Introduced by Ofgem, DCP 161 came into force on 1st April to ensure that half hourly (HH) supplies that exceed their assigned available capacity pay significantly more. Each HH meter across the UK has an agreed kVA level with the local distribution network and is charged at a rate which has been agreed within the supply contract. The penalty charge for exceeding your available capacity will increase on average, by an estimated 81%. This charge will vary significantly from region to region.
The purpose behind this new legislation is for the excess capacity penalties being enforced to assist the Distribution Network Operators (DNO) with balancing out network usage. The legislation will help encourage customers to manage their load more diligently or to request the correct level of capacity upfront.
So what can you do?
Those who are moving from non-HH to HH meters are slightly vulnerable as they may not know their available capacity and should seek advice to establish the agreed capacity.
If you want to increase your available capacity or are looking at ways to reduce your energy consumption and avoid excess charges, Inspired Energy can help.
Inspired Energy can assist you in the following ways:
- Analysis of available capacity to establish whether an increase or decrease is required
- Negotiate new capacity charges if your supply or capacity contracts are due for renewal Reducing your energy consumption to avoid excess charges
To find out more simply contact one of energy experts by completing and submitting the form below.