Oireachtas Joint and Select Committees

Tuesday, 4 October 2022

Joint Oireachtas Committee on Climate Action

Energy Prices: Discussion

Mr. Joe Duignan:

I will expand on a few points. There are a number of elements to a grid connection. There is the grid connection or the electrical connection, which is our portion, but there is also landowner consents, land access and so on. Sometimes people put it all in one pot. For the electrical grid connection, as Mr. Tarrant said, the contestability is there. Customers have been able to elect to do it for the past ten years or more. The way we do our element is by having what is called "least-cost technically acceptable". We do a technically acceptable method, which is carried out by our planners and specialists, and there are planning standards that are approved by the regulator for that. We look for the minimum technically acceptable level. We are not looking for the Rolls-Royce model here. We are looking for something that works and is safe for people on the network and other users. Once we have designed that, there is a charge associated with it. The regulator's policy is that the generator who drives the work pays for it. Otherwise, it would have to be socialised across other customers and that is not a decision for networks. That cost is there. Our generator standard charges were benchmarked internationally with consultants and the regulator. They are benchmarked with the UK distribution network operators, DNOs, and they come out favourably. There is consultation by the regulator on this where the industry can put in its charges and compare. It is quite a thorough process.