quote for the contestable part. Non-contestable work stays with the DNO.
4. Agree the terms and the works. Ofgem says connection charges must be cost reflective and calculated under the operator's connection charging methodology. If an ICP builds part of the connection, there is a Construction and Adoption Agreement with the network operator.
5. Arrange a supplier and a meter. The new supply point gets its own MPAN. Before the supply goes live, a supplier needs to be registered to it, and the supplier arranges the meter through a meter operator.
6. Agree a supply contract. Do this in good time so the new site does not start life on deemed rates.

Ofgem calls a change to an existing supply, such as moving from single to three-phase or increasing capacity, a service alteration. It follows the same route: you apply to the network operator, not to your supplier, and it quotes as it would for a new connection.

Contestable and non-contestable work

Competition in connections means some of the work does not have to be done by your network operator. Ofgem's connections guidance splits it like this:

Electrical contestable work must be carried out by a qualified independent connection provider registered with Lloyd's Register under the National Electricity Registration Scheme (NERS), which records the scope of work each provider is approved for. Civils work, such as trenching, can be done by you or your own contractor with the network operator's approval. Where a third party builds part of the connection, the network operator adopts the new assets under a Construction and Adoption Agreement.

Whether going to an ICP is worthwhile depends on the job, so ask for quotes on the same scope and compare what each one includes.

Single-phase, three-phase and capacity

Two technical questions shape any new or upgraded electricity supply.

Phases. Smaller premises are often supplied with a single-phase supply. Premises with heavier equipment, such as larger motors, commercial kitchens or several large heating or charging loads, may need three-phase. Your electrician can tell you what your equipment needs, and the network operator tells you what the network can provide at that location.

Capacity. The size of the connection is set as a capacity in kVA. For larger supplies this becomes the agreed capacity in your connection agreement, and on half-hourly sites the bill includes a daily capacity charge on that figure, whether you use it or not, plus excess charges if demand goes above it. Asking for far more than you need can cost money every day; asking for too little can mean another application later. Planning a realistic figure, with some allowance for growth, is worth the effort.

Larger supplies are usually metered half-hourly. Our guide to half-hourly meters explains what that means for metering and settlement.

Getting a new gas connection

Ofgem's factsheet for industrial and commercial premises describes three ways to get a one-off gas connection:

Some gas transporters operate nationally rather than in one region; Ofgem's factsheet notes that they generally build new networks for housing estates and may also connect other premises. The pipework from your meter to your appliances is not part of the connection: Ofgem notes that a Gas Safe registered engineer must install it, and some UIPs offer to do this as well.

Once the connection is in, the supply point has an MPRN and a supplier arranges the meter. Larger gas sites must have advanced meters that the supplier can read remotely, and smaller sites can have smart meters. See MPRN number, smart meters for business and our guide to business gas.

Meters, supply numbers and the supply contract

A connection gives you a supply point; it does not give you energy on terms you have agreed. For that you need:

• A supplier registered to the new supply point, which takes responsibility for metering and billing.
• A meter, fitted by the supplier's meter operator or metering agents. Larger electricity sites need a half-hourly meter and a meter operator contract; smaller sites may get a smart meter. Our business electricity meters guide covers the options.
• A supply number: an MPAN for each electricity supply, issued by the network operator, and an MPRN for each gas supply. Suppliers quote against these numbers. See MPAN number.
• A supply contract, with a tariff type and term that suit how the new site will use energy. If energy is used before a contract is agreed, the supplier can charge deemed rates.

The supplier needs an estimate of annual consumption to quote. For a brand-new site there is no history, so a realistic estimate from your equipment list and opening hours helps.

If something goes wrong with a connection

For problems with connection works, start with the company you contracted with and use its complaints procedure. Ofgem's connections guidance sets out the next steps:

• Energy Ombudsman: if a complaint about a network operator is unresolved after eight weeks, or reaches deadlock, domestic and microbusiness customers can take it to the Energy Ombudsman.
• Ofgem determination: Ofgem may be able to determine some disputes with a network operator, such as the cost of a connection or the terms of a connection offer. Larger businesses can ask once the operator's complaints process is exhausted. Ofgem can usually determine a dispute up to 12 months after the connection is completed, although you will normally pay for the work up front.

Ofgem publishes guidance on how it determines disputes about connection to energy networks. Keep copies of the connection offer, correspondence and any agreed dates.

For problems with your supply contract or bills once the site is live, the route is the supplier's complaints process, then the Energy Ombudsman. See the Energy Ombudsman website for what it covers.

How we can help

We do not carry out connection works, and neither does Fidelity Energy: that is a job for the network operator and connection providers. What we can do is help you coordinate the energy side around the works. We help gather the details a supplier needs, explain metering and tariff choices for the new site, and introduce you to Fidelity Energy, an independent energy consultancy and broker that gets quotes from its network of business energy suppliers and arranges the supply contract you choose. Fidelity Energy also manages meter operator contracts for half-hourly sites and coordinates gas and electricity meter installations, and says it supports new site connections.

Planning a new site or a bigger supply? Contact us with the address, what you plan to run and where the works have got to. Already connected at another site and want to compare offers? See compare business energy on our sister site.