The Ulster Farmers’ Union has welcomed the introduction of new connection charging arrangements which have been introduced by Economy Minister Dr Caoimhe Archibald MLA today (July 1), following prolonged calls from the union for the changes.
The new charging arrangements will deliver fairer, more affordable electricity grid connections for rural communities by spreading grid reinforcement costs across all consumers.
Commenting on the announcement, UFU deputy president Glenn Cuddy, said, “A fairer distribution of electricity grid connection costs is something the UFU have been lobbying the Department for Economy on for quite some time in a bid to help strengthen the rural economy and allow farmers to invest further in their farm businesses.
“This new arrangement will partially remove existing financial disadvantages currently faced by farmers and rural businesses who wish to increase their electricity capacity, making electricity grid connections for both import and export more accessible.
“It is particularly beneficial to farmers seeking to upgrade to three phase power, strengthen the electricity infrastructure supplying their farms, or invest in small-scale renewable energy projects.”
However, the measures will be subject to a ‘high-cost cap’, which has been set at £1,000 per kVA for demand/import, while the generation/export cap is £200 per kW.
The deputy president said the high-cost cap must be kept under review during the early stages of the new arrangements.
“It is important that the high-cost cap, particularly for export, is monitored in these early stages of the new arrangements,” said Mr Cuddy.
“We want this to have a real impact for farmers who wish to export and cannot due to the cost of a grid connection, but there is a risk that the high-cost cap is set too low and will further prevent otherwise viable farm-scale projects.
“The UFU will continue to monitor the new arrangements, including the impact of the current high-cost cap, the application process and its implementation to ensure it genuinely enhances business opportunities for farmers in rural areas and supports overall rural growth.”
Farmers can find out more information on the policy here: https://www.economy-ni.gov.uk/publications/decision-fairer-grid-connection-costs
