Electricity connection cost soars for new housing

Bodies representing house builders say the rise will add to housing supply difficulties

NIE Networks has been allowed to more than double what it charges to connect new housing developments to the electricity grid.

The price increase, which will initially see the fee per dwelling increase from £1,094 to £1,974, has been approved by the Northern Ireland Utility Regulator.

The price will increase again in April to at least £2,445.

Bodies representing house builders have said it will add to housing supply difficulties.

Mark Spence says the move has not been given "full and proper consideration"

Mark Spence, chief executive of the Construction Employers Federation said the increase had not been given "full and proper consideration".

NIE Networks owns the network of lines, poles and substations that takes electricity from power stations to homes and businesses.

It said the price increase was necessary because construction price inflation means the current charge no longer reflects the actual cost of the work.

A spokesperson added: "This charge applies only to housing developments of 12 properties or more and will not impact single house connections.

"In Northern Ireland there are a number of providers that can connect to the electricity network enabling developers to have a choice of provider."

'Beyond the level of inflation'

As NIE Networks is a monopoly, the price increase had to be approved by the regulator.

The regulator was convinced by NIE’s evidence of the increased cost of the connection work.

A spokesperson said: “In 2022, NIE Networks provided evidence to the Utility Regulator and the Construction Employers Federation to show that the costs of these works had increased beyond the level of inflation.

"As a consequence, there was a significant shortfall between the actual costs incurred by NIE Networks and the Standard Connection Charge. This meant that the additional cost of the site works were being paid for by all electricity consumers.

"In November 2024, NIE Networks submitted an updated Statement of Charges, which includes a phased approach to increasing the charge to a fair and cost-reflective level, and we have approved this.”