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Price of new connection to the grid.


Lordster

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Hi, I have recently been given a very high quotation by SP Energy Networks and was looking for some advice.  I have acquired a workshop (planning was only given in October) with some land with a view of putting a shepherd hut on the ground with a hot tub and using the workshop for working on a couple of project cars.  There is a High Voltage pole 10 meters from the workshop on my ground, I realise that I will need a transformer so I thought I would get a quote for a new connection. When I initially contacted SPEN the woman on the phone said that she would be doing the quotation and asked if I could do some of the work myself to keep the costs down which I was more than happy with, it is known as contestable work and is shown on her workings out.  She said that it would be in the region of £6k which was fine, when I received the quote it was nearer £18k!!  If I did the contestable work it was £49 more than if SPEN did all the work themselves!!!

 

There are a lot of different charges on the documents not all that I properly understand but it does seem that they have hit me with everything they can including a charge for hand delivering the letters!  I have contacted the same woman from SPEN and was told she was sorry but that was the price.

 

I have attached a docs from SP Energy Networks and any advice on possibly reducing the costs would be great unless you think that it is a fair price!  Thanks

 

 

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Nothing attached. 
 

I had a similar mental initial quote for 3 phase (£26.5k) the final cost for single phase was £475. This was with SSEN. I got a few quotes with them over the time and what I learnt was the planners aren’t consistent. For example, I let the first quote lapse and got a second quote for 3 phase and it was reduced to £15k for no apparent reason. However my connection wasn’t coming from a HV line. The fact that the contestable quote is dearer would suggest something is amiss with the quote. Therefore challenge that. Ask to speak to someone else or just phone in and speak to someone else. 
 

I thought the pricing had changed such that you no longer pay the full cost on your own as the cost is spread across the whole customer base. 

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Unless you can get the price down I would be going off grid.  Solar PV and batteries for small loads and lighting,  Diesel generator for large loads, should only be needed occasionally, welder etc.  Wood fired hot tub.

 

It would be interesting to see the quote.

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I helped a friend go off grid on an AirBnb let shed. 1.2kW for £1,700 and it's been running for 4 years. With better panels and batteries you could easily get up and running for a lot less money and time than the connected supply. Have a look at the Bimble Solar web site for some package quotes. 1.2kW is a bit light but it is possible to plug in a hedge trimmer so a 5kW rig would be easily enough.

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3 hours ago, Kelvin said:

the cost is spread across the whole customer base

That can apply if the work is of benefit beyond your own project.

For example i had an industrial client and it needed a new trandormer (one of those big ones, fenced off.

They quoted many tens of thousands, but a specialist got that halved as there was spare capacity for future development.

Clearly the electric company was trying it on.

Might that appply to you?

 

Also look further afield. Is there other power nearby?

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5 hours ago, Alan Ambrose said:

Think you forgot your attachment. I have a vague memory that these quotes were meant to use a standard price list? Wouldn’t surprise me if the DNOs tried it on though - monopoly pricing and all that.

@Alan Ambrose that was my exact thought, I’m pretty sure because the DNOs have a monopoly the regulator agrees/approves standard pricing eg per meter etc.  I have specific recollection of finding a price list for Openreach for telecoms fur my own project.

 

that said @Lordster even if there is standard pricing you need to scrutinise as different people could assess your project differently thus resulting  in different quotes.  Suggest you post the quote here.

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Most of your costs do not seem to of whack with what was quoted in this previous thread -

 

 

The problem sounds like you want the network upgraded in a place that will be of no use to anyone else, so you bear all of the costs.

 

Looking at the quote, the one thing I would be asking about is the Land Right costs as the pole is already there and already on your land so I wouldn't think an easement is required. It may be that SP want a new easement drawn up and put into your deeds for future owners.

 

If someone else has power within a few hundred metres of you, it could be cheaper to dig your own trenches and connect to their transformer, but I would guess you have already looked into that.

 

The reality of the costs is that there would be a lot of work and disruption involved for very little benefit to the wider public. It seems like they would have to disconnect other people's power for some period to get you connected. Thus the hand delivered letters, project management etc. It also sounds like it is in the middle of nowhere so they want to charge the costs of getting there.

 

Considering the intermittent use that will likely be made of the site a generator would seem like the best option. It would probably cost in the region of £1k. It depends a bit on what kind of equipment you are using.

 

A hot tub could hold around 500litres of water. It would need 15kWh to heat that from 15 to 40C. That would take a few hours on an electric heater and would require a very large battery on a solar system. I would look into a propane hot tub heater or wood system.

 

https://supaheater.co.uk/product/supa/?campaign=Pmax-Sales-K2L&content=&keyword=&gclid=CjwKCAiA75itBhA6EiwAkho9ewGQa66DZzg8xVZ2V0-1vKDdjlvJmh_Ehz3WM7AEKa6l6wmAsFpB2hoCOW4QAvD_BwE

 

If you take the hot tub out of the equation you can look then at a small generator or solar/batteries depending on what you are looking to do in the workshop.

 

 

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Thank you for that, it is interesting reading.

The workshop side of things I can operate solar and run a good size genny to power my 2 post lift, it is the hot tub that is the focus for me, if I have paying customers staying at the site then a mains connected hot tub is a must as I don't think most people will want the fuss of having to light a wood burning tub and waiting 5 or 6 for it to warm up!

But then who knows.....

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  • 1 month later...

Just an update on this....

 

I have received a requote from SP Energy that is nearly £4k cheaper than the initial, what has triggered the lower cost I do not know, the reply I got when I asked SPEN was 'after Discussions with my manager alterations were made!'

 

I had contacted my MP to say how unfair I felt the charge was when I was trying to bring in tourism to the area....so he may have helped but I have not had confirmation from him that that is the case.

 

It is still a lot of money but it will add value to the property.....so I will have a think.

 

Thanks

 

 

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If you read any advice on DNO pricing it’s always the same, challenge the first quote. It ought to be fair and transparent pricing given it’s a necessary utility that you can’t simply buy on the open market but it’s not. You’ve got a substantial discount on the first quote and they’ll still have a substantial margin in that price. 

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I know, I'm going to leave it and see what happens just in case they lower the amount again, as I don't really know what prompted them to lower the price.

 

Cheers

 

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