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A new business electricity connection is what you need when a business premises has no existing electricity supply at all. This is different from a meter install, which assumes you have a connection already.
Common scenarios: a new-build commercial unit, a converted property, a site that previously had supply but was disconnected, or a temporary supply for construction. All of them need a new connection from the local distribution network.
What’s involved in a new business electricity connection?
Three stages:
- Cable installed from the substation to your meter position. The Distribution Network Operator (DNO) for your region is responsible for this work, but a substantial portion can be done by an Independent Connection Provider (ICP) at much lower cost.
- An MPAN registered for the new supply point.
- A meter installed and commissioned by a Meter Operator (MOP).
Once all three are done, you can contract with a supplier to start receiving billable electricity.
Who is involved in a new business electricity connection?
- The DNO (Distribution Network Operator). 14 DNOs cover the UK, UK Power Networks, Western Power Distribution (now National Grid Electricity Distribution), Northern Powergrid, Electricity North West, ScottishPower Energy Networks, SSEN, and others. You don’t choose your DNO; it’s whichever one operates your region.
- Independent Connection Providers (ICPs). Third-party qualified contractors who can do the contestable work, sometimes cheaper than the DNO.
- The Meter Operator (MOP). Installs the meter once the connection is built.
- Your Supplier. Bills for the electricity once the MPAN is live. You choose your supplier at the end.
Contestable vs non-contestable work, where the value lives
This is the single most important thing to understand about a new electricity connection:
- Non-contestable work, only the DNO can do. Includes the final connection to the network, energising the supply, and any work on the live grid.
- Contestable work, anyone qualified can do. Includes the cable installation, trenching, civils, and the build of your service cable up to (but not including) the final connection.
The contestable portion is often 60% to 80% of the total cost. ICPs routinely quote 30% to 50% cheaper than DNOs for this work. For a site-specific cost DNO quote, an ICP might do the contestable portion for site-specific cost saving varies by site.
What drives the cost of a new business electricity connection?
| Site type | Typical total cost | Notes |
|---|---|---|
| Small commercial, low demand (under 70 kVA), urban | varies by site | Standard new shop/office connection |
| Medium commercial, urban (70 to 200 kVA) | varies by site | Light industrial, larger hospitality |
| Larger commercial (200 to 500 kVA) | varies by site+ | Substantial cable work needed |
| Higher-demand sites (above 500 kVA) | varies by site+ | Often requires substation upgrade |
| Rural connection, far from network | varies by site+ | Distance multiplies cost rapidly |
Indicative ranges only. These are not live quotes. Costs depend on demand, distance to the nearest available network capacity, ground conditions, traffic management, planning, wayleaves, and whether the network in your area has spare capacity or needs reinforcement.
How long does a new business electricity connection take?
| Stage | Duration |
|---|---|
| Connection enquiry submitted to DNO | Day 1 |
| Site survey / desktop study | Week 1–3 |
| DNO quote received | Week 4–8 |
| ICP quotes obtained (for contestable work) | Week 4–6 (in parallel) |
| Quotes accepted, install scheduled | Week 8–12 |
| Civils + cabling installed | Week 12–14 |
| Final DNO connection + energisation | Week 14–16 |
| Meter installed by MOP | Week 16–18 |
Total: 8 to 14 weeks for standard urban sites. Higher-demand and rural sites can run 4 to 12 months.
How can you speed up a new business electricity connection?
- Submit the connection enquiry early. As early as you can. 16 weeks ahead of “needed live” date is healthy.
- Have your demand calculation ready. A Maximum Demand calculation (kVA peak) signed off by your M&E consultant is the single biggest piece of info the DNO needs.
What catches people out on new electricity connections?
- Network capacity. If your local network is already heavily loaded, the DNO may need to reinforce a substation before your connection can be made. This adds months and can add tens of thousands.
- Three-phase vs single-phase. Most business premises need three-phase supply.
- Wayleaves. If the new cable has to cross third-party land, you’ll need wayleave agreements.
- Smart meter eligibility. Higher-demand sites (above the half-hourly threshold) get HH meters, not SMETS2.
How does Clearsight help with a new electricity connection?
We project-manage the full process, submitting the connection enquiry, getting the DNO quote, sourcing competing ICP quotes for contestable work, coordinating the install schedule with the MOP for the meter, and contracting the supply onto a competitive supplier once the MPAN is issued.
No upfront fees. We’re paid by the suppliers we recommend.
Get a quote for your new electricity connection in 60 seconds.
Related guides: Business electricity meter installation, DNO connections explained, Meter operators (MOPs), Business meter installation hub, Business electricity pillar.
What are the five stages of a new business electricity connection?
A new business electricity connection moves through five stages. The first two are the ones most businesses get stuck on, so it pays to know what each one involves before you start.
1. Pre-application enquiry
Optional but recommended at the feasibility stage. You send the DNO a postcode, estimated maximum demand in kVA, and your timing. They come back with an indicative cost and timeline without you committing to anything. This is the cheapest way to flag whether your site needs upstream reinforcement (which can change the price meaningfully).
2. Formal application
You submit the full application: site address, supply type (single or three-phase), maximum demand in kVA, load profile, and any specific timing constraints. Ofgem regulates the turnaround window the DNO has to come back with a quote.
3. Quote and acceptance
The DNO issues a quote covering the connection design, the network charge, and the proposed timeline. The quote is valid for a defined period. If you accept, the DNO schedules the design and works.
4. Civils and energisation
The DNO runs the cable from the existing network to your premises, installs the cut-out at your meter position, and energises the supply. This is the longest physical stage, especially if any of the civils work is non-contestable.
5. Meter install and supplier contract
The meter operator installs the meter. The MPAN is issued. You appoint a supplier and the supply goes live on a billable contract.
Which DNO covers your site?
Electricity distribution is split across 14 DNO licence areas covering the UK. UK Power Networks covers London, the South East, and the East of England. National Grid Electricity Distribution covers the Midlands, South West, and South Wales. Northern Powergrid covers Yorkshire and the North East. Electricity North West covers the North West. SP Energy Networks covers Central and Southern Scotland plus Merseyside, Cheshire and North Wales. SSEN covers the North of Scotland and Southern England. Your postcode tells you which DNO you are dealing with.
What commonly delays a new business electricity connection?
Most delays are avoidable if they are flagged early. The common ones we see are demand miscalculation (under-stating kVA leads to a later upgrade), missing wayleaves (the DNO will not start if the cable route crosses land you do not own), restricted site access (a constrained urban site or a locked yard can add weeks), sequencing errors (the meter cannot go in until the connection is energised), and network reinforcement (if your demand triggers an upstream upgrade, costs and lead times step up sharply).
What do you need ready before you apply for a new electricity connection?
A first call with us moves faster if you bring the basics: site postcode, current or expected demand in kW or kVA, what the site does today and what it will do after the install, planned move-in or commissioning date, and whether single-phase is enough or you need three-phase. If you do not have all of this, we can fill in the gaps once we have the postcode.
What happens after the meter is live?
Once the MPAN is issued and the meter is fitted, you can put the supply onto a competitive contract. See our guides to business electricity and switching business electricity. For sites above 100 kW peak demand, half-hourly metering is mandatory, see our half-hourly meter section. For the full pillar covering all meter install and connection scenarios, see our business meter installation and new connections hub.
If you also need a brand-new gas supply at the site, see our new business gas connection guide. If your demand will exceed 100 kW peak, you will also be in the half-hourly metering bracket, see our half-hourly electricity meter guide. For the upcoming settlement reform that affects every smart-metered site, see the MHHS guide for UK businesses.