Upfront connection costs can be prohibitive and prevent the development of energy projects. This results in a “chicken and egg” situation whereby developers wait for other developers to commit to the funding of connection costs.

Upfront connection costs can be prohibitive and prevent the development of energy projects. This results in a “chicken and egg” situation whereby developers wait for other developers to commit to the funding of connection costs. Type: conclusion | Number: 9 | Paragraph: 72 | Response status: under_consideration Government response: As the Committee notes, from April 2023, Ofgem, has decided to socialise a further proportion of network reinforcement costs for distribution network connection customers. This will reduce the upfront cost. Part of the rationale for this change was to address the ‘chicken and egg’ issue referred to