Bargate Signs 1,000 Home Exclusivity Deal with Connect It Utility Services

January 7, 2025

Hampshire-headquartered Bargate Homes has signed an exclusivity agreement with Connect It Utility Services to become its sole multi-utility provider. The partnership contract will facilitate over 1,000 new homes to be delivered by the award-winning housebuilder, during the next three years.

Over the past four years, Connect It has facilitated the power connection from the distribution network to each Bargate development under construction. The process starts with an application for a Point of Connection (POC) to the local Distribution Network Operator (DNO), assessing whether there is enough local infrastructure capacity to accommodate the energy needs of the new housing development. If the load required from the DNO network is available, Connect It facilitates an initial offer to secure the capacity. However, such agreements are subject to potential cost increases during the construction programme to fund additional upgrade requirements, design changes, and market fluctuations.

Mark White, Managing Director of Bargate Homes, said: “The challenge of accessing grid capacity has been getting worse. It becomes especially complicated when several developments have been consented in the same area and there is tense competition for grid capacity. This scenario frequently involves each developer paying for off-site upgrades or reinforcement works, in excess of the needs of each individual scheme.

“Programmes to construct the DNO network to provide the electrical load for a new development can stretch years into the future, which creates delays and increases cost uncertainties. As an SME, the costs for any early payments and/or delays affect us exponentially more than any of the major housebuilders. The uncertainty of future costs can also adversely affect project viability.

“The timing of applying for the POC is critical, as we need each new development to have some form of planning status. No SME housebuilder can afford to allocate significant resources for speculative projects that aren’t in a position to come forward. We have signed an exclusivity agreement with Connect It because we appreciate their expertise in utility solutions. They have become a proven partner, working on Bargate’s behalf to save us time and money.”

Laban Giles, Managing Director of Connect It Utility Services, said: “After many years of successful collaboration with Bargate Homes, we are proud to be appointed as the firm’s trusted multi-utility provider. This partnership is a testament to the collaboration we have built and reflects our unwavering commitment to delivering exceptional and reliable services for multi-utility solutions.

“The demand calculator for new homes does not currently consider the benefits of on-site renewable technologies such as solar PV and battery storage. Without accounting for these factors, developers face the risk of over-engineering development power requirements, potentially funding costly off-site upgrades for capacity that may ultimately prove unnecessary. A more holistic approach to demand calculation – factoring in renewable energy and storage solutions – would better reflect actual energy needs and reduce the risk of excessive infrastructure costs.

“The housebuilding industry and supply chain is fully committed to a gas-free future, but currently it is more straightforward to install gas into new homes than electricity. The delays, resulting cost, and impact to the delivery of new homes can be very frustrating. We look forward to playing a pivotal role in Bargate Homes’ ongoing success and fostering a long-lasting partnership, that will continue to drive innovation in the housing and utility infrastructure sectors.”

Bargate Homes has previously commenced work on two developments in Hampshire where at the outset of digging the first foundation, the company was unaware of the timings for the supply of electricity. For one of those sites, it took 10 months to confirm when power could be connected. By progressing with the groundworks and construction, Bargate had to take a calculated leap of faith.

Mark White added: “We were early adopters of EV car charging, with points having been installed to our homes prior to the legislation coming online. However, that process hasn’t been smooth, thanks to utility challenges. To enact Labour’s NPPF announcement, we urgently need to see some joined up thinking at the planning stage to enable energy providers to understand and plan for the pending local capacity demands.

“Early conversations need to take place with DNOs and developers about energy requirements at the Outline Application stage, with collaborative discussions about any upgrades that could be required. We also need electricity providers to take into account the renewable sources that will lessen demand on the grid, and may even negate the need for upgrades or reinforcement works.”

Bargate Homes’ flagship development is the £128m Rivercross scheme at the mouth of the River Hamble in Warsash, where 352 coastal-inspired homes are being built, including the recently launched Heron’s Quarter phase. Another major scheme is Heritage Place, North Stoneham, where 322 houses are being delivered on a former deer park on the outskirts of Eastleigh, Southampton.

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