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Independent Connection Providers: Benefits and Risks for Businesses
For many years, businesses had no option but to arrange new electricity connections or upgrades directly with their local Distribution Network Operator (DNO). With no competition, this process was often slow, inflexible and costly.
Today, more than 450 Independent Connection Providers (ICPs) are accredited to design and build new connections, offering businesses a faster and more competitive alternative. This guide explains how ICPs work and helps you decide whether using one is the right choice for your business. Here’s what we cover:
- What is an Independent Connection Provider (ICP)?
- What services do Independent Connection Providers offer?
- Independent Connection Providers regulation
- The benefits of using an Independent Connection Provider
- Costs of using an Independent Connection Provider
What is an Independent Connection Provider (ICP)?
An Independent Connection Provider is an accredited company authorised to design and build new business electricity connections, offering an alternative to using the local Distribution Network Operator (DNO).
ICPs carry out the engineering, civil works, cabling, substation installation and testing required to deliver a new or upgraded supply, while the DNO or an Independent Distribution Network Operator (IDNO) adopts and ultimately owns the completed assets.
What services do Independent Connection Providers offer?
Independent Connection Providers offer end-to-end services to help UK businesses obtain new or upgraded electricity connections.
Here’s a practical list of services an ICP can provide.
New electricity connections
ICPs can design and build new electricity connections for commercial properties. They handle both preparing designs and performing the necessary construction and installation work for new cables, transformers and substations.
Find out more in our full guide to arranging a new business electricity connection.
Upgrading an existing connection
An increasingly popular service offered by ICPs is upgrading the capacity of existing connections to support the installation of EV charging stations.
An ICP can upgrade the Maximum Import Capacity of a connection by installing new cables and switchgear.
An ICP can also upgrade the supply from single phase to a three-phase 400V supply to support more energy-intensive operations.
Connections for renewables
ICPs can design and build the electrical infrastructure to connect new solar farms, battery storage facilities and wind farms to the local distribution network.
ICPs are not accredited to work on connecting large-scale generators such as offshore wind farms or nuclear power stations to the high-voltage national grid.
Independent Connection Providers regulation
In the early 2000s, the energy regulator Ofgem opened up competition in the electricity infrastructure market by allowing third parties to perform specific connection tasks on the electricity distribution grid.
To minimise the risks of letting third parties work on the grid, Ofgem introduced the following regulations:
Competition in Connections policy
The Competition in Connections (CiC) policy is an Ofgem initiative aimed at introducing competition to the electricity connections market.
Prior to the CiC, only regional distribution network operators could design and build new connections on the electricity distribution grid. Since developers had only a single choice of connection provider, quotes offered were non-competitive, and waiting times were long.
The Competition in Connections policy introduced two accredited roles:
- Independent Distribution Network Operators – Private companies that own and operate small, independent local distribution networks connecting new developments.
- Independent Connection Providers – Engineering and construction specialists that can design new connections, lay cables and install electrical switches and transformers.
Contestable works
Ofgem’s competition initiative uses the term ‘contestable work’ to describe parts of an electricity connection that do not have to be carried out by the DNO and can instead be completed by an accredited ICP.
Ofgem defines contestable works as:
Any element of a new or upgraded connection where competition can be safely introduced, and which can be designed, constructed, installed or commissioned by an accredited ICP rather than the local DNO.
National Electricity Registration Scheme
The National Electricity Registration Scheme (NERS) is the UK accreditation system that ensures Independent Connection Providers are competent to design and install electricity network assets safely and to the required engineering standards.
NERS works on behalf of distribution network operators and provides assurance that ICPs working on the grid will:
- Follow technical standards
- Build safe and reliable assets
- Work competently around high-voltage infrastructure
- Provide acceptable documentation and quality control
ICP accreditation is assessed separately for specific activities that an individual ICP may carry out.
For example, an ICP may be accredited only for the design of a low-voltage system and not a 33kV system.
ENA G81
ENA G81 is a suite of industry-standard engineering documents published by the Energy Networks Association. It provides a common national framework for the design, construction and installation of electricity distribution network assets.
The ENA G81 framework ensures assets built by ICPs meet national safety and quality standards.
In each region, the distribution network operator provides appendices to the G81 framework that set out network-specific materials, labelling, and drawing conventions.
Statutory health and safety regulations
The following relevant health and safety regulations also apply to Independent Connection Providers and their staff:
- Electricity at Work Regulations 1989 – The main safety framework for working with electrical systems.
- Construction (Design and Management) Regulations 2015 – Regulations that apply to all construction work in the UK.
- Management of Health and Safety at Work Regulations 1999 – Regulations requiring risk assessments and safety management systems.
The Independent Connection Provider connection process
Independent Connection Providers perform three distinct roles: creating electrical designs, implementing the work and then transferring ownership of their completed assets to a network operator.
This section explains each step of the ICP process.
Electrical design
ICPs are accredited to carry out detailed low and high-voltage electrical design, including cable sizing, fault level analysis, earthing, protection studies and substation layouts.
The design work will take into account the required electrical demand for each connection and must comply with the distribution network operator’s standards to which the connection will be attached.
Electrical installation
Once designed, the ICP is accredited to carry out installation and construction work in accordance with its designs. Here’s what is typically involved:
- Cable installation – Installing low and high-voltage underground cables.
- Jointing – Connecting cables to new and existing equipment.
- Substation installation – Installing switchgear, transformers and other substation equipment.
