New energy legislation DCP 161 excess capacity charges

From 1st April 2018, Ofgem are introducing new legislation to ensure that half hourly (HH) supplies that exceed their assigned available capacity pay a penalty.

“Currently, if a supply exceeds its available capacity, the supplier will charge for the excess kVA at the standard available capacity rate, no penalty is charged. However, with the introduction of DCP 161, users who exceed their capacity will be charged an excess penalty rate which could be up to three times higher than the standard rate. The rates will vary by region and voltage, with costs expected to be higher in areas where there is a higher demand for capacity.

Electricity meters that have been or are due to be converted to HH as a result of P272, will be settled on the HH market in time for the introduction of DCP 161. To avoid usage exceeding capacity levels it is essential to understand the available capacity and maximum demand levels of these supplies. Any sites that are incurring excess capacity charges will need to agree a revised capacity or take energy saving measures to reduce their maximum demand.”

So what can you do?

Firstly, check your bills regularly. If you are being charged and you cannot reduce your demand you will need to apply to the Distribution Network Operator for an increase. In the South East this is UK Power Networks. For other regions please refer to the link below http://www2.nationalgrid.com/UK/Our-company/Electricity/Distribution-Network-Operator-Companies/ 

You can also consider reducing peak demand usage to avoid triggering the excess – this may be about simply moving usage around. Half Hourly data will help identify these trends.

If you are impacted by P272 regulations you will need to check with your existing supplier what the available capacity is being set at. This might not be evident until after the meter has been upgraded to HH and the first bill is available. You will then need to check future bills to see if this triggers excess charges.

If you have any quetsions about this then please do get in touch with the team

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