DCP 161 changes to excess capacity charges

This is how much it could affect your business by!

Excess charges are on average 81% higher than your available capacity charge although this does differ depending on your Distribution Network Operator (DNO). In several regions you will be paying double the standard price.

April 2018,  DCP 161 come into effect, the penalty charges will increase on average by an estimated 81%. The actual scale of change will vary significantly from region to region, with the last industry estimates indicating an increase of between 49% and 177% for low voltage sites and between 13% and 165% for high voltage consumers.

It is a change to the DCUSA (Distribution Connection and Use of System Agreement) that will introduce excess capacity penalties for half hourly electricity supplies.

In order to avoid additional charges businesses need to reduce demand at peak times.

The new measure, which has been introduced by OFGEM, means that from April 2018, businesses using HH meters that exceed their agreed consumption rates could see a dramatic increase in charges.

There is currently no penalty if a supply exceeds its available capacity beyond the charge that the supplier adds for excess KVA in the month of the breach at the standard available capacity rate.

The cost’s are usually minimal giving no incentive for users to review and increase their capacity when required.

It is a mandatory requirement for any UK based business that uses more than 100,000 kWh of electricity per year to have HH meters installed as a mandatory requirement.

For information and help in understanding this Ofgem implementation please contact your account manager or our admin team on admin@startenergy.co.uk

 

 

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