How do asset value payments benefit new construction projects?

When installing utility infrastructure on a new development, developers typically turn to the regional network operator to install, connect and, ultimately, operate the utility networks.

Unlike the regional operators, we can offer asset value payments to adopt your newly constructed utility networks, turning your pipes and cables into revenue-generating assets.

What are asset value payments?

When you install electricity infrastructure to power your new housing development, EV charging hub or data centre, it will usually be adopted by the local distribution network operator (DNO) or an independent distribution network operator (IDNO). The same applies to gas and water infrastructure too.

The network operator will own and operate your infrastructure for the lifetime of that asset.

Independent network operators pay asset value payments, also known as an asset adoption value, to acquire utility assets from developers and independent connection providers.

Only independent network operators are licenced by Ofgem and Ofwat to offer asset value payments to adopt utility networks. Incumbent regional operators are not permitted to provide asset value payments.

What are the benefits of asset value payments?

As a developer, ICP, UIP or SLP, asset value payments can help you by:

  • Reducing the upfront capital costs of designing and installing utility infrastructure on your development
  • Improving project cash flow and alleviating the impact of initial construction outlays
  • Increasing the profit of your construction project.

How are asset value payments calculated?

Every project is unique and we consider several factors when determining our asset adoption values for electricity, gas and water infrastructure.

We calculate our asset value payments based on the type of property, the site capacity, the expected load profile and the charging methodology for the site type and location.

We can also offer enhanced asset values to ICPs, UIPs, SLPs, developers and housebuilders with portfolios of projects. Using our bespoke modelling, we’re able to aggregate the utility asset values across your portfolio, as opposed to looking at each scheme on a project-by-project basis.

When are asset values paid?

We assign asset values to each individual connection within your project, meaning you don’t need to wait until the entire development is complete before you start to receive asset value payments.

You’ll receive asset value payments when your connection is energised with a meter installed and you’ve submitted the completion packs for us to adopt your asset.

Which utility assets can independent network operators adopt?

While some independent network operators only offer asset value payments to adopt electricity infrastructure, we’re a multi-utility network operator.

At mua, we offer asset value payments to adopt, own and maintain electricity, gas and water infrastructure delivering energy and water to new:

  • residential developments, including high-rise buildings
  • industrial and commercial properties, such as logistics hubs and industrial parks
  • EV charging infrastructure, including fleet charging hubs and service stations
  • data centres
  • battery energy storage systems
  • solar PV projects.

We adopt networks of all sizes. As an independent distribution network operator (IDNO), we’re licenced to own and operate low voltage networks right through to extra high voltage (EHV) electricity connections at 132kV. As an Ofgem-regulated independent gas transporter (IGT), we own gas networks operating as 7 bar and below.

Can I get an asset value payment for my existing developments?

We can only offer asset value payments to adopt newly constructed networks that haven’t already been adopted by the local regional network operator or another independent network operator.

However, we can offer asset value payments to adopt connections to existing developments where you’re upgrading your supply. For example, if you currently have a low voltage supply to your industrial unit but require a higher voltage capacity.

After arranging a disconnection with your local distribution network operator (DNO) and contracting an independent connection provider (ICP) to carry out the necessary upgrade works, we will adopt the new infrastructure and provide you with an asset value payment.

How long does it take to receive an asset value quotation?

We know it’s important to get asset value quotes quickly. By using our online asset value portal, you can get an instant quote for your project.

If you’ve not already got access to our portal, get in touch with our Business Development team at assetadoption@muagroup.co.uk.