Two-Step offer process

What is the two-step process?  

Step one: initial offer 

Customers are provided with an offer in standard terms, which identifies a connection site reflecting the requested connection point in the application and a completion date, which may change in step two. This is based on the existing Transmission Entry Capacity (TEC) amnesty queue and current Transmission Reinforcement Works (TRW) reflecting the general scale of works to enable connection for projects applying now against the current contracted background. 

It will not however include the detailed works, programme or indicative costs and charges that would usually populate the appendices. No transmission works will be identified in or undertaken for the purposes of the connection at this stage. Securities will be set at £0. Clauses will be inserted in the bilateral and construction agreement to reflect that this is an initial offer and that it, if accepted, it will be updated to identify the transmission works, programme, charges, connection site/point, and any updated terms as per step two. 

Step two: follow-up offer 

Where the step one offer is accepted, this offer will then be issued a maximum of nine months after counter signature of the step one offer. A meeting with each customer who has accepted the step one offer will be held to give an update on the wider results following the completion of the TRW review.

The meeting will also discuss when the customer can expect the follow up offer to be issued, and the likely results. The follow up offer will be updated based on the TRW review study results and contracted background, and identify the transmission works needed for each project.

This offer will include the complete populated suite of appendices for the agreement, including securities and programme of work, based on the identified TRW. These offers will be progressed in regional batches, so that they can be processed as efficiently as possible. 

Where will it be implemented? 

In Scotland, the Scottish Transmission Owners will carry out the above review while issuing new connection offers as normal. In England and Wales, National Grid Electricity Transmission (NGET) will put into a place a two-step process, to enable them to carry on issuing light touch connections offers while carrying out the TRW review. 

This two-step process is an interim measure that will run for 12 months while the review is being carried out. It is anticipated that running the review and the two-step offer process concurrently should result in improved completion dates (reflecting less reinforcement works being required), making investments more viable and allowing net zero targets to be met. 

When will it be implemented? 

The interim two-step offer process will apply from 1 March 2023, so any new connections or use of system offers that clock start from this date (by reference to the England and Wales transmission system) will be part of the two-step offer process.

This will also apply to any new connection or use of system application (whether transmission or distribution, which is offered by reference to the England and Wales transmission system) that clock start from the above date until further notice will be included.