How do ICPs compare to traditional DNOs in terms of speed and cost?

Independent Connection Providers (ICPs) generally compare favourably to traditional Distribution Network Operators (DNOs) in terms of speed and cost. Here are some key differences:

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Speed:

• ICPs are often faster in providing quotations and completing projects compared to DNOs. DNOs can take months to provide a quotation, whereas ICPs can offer faster delivery and increased flexibility around project timelines.
• This faster delivery can prevent unwanted costs associated with interim power generators or delays in the construction phase, ultimately reducing the overall cost of the installation.

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Cost:

• ICPs can offer competitive pricing compared to DNOs. They may be cheaper due to their flexibility and ability to manage projects from start to finish, reducing the need for additional services and paperwork.
• ICPs can also provide a more dedicated and personalized service, which can lead to cost savings through efficient project management and reduced administrative burdens.

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Asset Value Payments:

When an ICP constructs a connection, it can be adopted by either a DNO or an IDNO. This adoption can result in an upfront "Asset Value" payment, which can be a significant cost savings for the developer.

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Flexibility:

ICPs can manage both contestable and non-contestable works, allowing them to cover a broader range of tasks and provide a more comprehensive service compared to DNOs.

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Regulation:

Both ICPs and DNOs are regulated by Ofgem to ensure safety, performance, and service standards. However, ICPs are more flexible in their geographic scope, as they are not limited to specific regions like DNOs.