Distributed Generation FINAL PROPOSED POLICY on Letters of Authority (LOAs) for large (G59) distributed generation connection requests Background Currently Connections process all applications for connection quotations regardless of the applicant’s status. Due to the high volumes of Distributed Generation (DG) applications currently being received in particularly in the EPN and SPN areas UKPN is providing poor customer service in terms of time to quote, and is at increased risk of licence breach with regards to the timeliness of issued quotes. Having been notified that other DNOs require a Letter of Authority (LOA) from generation connection applicants a ‘New Matters Form’ was raised with the Legal team to clarify possible use of LOAs to manage volumes of applications. Their advice concluded that ‘in principle, it is possible to construct an argument around LC12 and Section 16 of the Electricity Act 1989 (Act) to justify requesting a letter of authority (LOA) from generation applicants. However, whilst the requirement may be possible in principle, it would mean a change in connections policy which raises a number of important considerations’. These have been taken in account in the development of this policy. A number of other DNOs (not all) also require Letters of Authority for some or all applicants. Responses form the other DNOs are in Appendix 1 Stakeholder Engagement DG has been an area of growth for the last 2-3 years. Recognising this we introduced in late 2012 the first of a series of planned Customer Experience Workshops specifically for the DG community. These provide the opportunity for customers to meet with us to share their concerns and for us to share our plans for improving levels of customer service via a DG Service Improvement Plan. Since their introduction we have now held five workshops. These have been well attended and we’ve take the opportunity to share with the attendees our intention to introduce a requirement for Letters of Authority to accompany grid connection requests for large (G59) DG projects. At the last workshop on 27 February 2014 all attendees were given the opportunity to provide feedback and there no challenges. Policy Change Proposal With effect from 1 June 2014 Connections will only process requests for large (G59) DG connection applications in EPN and SPN where the applicant has either confirmed they are the owner/occupierr or hold a Letter of Authority from the owner/occupier What applications will this apply to? All requests for non-contestable only quotations or full ‘s16’ quotations, where the applicant requires a generation connection in either EPN or SPN PLEASE NOTE WE CANNOT REQUEST A LETTER OF AUTHORITY FROM AN IDNO We can require a LOA for all section 16 applications but at this time are enforcing it for DG connections only How long will this continue for? The policy is not intended to be temporary but will be subject to review when external or internal changes dictate, for example if upfront charging of A&D were re-introduced Why not LPN? Volumes of generation applications in LPN are manageable Why not Demand connections? Volumes of demand quotations are manageable. The technical expertise of these applications is not as specific as that of generation. Who will check whether an application has a Letter of Authority? Gateway What will UKPN offer where an applicant does not have a Letter of Authority? A Free Budget Estimate or a Feasibility Study (Chargeable) How will we communicate this proposed change to the DG Community? Communication with all relevant UKPN Connections employees Email to all DG customers on our database in early May Update to website following email to customers DG CEW on 22 May 2014 Process 1. Applicant submits application to Gateway. 2. For relevant applications Gateway checks basic information and returns the application to the customer with a standard response if there is neither an apparent Letter of Authority nor a statement to the effect that the applicant is the land owner or occupier a. The standard response requests that the applicant confirms that they are the land owner or occupier or that they are acting on behalf of the landowner as an agent and b. Informs the applicant that they can apply for a free Budget Estimate or a Feasibility Study (the latter being chargeable) 3. Applications will not be processed until ownership has been confirmed or until a LoA has been received 4. Where the applicant requests an IDNO quotation in the same e-mail as a s16 / ICP option and the LoA / land owner/owner confirmation is missing, the IDNO application must be set up and processed as normal. 