Energy supply - shocking charges to come | Low Energy Consultancy

Energy supply - shocking charges to come

Has your energy supplier or Broker spoken to you about the DCP 161changes?

Do you pay for excess kVa use as part of your electricity bill?

If they haven’t spoken to you about it, you might be in for a sharp shock.

Ofgem will introduce a new measure to ensure that half hourly supplies that exceed the assigned available capacity will pay significantly more. DCP 161 is a change to the DCUSA (Distribution Connection and Use of System Agreement) that will introduce Excess Capacity penalties for HH (Half Hourly) electricity supplies.

The change is being introduced from 1 April 2018 to recover the additional costs that DNOs (Distribution Network Operators) can incur when customers exceed their available capacity levels.

Currently, there is no penalty if a supply exceeds its available capacity beyond the charge the supplier adds for the excess kVA in the month of the breach at the standard available capacity rate. The amounts are often minimal giving no incentive for users to review and increase capacity where required. 

DCP 161 means that from 2018, users will be charged an excess penalty rate which could be over 3-5 times higher than the standard rate. The applicable rates have not yet been published and will vary by region and voltage.

It is expected that in areas where demand for capacity is high the costs will reflect this. If a supply is regularly exceeding its assigned available capacity, this change could increase the overall electricity costs by up to 1-2% or more depending on the consumption profile.

For supplies that have been or will be converted to half hourly as a result of P272 (profile class 05-08 NHH supplies), these will be settled on the HH market by the time DCP 161 comes into effect. It is vital that the available capacity and maximum demand levels are understood in case these supplies are exceeding the available capacity levels.

Any sites that are incurring excess capacity charges need to agree a revised import capacity or take energy saving measures to reduce demand at peak times to avoid these charges.

If you have been made aware of the changes and you’ve made provision for the excess – perhaps now’s the time to start thinking about how to trim the energy use or even start to self-generate.

Speak with one of our Energy Consultants to explain more on this subject and the benefits of kVa increase applications, power correction analysis and energy audits.