When planning an electricity supply for a new development, one of the key steps is to consult the organisation that owns the local cables to ensure there’s available capacity. This organisation is known as your Distribution Network Operator (DNO), which also owns or adopts any new infrastructure installed to supply electricity.
However, working with a DNO isn’t your only option. Independent Distribution Network Operators (IDNOs) can also own and manage new networks.
What is a Distribution Network Operator (DNO)?
The electricity distribution network is responsible for transporting electricity from the national transmission grid (managed by National Grid) to homes and businesses. Across England, Scotland, and Wales, there are 14 DNOs, each responsible for a specific geographic region.
Licensed by Ofgem, DNOs own, operate, and maintain the electricity infrastructure—such as substations, pylons, and cables—and are accountable for fixing any issues like power outages. When you request a new electricity supply, DNOs will integrate any newly installed cables or substations into their network.
What is an Independent Distribution Network Operator (IDNO)?
Independent Distribution Network Operators (IDNOs) similarly own, operate, and maintain electricity infrastructure. The networks they manage typically consist of newly installed assets, such as connections to new developments, which link back to a DNO’s network.
Unlike DNOs, IDNOs aren’t limited to specific geographical regions. While they are regulated by Ofgem just like DNOs, IDNOs follow slightly different licensing conditions.
How Are Energy Suppliers Different?
It’s important to note that gas and electricity suppliers are separate entities from DNOs and IDNOs, which own the distribution networks. Your energy supplier is the company you pay for your gas and electricity usage. When setting up a new electricity supply, your supplier is responsible for arranging the meter installation.
How Do DNOs and IDNOs Generate Revenue?
Both DNOs and IDNOs generate revenue through Distribution Use of System (DUoS) charges, which are part of your energy bill. These charges apply to every connection to the distribution network. Your energy supplier collects these fees from you and then pays the DNO or IDNO accordingly.
DNO vs. IDNO: What’s the Difference in Adopting a New Connection?
Whether your new connection is adopted by a DNO or an IDNO, both are equally responsible for its operation and maintenance. If you have the DNO install your new connection, it can only be adopted by them.
On the other hand, if an Independent Connections Provider (ICP), such as EEMU, installs your new connection, it can be adopted by either the DNO or an IDNO. There are several benefits of choosing an IDNO, including a wider range of approved equipment and an “Asset Value” which is provided upon the energisation of your supply. When EEMU provides a quote, this Asset Value is included, often making it a more competitive option compared to the DNO’s proposal.
The amount of the Asset Value depends on factors such as the expected energy usage and whether the connection is at High Voltage (HV) or Low Voltage (LV).
How Can EEMU Assist You?
With our extensive experience and technical expertise, EEMU manages a wide range of ICP projects across the UK, ensuring they are completed on time and within budget.
By choosing EEMU for your new or upgraded electrical connection, you can trust us to deliver a tailored engineering solution that meets your specific needs. Each of our clients works closely with a dedicated EEMU Project Manager to develop a project plan that aligns with their requirements and is flexible to their needs.
We’d be happy to provide you with a quote for your electrical connection project. Please reach out to Enquiries@eemu.co.uk to learn more.
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