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- Electricity boundary metering rules to change -
- Developers to benefit from reduced timescales and costs -

New Ofgem policies, set to benefit developers by reducing timescales and costs, are due to come into force from 1st April 2010. GTC, the nationwide provider of utility infrastructure to the new-build market, has been working closely with Ofgem to overcome the issue of electricity boundary metering. On 2nd March 2010, Ofgem announced that if upstream regional Distribution Network Operators (DNOs) require boundary metering, it will be at their expense.

For the developer, boundary metering has been very unpopular and has meant that expensive, large and unsightly equipment has had to be installed on most new developments. The considerable size of the metering equipment creates land-take issues, which in turn often incurs high legal costs and adversely impacts timescales.

This recent decision overturns Ofgem’s 2005 position that boundary metering equipment should be funded by Independent Distribution Network Operators (IDNOs). Under the 2005 decision DNOs insisted that metering be fitted at all connection boundaries to IDNO networks to measure electricity conveyed. It should be noted that DNOs did not install such metering in respect of developments served by their own network extensions.

GTC has actively contested the 2005 ruling as a barrier to true competition. Ofgem also recognised this disparity in its January Connections Review which stated that nationwide electricity connections to an IDNO network stands at 11% compared with the 77% of independent gas connections.

GTC is delighted with the Ofgem decision and believes that this lead to a dramatic reduction in the need for boundary metering, particularly for low voltage networks. This means that underground point of isolation solutions - such as link boxes in public highways – are a sufficient and entirely appropriate arrangement for connections between the DNO and IDNO network. Recognised industry systems will now be used to record usage. This dramatically scaled-down approach will create savings for all involved both in terms of cost and time.

Clive Linsdell, Managing Director of GTC, says: “This is an important time; Ofgem’s decision will offer results in cost savings for developers and also signals a significant shift towards a fairer electricity market. Previously, disproportionate costs were borne entirely by the IDNO and this greatly restricted competition. We are pleased that our work with Ofgem has come to this very satisfactory conclusion.”

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