DCP 161, it’s time to make a change…
With the introduction of DCP 161 it is vital that businesses that are currently incurring excess capacity charges review their energy saving measures. In order to avoid additional charges businesses need to reduce demand at peak times. DCP 161 is a new measure introduced by Ofgem to ensure that half hourly (HH) supplies that exceed […]
With the introduction of DCP 161 it is vital that businesses that are currently incurring excess capacity charges review their energy saving measures. In order to avoid additional charges businesses need to reduce demand at peak times.
DCP 161 is a new measure introduced by Ofgem to ensure that half hourly (HH) supplies that exceed their assigned available capacity pay significantly more for any additional capacity. This initiative will be in full force by 1st April 2018.
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.
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. These charges are usually minimal giving no incentive for users to review and increase their capacity when required.
The introduction of DCP means that from 2018 HH (Half Hourly) electricity users will be charged and excess penalty rate which could be over three times higher than the standard rate.
The rates will vary by region and voltage, costs are expected to be higher in areas where there is a higher demand for capacity. Depending on the consumption profile, is the supply regularly exceeds its assigned available capacity, this change could increase overall electricity costs by up to 1-2{f28ba8b7cd80e2a72e2e4b0140ea6524aee5e72b0af8287d84bbf0c79910665b} or more.
Electricity meters that have been or are due to be converted to HH as a result of P272 (profile class 05-08), will be settles on the HH market in time for the introduction of DCP 161.
How can Inspired Energy help?
– We can analyse available capacity to establish whether an increase or decrease is required
– We can negotiate new capacity charges if your supply or capacity contracts are due for renewal between now and April 2018
– We can help you to reduce your energy consumption to avoid excess charges.
