DCP 161 & upcoming changes to excess capacity charges

Start Energy are always wanting to keep all our customers old and new up to date with all industry changes.

Your business could be at risk with new penalty charges, any business who use more than their agreed capacity will see an increase in their electricity spend of 1-2%.

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.

A full update on this can be found on this link through the Ofgem website https://www.ofgem.gov.uk/sites/default/files/docs/2014/10/dcp161_d_0.pdf

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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