DNOs, IDNOs & Connection Providers

DNOs, IDNOs & Connection Providers

When new developments require electricity supply, the organisation who owns the cables in that area will confirm whether there is available capacity. This Distribution Network Operator (DNO), will also own or ‘adopt’ any new cables or infrastructure installed to provide the supply. However, there is another option as Independent Distribution Network Operators (IDNOs) can also own the new network.

What is a Distribution Network Operator (DNO)?

Licenced by Ofgem, the 14 Distribution Network Operators (DNOs) across England, Scotland and Wales (responsible for a specific geographical area) are owned by six ownership groups:

• Electricity North West
• Northern Powergrid
• Scottish and Southern Electricity
• ScottishPower Energy Networks
• UK Power Networks
• Western Power Distribution

The above DNOs operate and maintain the electricity infrastructure (such as pylons, substations and cables) and are responsible for remedying any power cuts or faults. The DNO will ‘adopt’ any new cables or substations to their network in order to install a new supply.

What is an Independent Distribution Network Operator (IDNO)?

Independent Distribution Network Operators (IDNOs) also own, operate and maintain the electricity infrastructure. The networks which they adopt are the new, installed assets which will integrate into a DNO’s network. Unlike the DNOs, they are not restricted to a specific geographical area. They are regulated by Ofgem in the same way as DNOs are, although with slightly amended licence conditions. 

What is the difference between getting my new connection adopted by the DNO or IDNO?

Regardless of whether your new connection is adopted by the DNO or the IDNO, each is equally responsible for the operation and maintenance of the installation. 

If you ask the DNO to install your new connection for you, it can only be adopted by the DNO.

If you ask an Independent Connections Provider (ICP), to install your new connection for you, it can be adopted by either the DNO or an IDNO.

The key difference is that the IDNO will offer an upfront sum of money, called an ‘Asset Value’, which is payable upon energisation of your supply.

The amount of the Asset Value is dependent upon the amount of energy to be used and whether it is metered at High Voltage (HV) or Low Voltage (LV). 

The role of CLM

Primarily CLM act on behalf of Independent Connection Providers to manage and facilitate any land rights consents which may be required on a project. CLM acquire consents on behalf of:

• Independent Distribution Network Operators (IDNOs)
• Distribution Network Operators (DNOs)
• Independent Gas Transporters (IGTs)
• Gas Transporters (GTs)

How CLM support IDNOs

CLM act on behalf of statutory undertakers, connection providers and private landowners. We have a vast range of experience in the negotiation, management and legal completion of easements, land acquisitions, wayleaves and consents, associated with new electricity, gas and water connections.We recognise the importance of bridging the gap between landowners, connection providers and the adopting networks and provide effective management, ensuring lines of communication remain open throughout the process and legal agreements are completed without delay.

How CLM support the Independent Connection Provider

As CLM are not limited to one network or utility we are not restricted in terms of who work with or where we work. We act on behalf of the ICP, talking directly to their client and managing all consent requirements. The benefits of using CLM include:

• Reduces project risk from unknown third parties
• Professional approach
• Client aware of risks
• Cost certainty

We also provide specialist advice to Independent Connection Providers in relation to proposed routes and regularly carry out route proving exercises in order to provide clarity on any possible consents, as early as possible. This involves our team reviewing a proposed route(s) and identifying any third party interests. We are experienced in managing complex third party negotiations with landowners, Network Rail, Canals and Rivers Trust, The Crown Estate and other national stakeholders.

The forms of consent managed by CLM include:

• Deed of Grant of Easement
• Lease
• Land Acquisition – Transfer of Part
• Wayleave Agreements
• Construction Licence

Contact us

CLM provide the unique, single focused approached needed to ensure projects are delivered on time.

Call our team on 01780 755355 or email us at [email protected] for more information.