Can DNOs offer capital installation cost discounts (Asset Value) for new developments?
Can DNOs offer capital installation cost discounts (Asset Value) for new developments?A:
No. To create and promote competition in the connections market Ofgem allow IDNOs to use future revenues from their networks to help subsidise the initial costs of new network projects. This “capital installation costs discount” or “Asset Adoption Value” can be very attractive to a company that is looking to develop a new electrical network and is used to help reduce the total capital cost of designing and building the power network. DNOs cannot discount in this way.See also: IDNO vs DNO