How Much Does a New Electricity Connection Cost?

A man and a woman on a building site looking at plans
March 9, 2023
Min Read

The Cost of a New Electricity Connection Explained:

When moving to new premises, so you may be concerned about keeping your energy expenses in check. In this article, we outline some of the costs you can expect when setting up a new electricity connection for your business, to help you avoid any nasty surprises.

If You’re Moving to New-Build Premises

If your premises are newly built, you will be required to pay your Distribution Network Operator (DNO) for the costs associated with the connection.

The cost of a new connection can vary depending on a number of factors, including the location of the connection, the capacity required, and the complexity of the connection. In some cases, the cost of a new electricity connection can be significant, particularly for larger commercial or industrial connections.

The DNO will typically provide a quote for the cost of the new connection, which will include the costs associated with designing and building the necessary infrastructure, as well as any ongoing maintenance costs associated with the connection.

Additional costs may include planning permission, any permits, skips, etc. These will be included in your quote from the DNO.

Finally, if any of your machinery (other than your meter) needs to be wired in, you will need to appoint an electrician to do this.

If Your New Premises are Already in Use

If your new premises already have a meter end point, the costs are likely to be significantly lower than if you’re moving to a new-build site.

You may still need a new meter, depending on your circumstances. For example, if your predicted usage requires you to change from a standard meter to a Half Hourly Meter.

New Meters

If you need a new meter, you will first need to find a supplier. For more information about this, read our guide to business energy procurement. The supplier will arrange for the installation of the meter. This may involve working with a third-party contractor to install the meter and any necessary communications equipment. The cost of the meter is usually covered by the supplier up front, and rolled up into the cost of your energy.

Energy Tariffs

When searching for a new supplier, you may be able to save money by shopping around for a suitable tariff.

Despite fluctuating energy costs, many businesses are still opting for a fixed-term tariff. This is because out-of-contract rates (or ‘deemed rates’) are typically more expensive for commercial customers than fixed rates.

Searching the market when you’re in the midst of a move is time-consuming, so you may want to use a third party intermediary, such as Tritility, to source the energy contracts for your business. We will not only match you with the right energy plan for your needs, we can also support you with all aspects of setting up a new electricity connection.

In Summary

To summarise, the costs associated with a brand new electricity connection include:

- Groundworks (laying pipes and cables)

- Planning permission

- Meter installation (rolled up into the cost of your energy)

- The cost of an electrician to install hardware, if needed

- Skips and waste removal

- Infrastructure and maintenance costs

For advice and help with setting up your new premises, get in touch and we’ll be happy to help. And if you need to source a new energy tariff, why not start by getting a quote, and let’s see how much we could save you.