On April 1, 2018, Ofgem will introduce a new measure to ensure that half hourly supplies that exceed the assigned available capacity will pay significantly more.
The DCP 161 charge is a change to the Distribution Connection and Use of System Agreement (DCUSA). The new tariff is being introduced to recover additional costs that DNOs (Distribution Network Operators) incur when capacity levels are exceeded by customers.
As it stands there are no real incentives for your business to actively manage your available site capacity and peak demand, as you are charged at the same rate as your allocated capacity.
However, with the stipulations in place, from April 1st you will now be financially penalized for doing this.
Any businesses incurring excess capacity charges will need to agree a revised impact capacity or take measures to reduce energy demand at peak times.
Here at The Green Energy Advice Bureau we can help you manage your capacity and find ways to increase your site capacity level. This will enable your business to optimize its energy usage to avoid excess charges.
The application process for further business capacity can be a slow process. Sometimes taking months to complete, so to avoid the financial risks why not contact us as soon as possible.
Our bespoke advice from our experienced staff could assist you. Contact us now for further information on 0191 3037750.