The BCO claims office developments are facing increased costs and developments risks due to higher connection charges, caused by a lack of capacity on the distribution network.
However, the report claims regulations “arguably inapplicable to Central London” mean the distribution network operator (DNO) for Central London – UK Power Networks (UKPN) – is unable to invest in improving capacity.
To overcome this, the BCO recommends “promoting a special case” to Ofgem to allow UKPN to invest additional funds “ahead of need”.
However, the BCO – along with UKPN – highlight a new 33kV network as an example of where the DNO and developers have worked together to help meet the demand of very large electricity users inside of the current regulation structure.
UKPN told Utility Week: “We are not aware of new office developments being jeopardised by power capacity issues in London” and that it remains “one of the most reliable in the UK”.
UKPN added: “We are working collaboratively with our stakeholders, which include the City of London Corporation, Westminster City Council and the Greater London Authority, to ensure our future plans better meet the needs of London’s business community.”