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Changes proposed for how energy suppliers connect to grid - 27/08/2009

The government is looking to compare energy plans in relation to new ways in which power plants connect to the grid, with several alternatives being considered.

At the moment, grid access is granted on a first come, first served basis, regardless of whether or not a new plant is actually ready to begin supplying energy.

This system does not favour renewable energy projects, which must join a building backlog despite often being ready to deliver electricity more quickly than rival power plants burning fossil fuels.

New plans being considered involve sharing all connection costs across the network, targeting new power plants with some of the costs, or varying the amounts paid by different energy generators.

Ed Miliband, the UK energy and climate change minister, said: "Access to the electricity grid has been one of the key barriers to the generation of renewable energy in this country. We need these new projects to get hooked up to the grid as soon as they are ready."

Consumers could decide to switch gas and electricity companies in pursuit of cheaper rates.

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