NESO Gate 2 applications: what happens if an applicant is dissatisfied with NESO’s decision?

With us being well through the NESO distribution Gate 2 window and with applications to NESO commencing, we know applicants are knee deep in preparation and submission of applications into the 'Gate 2 to Whole Queue' process.

National Grid Electricity Distribution (NGED) reported on 1 July that they have only received 16% of the expected applications with just half the window remaining. Of those applications, NGED have reported that a large majority of these were 'failing on minor technicalities' and would not get a Gate 2 offer on the original application.  

DNOs and NESO are pushing for applications to be submitted as soon as possible to allow for feedback to be given. NGED have confirmed that if submissions are made in the first two weeks of the application process applicants will be given two working days to remedy errors identified in NESO’s initial checks, in the last week this will be reduced to one working day. With the new methodology lacking full clarity, a significantly high volume of applications expected and core infrastructure/IT issues as a team we anticipate this will have impacts on the outcomes of applications and any possible challenges that could be raised on those outcomes.  

One question clients are asking us is what happens when an applicant applies to NESO for a grid connection and is dissatisfied with NESO’s decision, and wishes to challenge that decision? What is the route to challenge that decision?

Ofgem, as the energy regulator, has a statutory role in resolving issues related to the grid.

In relation to the upcoming implementation of the reformed connections space, Ofgem is currently preparing guidance for potential determinations from industry participants regarding NESO decisions in relation to connection offer realignment (Gate 1 and Gate 2). The guidance will also explain the procedure for lodging any complaint to Ofgem regarding NESO’s decisions, including the minimum information required for them to investigate.

Before any complaint is made to Ofgem, they will expect all reasonable alternative dispute resolution routes available to have been exhausted. For example, the formal dispute process of the respective DNOs/TOs.

Ofgem will be consulting on the draft guidance later in the summer. Watch this space for detailed analysis of the guidance consultation and the impact on you.

For further information or advice, please contact our energy and resource management team.