3.31 ENA Connection Milestones

Introduction and Scope:

In 2021, the Open Networks Project published the ENA Open Network Project Queue Milestones User Guide to establish more consistent application of Queue Milestones across DNOs (see section 3.30). UK Power Networks applied this policy to large generation and demand projects.

In 2023, Ofgem and DESNZ published a Connections Action Plan that set out key areas of action to reduce connection timescales including a requirement for DNOs to review and improve the application of Milestones. Following completion of this action, the 2021 document has been updated to reflect the requirements of the Connections Action Plan by:

1. Defining the process of Connection Milestones for distribution generation connections in scope of the NESO `Gated` process,
2. Replacing the previous Tolerance Process with a process more closely aligned with NESO's Remedy Notice, and
3. Setting out a minimum threshold for the application of Connection Milestones to demand connections.

The objective of Milestone Management is to free up capacity by removing slow moving/stalled projects from the connection queue. UK Power Networks will establish Milestones (contractual commitments) when a connection offer is accepted and monitor progress against these Milestones. The revised industry document is published here and updated Milestones will be included in Connection Offers where the application date is on or after 01st October 2025 for:

• generation projects at or above 1MW, and 
• demand projects at or above 5MVA

UK Power Networks will periodically review the progress of projects against the Milestones and where appropriate may terminate any project that cannot evidence suitable progression. UK Power Networks will take into account any issues outside of the customer's direct control that have delayed or prevented achievement of the Milestones, and consider termination of projects as a last resort.

The Milestones and Timescales

Connection Milestones form the basis of Milestone Management and are included to in-scope contracts (quotations) which, if accepted, enables UK Power Networks to monitor the progress of customers to meet their connection dates and utilise the capacity they have applied for. A summary of the Milestones and timescales is shown below. 

 

Milestone Description	Timescale by which the Milestone completion must be evidenced.
1: Initiated statutory consents including Planning Permission. You have initiated statutory consents including Planning Permission for the development of your Site.	Within 2 months of quote acceptance
2: Secured statutory consents including Planning Permission. You have secured statutory consents including Planning Permission for the development of Your Site.	Within 12 months of quote acceptance
3: Land Rights. You have obtained the necessary land rights for the development of Your Site.	Within 2 months of quote acceptance
4: NESO Interface. Where a NESO Assessment of your connection is required, you will need to complete all of your obligations: For Generation connections where the Gated process applies and you are offered a Gate 2 connection, you will need to agree any variation. For Demand connections you will need to agree to any NESO Modification Conditions, including placing any required securities.	Generation: within 24 months Demand: within 12 months
5: Contestable Design Works Submission. If applicable, You have submitted a compliant design for the contestable design works.	Within 6 months of planning permission being secured
6: Provision and agreement of Construction Plan. You have provided an agreeable Construction Plan (and/or ICP programme of works) demonstrating how You will achieve the agreed connection date.	Within 6 months of planning permission being secured
7: Project Commitment. You must demonstrate that the project has the necessary Project Commitment / backing which is necessary for it to proceed.	As per Construction Plan
8: Project Construction. You must commence and complete the construction of your Works in line with the Construction Plan including any interim construction milestones.	As per Construction Plan

* the timescales noted apply if your Connection Date is within 5 years. If your connection date is more than 5 years, longer timescales are offered.

** If Milestone 4 applies (NESO Interface) no other milestones apply until you complete any requirements following the NESO Assessment. All other Milestones are set from the date Milestone 4 is concluded.

Evidence

Customers are required to provide timely evidence of their progression towards meeting the milestones. The table below summarises the evidence that UK Power Networks requires and further details can be found in the 2025 Milestone Management User Guide.  

