From 1 October 2012, the general customer base will no longer pay towards the cost of new connections to the electricity distribution system. This follows a decision by the Utility Regulator on 5 April 2012, approving the removal of the 40% connection subsidy for domestic and small business customers who wish to make a new connection to the Northern Ireland electricity distribution system.
The decision was made following a consultation in November 2010 on the electricity connection policy to the Northern Ireland distribution system and the publication in May 2011 of proposals in the next steps paper - electricity connection policy for the Northern Ireland distribution system .
Previously, the 40% subsidy on connection costs was paid for by the majority of customers through their electricity bills. This policy was put in place in the early 1970s to encourage rural electrification and the expansion of the electricity network. The removal of this subsidy means that now, only those customers who want to make a new connection to the electricity network will pay the full amount.
On 24 September 2012 the Utility Regulator approved NIE’s statement of charges for connection to the Northern Ireland electricity distribution system, which is effective from today. The statement of charges is available from NIE’s website.
NIE have produced a factsheet on the removal of the 40% subsidy which can also be found on their website.