UFU welcomes ‘fairer’ grid connection costs for farm families
The Ulster Farmers’ Union (UFU) has welcomed the introduction of "more affordable" grid connection charging in Northern Ireland.
The new arrangements were introduced by Economy Minister Dr. Caoimhe Archibald today (Thursday, July 1).
The union said that the new arrangements will deliver “fairer, more affordable electricity grid connections for rural communities” by spreading grid reinforcement costs across all consumers.
Commenting on the announcement, UFU deputy president Glenn Cuddy said: “A fairer distribution of electricity grid connection costs is something the UFU have been lobbying the Department for Economy on for quite some time in a bid to help strengthen the rural economy and allow farmers to invest further in their farm businesses.
“This new arrangement will partially remove existing financial disadvantages currently faced by farmers and rural businesses who wish to increase their electricity capacity, making electricity grid connections for both import and export more accessible.
“It is particularly beneficial to farmers seeking to upgrade to three phase power, strengthen the electricity infrastructure supplying their farms, or invest in small-scale renewable energy projects.”
Three-phase power is the standard method for generating and distributing alternating current (AC) electricity.
It uses three overlapping electrical currents transmitted over three separate wires, allowing for a continuous, steady flow of electricity that is efficient for heavy commercial and industrial loads
Cost cap
The new measures will be subject to a cost cap, which has been set at £1,000/kVA for demand/import, while the generation/export cap is £200/kW.
The deputy president called for this "high-cost cap" to be kept under review during the early stages of the new arrangements.
"It is important that the high-cost cap, particularly for export, is monitored in these early stages of the new arrangements,” Cuddy said.
“We want this to have a real impact for farmers who wish to export and cannot due to the cost of a grid connection, but there is a risk that the high-cost cap is set too low and will further prevent otherwise viable farm-scale projects.”
Cuddy said that the UFU will continue to monitor the new arrangements, including the impact of the current cap, the application process, and its implementation to ensure it genuinely enhances business opportunities for farmers in rural areas and supports overall rural growth.
