I am about to start a self-build bungalow in Mitcham in South London and have just been quoted 10K from UK Power Networks for a single phase connection! I was budgeting about 3K and this could derail all my plans - I thought I was being generous with the 3K budget!

I have read somewhere that most DNO’s use sub-contractors to do their works and it is often possible to get a much lower price by getting one of these sub-contractor to quote directly. Does anyone know of/can recommend any contractors working in the London/South East, that would be able to quote for this? What are my alternatives? Or am I tied to the UK Power Networks monopoly?

Thank you
SF

Hi djh, The main part of the cost is to dig a trench from the main road (point of main power cable) along the pavement of a side road to the front of the site. About 20 meters. I offered to dig the trench on the piece of land between the site and the main road (which I also own but not part of the title of the plot i'm building on) but they said they cannot accept that.

Have tried to discuss and knock their price down but to no avail.

The price will normally be split between contestable and non contestable costs.

The former you can get other contractors to quote for it. But in my experience they all quote similar amounts.
In Shropshire the council see any road service installations as a money spinner so the make road closures requirements as difficult and expensive, as possible and they ruthlessly check the quality of the reinstatement.
These means contractors are exposed to more risk than they used to be.

Normally the electricity company will be happy for a wayleave over private land so its worth asking again what the issue is.

If their quote included VAT remember it should be zero rated to you.

If you google you can find companies that say they can do it all. Here is one example..

https://www.crownutilities.co.uk/electric-connection/

.. but I don't know if they really can do the lot or how much they have to get the DNO to do.

If they question the VAT refer them to VAT Notice 708 section 3.3.4 "Work closely connected to the construction of the building"

https://www.gov.uk/government/publications/vat-notice-708-buildings-and-construction/vat-notice-708-buildings-and-construction

Quote:

Subject to sub-paragraph 3.3.6, your work is closely connected to the construction of the building when it either:

(a) snip

(b) produces works that allow the building to be used, such as works in connection with:

•the means of providing water and power to the building (this can extend to the work required to make the connection to the nearest existing supply)

End Quote

VAT 708 isn't the easiest document to read but it tells people how much VAT they should charge you.

There is also a thread on the whole Self Build VAT reclaim scheme here...

https://forum.buildhub.org.uk/topic/6851-a-guide-to-the-vat-reclaim-process/

Yes I have been filling out that paperwork. Only hoping to start work early in the new year