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How to arrange a new business electricity connection
Electricity supplies to commercial properties are becoming increasingly important as British businesses transition to heat pumps and EV charging.
This guide explains each step required when arranging a new business electricity connection.
Steps to arrange a new business electricity connection
- Step 1: Determine electricity supply specifications
- Step 2: Engage a business utilities specialist
- Step 3: Get permission from the local DNO
- Step 4: Planning for the connection
- Step 5: Appointing a business electricity supplier
- Step 6: Connection work takes place
The time and costs of the new connection process depend on the capacity of the connection, and whether any grid reinforcement work is required. Let’s start with step 1.
Determine electricity supply specifications
The first step of the business electricity connection process is understanding your property’s electricity requirements. Here are the details you need at the start.
- Site plan – A detailed site plan showing the layout, buildings, and intended points of connection.
- Annual expected business energy consumption – The total amount of electricity, in kWh, that you expect to consume each year. We recommend considering any high-consumption devices you plan to use, such as AC units, EV chargers, and heat pumps.
- Maximum demand (in kWh) – The maximum power you expect to consume in any 30-minute period. This will determine the required capacity of your connection. See our article on maximum demand for more information.
- Single or three-phase supply – Whether any energy-intensive equipment requires a three-phase power supply. Learn more in our guide to single versus three-phase power.
These details will be used during the connection process to determine the type of business electricity connection required at your commercial property.
Engage a business utilities specialist
We recommend engaging a business utilities specialist to manage the process of arranging your new business electricity connection. A utilities specialist will handle the following aspects of the process:
- Planning and designing – Designing the optimal connection based on the property layout and supply specification.
- Single point of contact – Acting as a single point of contact for all the organisations involved in arranging a new business electricity connection.
- Coordinating with other utilities – Coordinating groundwork with other utilities, including commercial gas and business water connections.
- Managing legal permissions – Managing the process of obtaining wayleaves, easements, and the necessary street works licences.
Here’s a list of trusted business electricity connection specialists:
- Crown Energy – Specialists in connecting commercial properties with gas, electricity, and water in a single service.
- nPower Business – Promotes itself as the fastest way to get a business electricity connection.
- British Gas – Offers a dedicated project manager to support each electricity connection. Read our guide to British Gas Business Energy for more details.
Get permission from the local DNO
To connect your business to the local electricity grid, you will need to obtain permission from your distribution network operator (DNO), who operates the electrical grid in your area.
Your DNO will assess your technical requirements against the capacity of the local grid to ensure it can accommodate the proposed electricity connection.
After assessment, the DNO will issue a formal connection offer that defines:
- Connection capacity (kVA)
- Maximum Import Capacity
- Maximum Export Capacity
- Point of connection
- Reinforcement work and costs (if required)
- Connection charges
Upon approving the DNO connection offer, the DNO will allocate a Meter Point Administration Number (MPAN) for your proposed business electricity connection.
Timescale for permission from the DNO
Here are the typical timescales for receiving a connection offer from a DNO:
- Small LV connections: 2–6 weeks
- High-capacity LV connections: 6–12 weeks
- 11 kV HV connections: 12–20+ weeks
Where reinforcement work is required, it may take six months or more for your DNO to carry out the work once the connection offer has been accepted.
Planning for the connection
Your business utilities specialist will develop a detailed plan for your business electricity connection, including:
- Conducting a design and utility risk assessment that meets the required technical standards
- Developing a coherent strategy for all your utility connections
- Negotiating any issues related to leases, wayleaves, and easements
- Securing services from local independent connection providers with the necessary expertise to work on your property
- Scheduling and coordinating the day on which the connection will be physically installed
Appointing a business electricity supplier
You’ll need to appoint a licensed business energy supplier and sign up for a business energy contract for your new connection.
Our business energy experts have helped thousands of companies find the cheapest electricity tariffs. Compare business electricity suppliers today to find a competitive tariff for your new electricity connection.
Once the connection has been energised, your new supplier will start issuing business electricity bills based on your agreed business electricity rates.
Connection work takes place
Either your DNO or an independent connection provider will complete the physical work to connect your property to the electricity grid. This involves:
- Carrying out the preparatory groundwork required to lay the cables for the connection
- Installing any additional cables or transformers needed to support the new connection
- A certified electrician completing the internal wiring
- New business electricity meter installation
- Connection testing to ensure the supply is working effectively and safely
Business electricity connection timescale
The civil works and cable installation required for the new connection typically take around two weeks for a simple low-voltage installation. For higher-capacity connections, where the construction of a new substation is required, the work can take several months to complete.
