This is an important announcement for all businesses that use half-hour and half-hourly settled meters.
As of 1st of April 2018, if your business uses a half-hourly meter and you exceed your agreed capacity, then you will face excess capacity penalties.
The Office of Gas and Electricity Markets (ofgem) has introduced a new measure called ‘DCP 161’, which is a change to the ‘Distribution Connection and Use of System Agreement’ (DCUSA) to introduce penalties for companies with half-hourly supplies that exceed their available consumption rates.
DCP 161 will be effective as of the 1st of April 2018 and businesses that exceed their available half-hourly supplies could face dramatically increased charges. This new measure will ensure that any additional costs that the Distribution Network Operators (DNO) may incur when companies exceed their available capacity are recovered.
As of now, if you have exceeded your available capacity, then you won’t face any penalties, except for the charge that your supplier adds for the excess kVA at the standard rate. Therefore, due to there being no penalties for excess consumption, there are no incentives for users to review their usage and increase their capacity if required.
However, if you do not exceed your available capacity, which is also known as kVA, then you will not face any charges or penalties.
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If you have exceeded your agreed capacity or if you have recently transferred to a half-hourly meter and you would like a professional to check for you, then please get in touch with one of our specialists and we will be more than happy to help.
For more information regarding the changes to available capacity, please see the Office of Gas and Electricity Markets (ofgem).