- Inspection and testing – Performing electrical testing and providing certification.
Asset adoption
Once an ICP designs and builds new electrical infrastructure, it is handed over to the local DNO or an IDNO, which then becomes responsible for owning, operating and maintaining it.
Before construction, electrical designs produced by ICPs are reviewed by the adopting network operator to ensure compliance with G81 regulations.
Once energised, the ICP produces an adoption pack for the network operator that includes as-built drawings, cable routing information and test certificates.
The benefits of using an Independent Connection Provider
If your business requires a new or upgraded connection to the grid, you should consider engaging an Independent Connection Provider instead of requesting the work from your regional DNO.
Here are the three key reasons businesses typically choose to engage an ICP.
Faster delivery times
DNOs often have long lead times due to high workloads, limited engineering resources and regulated processes.
In contrast, a local ICP may have more flexibility and the ability to mobilise staff and subcontractors quickly, helping to reduce project lead times significantly.
Competitive pricing
There are multiple competing ICPs to choose from in most regions of Britain, meaning that tendering your connection project can lead to substantial savings.
Find out more in our section on the costs of using an Independent Connection Provider.
Flexible project management
A DNO typically operates connections for millions of customers and has a large pipeline of work. This means their scheduling of new connections is likely to be inflexible to the requirements of your business.
In contrast, ICPs typically deliver a more flexible and customer-focused service.
How to choose the right Independent Connection Provider
There are currently over 450 accredited Independent Connection Providers. Choosing the right one is important to ensure your electricity connection is delivered safely, efficiently and on time.
Here’s how we recommend finding the right ICP for your business.
Check NERS accreditation register for ICPs in your area
Search the NERS-accredited Independent Connection Provider register to find ICPs that operate in your region and are accredited to work on your type of commercial property (small business/commercial/industrial).
Choosing an ICP in your region means they are more likely to be familiar with the G81 criteria for connecting to your DNO.
Relevant experience in your project
Choose an ICP that regularly delivers projects similar to yours, for example:
- Commercial property connections
- Industrial sites
- Warehouse, logistics and retail parks
- Renewable generation (solar, wind, battery storage)
- EV charging hubs
A provider with the wrong background may struggle with design approval, DNO liaison or technical standards.
Compare quotations
We recommend requesting multiple quotes from ICPs in your region to ensure you choose an ICP with competitive pricing.
Ask prospective ICPs for:
- A clear breakdown of design, civils, cabling, installation and final connection costs
- Identification of DNO non-contestable charges
- Clarity on what is included and what is excluded
- Firm project milestones and payment triggers
Multi-service ICPs
Multi-service ICPs are firms that combine accredited network-connection capabilities with business energy supply services.
Some of the best business energy suppliers, like British Gas and E.ON are also accredited ICPs.
ICPs that are able to supply as well as build your connection can offer a more integrated service, streamline communication, and provide clearer visibility of long-term business energy costs.
Costs of using an Independent Connection Provider
Using an Independent Connection Provider can often reduce the overall cost of securing a new or upgraded electricity connection, compared with relying solely on the local distribution network operator.
Understanding the costs of using an Independent Connection Provider is important, as connection charges can sit alongside ongoing expenses such as business electricity prices when planning your overall energy budget.
Here’s how the cost structure works when using an Independent Connection Provider.
Design costs
ICPs charge for producing G81-compliant electrical designs required for your connection. The cost of these designs depends on the complexity of the site, but is usually lower and more transparent compared with DNO engineering fees.
Construction and installation costs
Construction and installation costs are usually the most expensive part of the project and depend on:
- Distance to the Point of Connection (PoC) – The further your site is from the existing electricity network, the more trenching, ducting and reinstatement work will be required.
- Substation requirements – Commercial properties with a connection capacity exceeding 500 kVA usually require a dedicated substation, substantially increasing costs.
- Ground conditions – The difficulty and cost of the civil engineering work required to lay new cables depend on the type of surface at your property.
DNO non-contestable charges
When ICPs add new connections to the electricity grid, there are certain roles that must be carried out by the local distribution network operator.
These include making the final connection and installing any network reinforcement that may be required to support the new connection.
DNO non-contestable charges are the same regardless of whether you use a DNO or an ICP.
Capitalised Asset Value (CAV) payments
When high-capacity connections are installed by an ICP, they will typically choose an independent distribution network operator (IDNO) to adopt the newly installed electrical assets. Unlike DNOs, an IDNO typically offers a Capitalised Asset Value (CAV) payment, which contributes to the cost of installation.
IDNOs earn ongoing DUoS charges for operating the adopted electrical assets, so they are prepared to reimburse ICPs for part of the construction costs. Using an IDNO to adopt ICP-built assets can significantly reduce the cost of a new connection.
Risks when using an Independent Connection Provider
An Independent Connection Provider is an accredited role that is carefully regulated; however, it is important to be aware of the following risks to help you choose a reputable provider.
- Design rejection – Electricity network operators must approve the design and may reject work that does not meet DNO-specific standards. Using an inexperienced ICP may result in rework, which increases costs and delays energisation.
- Documentation issues – Even if assets are built correctly, the DNO or IDNO may delay adoption if documents or test results are not up to standard, which can delay energisation.
- Insolvency – If an ICP becomes insolvent or withdraws mid-project, you may be left with partially completed infrastructure. This can increase the time and cost of your connection work.
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