 

Milestone Description	Evidence Required
1: Initiated statutory consents including Planning Permission	Planning Application reference number, viewable on LPA website. Customers may supply copies of planning approval documentation.
2: Secured statutory consents including Planning Permission	Applicant to confirm that planning consent has been secured with relevant planning notice reference, and the approved Planning Notice / status is viewable on LPA website.
3: Necessary Land Rights	The Customer will provide documentation to demonstrate that, with respect to the land on which the connection or substation is situated, it: is the owner or occupier, or current leaseholder of that land; or  has an option to purchase or to lease the land, or  has entered into an exclusivity agreement in relation to the land (note: only applicable where there is no NESO Assessment required).
4: NESO Interface	If applicable: Generation: Agreement in writing to the outcome of the NESO TEA process such that the NESO GATE 2 Offer has been or can be accepted within its validity period.  Demand: Agreement in writing to the outcome of the NESO TEA process
5: Contestable Design Works Submission	Customers have submitted contestable design submission. This will be the full design unless the DNO agrees to accept partial design submissions reflected on the M6 Construction M6, in which case this is the first submitted design.
6: Provision and agreement of Construction Plan	Customer's and/or ICP programme of works that demonstrates when project construction will commence and complete and how the project will be ready for the connection date. The programme may include interim construction milestones to demonstrate progress towards construction completion. (Including partial design submissions). Additional evidence may be required to demonstrate sufficient project progression if the construction start date is more than 12 months after agreement of the construction plan.
7: Project Commitment	Where the DNO is not completing contestable works: Binding contract for the supply and installation of the main plant equipment including, for example, substations or generation equipment.  Where the DNO is completing contestable works: Full or staged payment made to the DNO totalling at least 50% of the overall payment due to the DNO.  Alternatively, and where applicable, these are other acceptable forms of financial commitment: the Customer has secured a suitable Government Contract such as CfD or CM; or  Board paper evidencing the Final Investment Decision (FID); or  Subsidy award.
8: Commence and complete the construction of Customer Works	Commencement of substantive works at the customer's project site. Additionally, the customer must maintain clear progress as per the construction plan agreed with the Network Company by achieving any additional interim target dates, up to and including the completion of all customer works

  

Milestone Remedy Notice Period

The Milestone Management process includes a Remedy Notice Period to allow customers to manage reasonable delays without the risk of immediately terminating their quote if they fail to meet an agreed milestone. Where a delay to a project has impacted the Milestone date, UK Power Networks will allow the Customer some additional time to rectify the issue, the Milestone Remedy Notice Period. 

If the Customer has not provided to the DNO the required evidence that a Milestone has been met by its Timescale date, or where the evidence provided is considered by the DNO to be insufficient UK Power Networks will notify you and commence the termination process as follows: 

1. Issue a Milestone Remedy Period Notice notifying you that the project is classed as "Eligible for Termination" and that you must within the Milestone Remedy Notice Period (60 calendar days) provide evidence the Milestone is met.
2. If the Milestone has not been met by the end of the Milestone Remedy Notice Period, then UK Power Networks will:
• for Pre-Construction Milestones (Milestones 1 to 4 and Milestone 6), give notice to the Customer of its intention to terminate the agreement, or 
• for Construction Milestones (Milestones 5, 7 and 8), consider whether it is appropriate to exercise its right to terminate as provided for in the agreement or may agree revised Milestone dates. 

Please notify UK Power Networks as soon as possible if you experience a delay outside of your control (see below) as UK Power Networks may, at its discretion, agree revised Milestone dates 

 Issues outside customer's control

The Connection Milestone Management process recognises that there may be a small number of exceptional issues that Customers cannot control and which may lead to project delays. Delays occurring because of such issues may not trigger the Milestone Remedy Notice Period, provided that the Customer engages with UK Power Networks and, acting in good faith, evidence the issue. Examples of such exceptional issues include: 

• Force Majeure: Force Majeure is a provision in a contract that excuses a party in circumstances where performing its contractual obligations becomes impossible or impracticable due to an event or effect that the parties could not have anticipated or controlled 
• Planning decisions delayed by planning authorities: where a Customer has made a planning application (i.e. Milestone M1 is met) but the planning authority has not decided.
• Planning appeals and third-party challenges: Where a planning decision by the planning authority is challenged through a formal appeal process by the Customer or a third party to that decision.
• Where a relevant authority places an obligation on the project, which could cause the Milestone/tolerance timescales to be exceeded and change the project status e.g. Pre-Planning Requirements.
• Any delay which is caused by UK Power Networks (e.g. the Customer/ICP is awaiting a required input from the UK Power Networks).

Where a project experience delays because of the above the Customer must discuss the specifics of the delay with the UK Power Networks at the earliest opportunity; and provide reasonable evidence to justify the specific delay.  

Where the Customer provides evidence that the Milestone was not met due to events outside its control, UK Power Networks can, at its discretion, issue a variation to the Milestone date(s).