Types of business electricity connections
The section below explains the three core technical characteristics used to describe different types of business electricity connections.
Voltage (V)
Voltage is the electrical pressure that pushes current through a circuit.
The table below shows the typical voltage levels used in new business electricity connections and the impact on the required work.
| Voltage Level | Typical Value | Types of Business | Impact on Connection |
|---|---|---|---|
| Single-phase Low Voltage (LV) | 230 V | Very small commercial sites | Simple, low-capacity connections |
| Three-phase Low Voltage (LV) | 400 V | Most SMEs, shops, and offices | Higher-capacity standard connections |
| High Voltage (HV) | 11 kV | Larger industrial sites, factories, cold storage, large EV hubs | Requires an on-site substation and specialist equipment |
| Extra High Voltage (EHV) | 33 kV, 66 kV, 132 kV | Very large industrial sites, data centres | Long lead times and major DNO design processes |
Amperage (A)
Amperage (current) is the rate at which electricity flows through a connection. A higher-amperage connection can deliver more power.
Low-voltage connections typically deliver between 60 and 100 A per phase. Higher-amperage connections require specialist metering and additional equipment.
Capacity (kVA)
kVA (kilovolt-amperes) is a measure of the maximum electrical capacity a business can draw from its supply. It combines both voltage and amperage to provide an overall measure of a connection’s capacity.
The table below shows the typical capacities of different types of business electricity connections:
| Supply Type | kVA / MVA Range | Typical Customer |
|---|---|---|
| Single-phase 80 A | ~18 kVA | Small shop, small office |
| Three-phase 60 A | ~41 kVA | Small restaurant, small workshop |
| Three-phase 100 A | ~69 kVA | Medium-sized sites, HVAC load |
| High-capacity LV | 70–800 kVA | Large restaurants, hotels, EV charging |
| HV supply | 500 kVA – several MVA | Industrial sites, logistics, data centres |
| EHV supply | 5 MVA – 100+ MVA | Very large commercial users |
As part of the new connection process, you’ll agree on the Maximum Import Capacity and Maximum Export Capacity with the regional DNO. This is the maximum power your site can import from, and export to the grid once the connection is operational. These values must be less than or equal to the connection capacity.
The organisations involved in a new business electricity connection
In our process above, we’ve recommended using a utilities specialist to manage and act as a single point of contact for the following organisations that are typically involved in a new business electricity connection:
Independent Connection Provider
An Independent Connection Provider (ICP) is a specialist accredited to design and build electricity connections. In a new business electricity connection, they can design the on-site connection, lay new cables, and install electrical network equipment such as substations.
Distribution Network Operator
The Distribution Network Operator (DNO) owns and operates the electricity grid in your region.
For all new business electricity connections in their region, a DNO will always assess whether the grid can support the proposed connection and will provide a formal connection offer confirming approval.
There are two additional optional roles the DNO may take on for a new connection:
- Designing and building the connection (instead of an ICP)
- Operating the cables and substations installed (instead of an IDNO)
Independent Distribution Network Operator
An Independent Distribution Network Operator (IDNO) is a company licensed to own and operate smaller electrical networks.
Once a new electricity connection is energised, an IDNO can adopt and operate the new connection. They will maintain the new cables, substations, and other network equipment.
IDNOs can offer incentive payments for adopting larger-capacity connections (since they earn DUoS charges for operating the new connection), which can reduce overall connection costs.
For more information, read our full guide to IDNOs.
Energy supplier
A licensed energy supplier is the company that will provide an electricity supply to your property once the new connection is live.
You cannot receive a live, energised connection without first appointing a business energy supplier. For higher-capacity new connections, your supplier will typically appoint a meter operator to install and maintain your half-hourly energy meter.
Business electricity connection costs
The cost of a typical small business electricity connection with up to 69 kVA capacity is £6,000. This overall cost is made up of the two major components always required for a new connection:
- DNO connection charge – The fee for checking grid capacity and making the final connection when energising the supply.
- On-site installation – The cost of using an Independent Connection Provider to install the new cables, transformers, and other equipment required for the connection.
This cost will rise significantly where any of the following apply:
- Higher-capacity connection – Where the installation of substations and other specialist equipment is required on site.
- Network reinforcement – Where the local DNO needs to carry out upgrade work to support the new connection.
- Road closures – Where civil work is required on a public road or pavement, resulting in fees payable to the local highway authority.
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