5. Where applications are received with an apparent Letter of Authority Gateway will process the application as normal setting up in CQS / CiC2 / GRT as appropriate, and passing through to Projects Prelims / CiC / Major Connections(i.e. the assumption is that the LoA or statement of landownership is valid) 6. The responsible team (i.e. the team dealing with the application) will be responsible for checking the validity of any Letters of Authority received. This is not necessarily checking all LoAs but a small regular sample. Checks would include whether the land in question relates to that in the application If the clock has started, i.e. it is an ‘in-flight’ application, i.e. we have received a LoA or confirmation of land ownership, then either Exempt the job under 5.7 (e) and cancel the quote, or issue the quote with a condition that ‘an additional requirement for acceptance of this quote is provision of a suitable LoA’. In each case a judgement call will be required on whether to issue a (conditional) quote or to exempt. As always suitable notes must be recorded in project files, and clear communication to customer on our course of action made. Letter of Authority A Letter of Authority will need to be provided for large (G59) DG applications in EPN and SPN areas. A model form of Letter of Authority is provided in Appendix 2 Large (G59) Generator Checklist A checklist for use by customers is provided in Appendix 3 Appendix 1 WPD: Official Company line is that we may request a LoA for all applications where the person applying is not the owner or occupier. In practice however, we tend to relax the requirement with the exception of generation enquiries. [NM requested clarity] Yes, we will ask them for the LoA before providing the quotation. SSE: Very similar to WPD - we may request a LoA for all applications where the person applying is not the owner or occupier (or an IDNO). In practice however, we always ask for one from any ICP (POC because it’s an ICP we are quoting) or generation (POC or Section 16) enquiries - where there is a genuine reason to require the LOA based on [our] experiences. If they cannot provide a LOA we give them a budget estimate. SP: We certainly request this with all DG applications NPG: We tend not to ask for a LOA as a matter of course but there may be circumstances where it is necessary. ENWL: We’d general [sic] not require a Letter of Authority Three DNOs, WPD, SSE and SP, appear to require Letters of Authority for a subset of applications i.e. generation (and in the case of SSE ICP applications as well (!)) NPG and ENWL both appear to not require a Letter of Authority but neither have slammed the door shut. Appendix 2 MODEL FORM OF LETTER OF AUTHORITY To whom it may concern Re: [Address of property] grid application We [insert name] of [address of property] confirm that we are the legal and registered owner/occupier of the land situated at [address of property], as outlined red within the plan below. We would like to confirm that we have appointed [name of Company appointed] to develop a [confirm type of technology] on our land and hereby grant permission for them or any consultant that they may authorise to seek and apply for a grid connection on our land for the purpose of connecting a [confirm type of technology] project to the local electricity distribution network. Signed………………………… Name (CAPITALS)……………………………………. Date……………………………. [insert plan] Sample Plan (shown below) to be OS based clearly showing the boundaries of the land referred to above. Appendix 3 LARGE (G59) DG CONNECTION APPLICATION CHECKLIST G59 CHECKLIST PLEASE SUBMIT THIS FORM WITH YOUR COMPLETED ENA APPLICATION FORM FOR A G59/3 GENERATOR CONNECTION How firm are your proposals? Alternatives available to you If your proposals are not firm Budget Estimate Feasibility Study Description Please indicate your requirements A basic desktop estimate without any system studies. It is not a binding offer on you or us A chargeable electricity system study to give a more detailed view of the likely price of connection for various options If you know what and where you want to connect Section 16 Connection Offer UK Power Networks will quote for undertaking all the contestable and non-contestable works Standard Licence Condition 15 CIC UK Power Networks will quote for undertaking the nonConnection Offer contestable works only. You MUST arrange to undertake the contestable works. IDNO Point of Connection Application UK Power Networks will quote for providing a point of connection to our network only What to send to us Included Y/N 1 Completed ENA G59 application form containing all contact details and appropriate technical details 2 Site Plan as follows At a scale of at least 1:500 Including the six figure X, Y OS grid co-ordinates Showing some identifiable landmarks such as roads Showing the proposed site boundary Showing the proposed loaction of incoming connection point 3 A Letter of Authority (LOA)* from the landowner or occupier (a model form letter can be found on our website) where the applicant is acting as an agent of the occupier or landowner 4 5 6 A single line diagram (SLD) electrical schematic diagram of the proposed installation showing: the location of the protection systems, the associated automaticee disconnecting devices, the interfac with UK Power Networks and the customers network including loads, generators, transformers, circuit breakers and cables etc. Fault level data - this is the fault level contribution from your installation/equipment into UK Power Networks network (not the rating of your equipment) at your preferred connection voltage Details of harmonics and flicker, and any other disturbing equipment you plan to connect Your application will not be processed if any of the above are missing Where to send the application to: Please email both your application form and this checklist to: connections.gateway@ukpowernetworks.co.uk * The requirement for a Letter of Authority is effective for all new applications from 1 June 2014. Applications received without an accompanying Letter of Authority will not be processed.