What's the Difference Between a Basic and Negotiated Electricity Connection Offer?

Posted on

If you need to connect a new building to an electric network, then you have to apply for a connection offer. You tell the company about your build and what you need, and then they make an offer that outlines the connection timescale and scope of work.

You can do this yourself or use the services of your installation contractor. In either case, you should learn about the type of offer you might get.

For example, some connection jobs get a basic offer while others get a negotiated one. What are the differences between the two?

What Is a Basic Connection Offer?

You typically get a basic connection offer for standard connection jobs. For example, this offer might apply to residential builds or to small commercial projects.

Basic offers require an already available supply. You also have to meet certain capacity requirements.

So, if you are building in a residential neighbourhood with current electric systems in the area, then you have a supply you can tap into. If your needs don't exceed the system's capacity, then you also qualify for a basic connection.

While the company might need to add an extension to supply lines to connect your building, this work won't be classed as significant. So, the advantage here is that you might not have to pay extra charges.

You can make a standard basic connection application. However, if you need to move more quickly, then you can use an expedited submission. This can fast-track your connection work.

What Is a Negotiated Connection Offer?

Not all connection jobs are simple. For example, if you are building in a rural area, or if you are constructing a building with more complex electrical supply needs, then you might not get a basic connection offer.

Here, the electric company might give a negotiated offer. These offers cover connections in areas without a current power supply. You might also get this kind of offer if your build needs significant work on the supply-side system or has larger than normal capacity needs.

In some cases, you might negotiate an offer with the company even though your requirements fall into the basic category. For example, you might want to change terms in a basic connection offer contract.

Your costs might increase if you apply for or are offered a negotiated connection contract. The company has to do more work on these offers, so they may charge you an additional fee.

To find out more, contact Energex subdivisions professionals. Their consultants and installation experts can help you assess your connection needs and help you make the right application.