Guest Blog: Julie Plunkett – Excess Capacity Charge

by 29 January 2018

Important announcement for all companies with half hour and half hourly settled meters

As of the 1st of April, 2018, if you exceed your available capacity that is set with the DNO you will face penalties.

Historically, companies would be charged for their agreed capacity cost for excess capacity used -however this will change with Ofgem’s DCP 161.

From the 1st of April 2018, DCP 161 will be in force. DCP 161 is a new measure which has been introduced by Ofgem to ensure that half hourly (HH) supplies that exceed their assigned available capacity pay significantly more. 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. This change will ensure that the additional costs that DNOs (Distribution Network Operators) can incur when customers exceed their available capacity levels are recovered.

Currently, if a supply exceeds its available capacity, other than the charge the supplier adds for the excess kVA at the standard available capacity rate, no penalty is charged. As a result, there has been no incentive for end users to actively review and increase capacity where required.

If you do not go over your agreed capacity, also known as KVA, then there’ll be no new charges/impact.

If your capacity is exceeded or you have recently moved from a non-half hourly to a half hourly settled meter and you would like us to check for you please contact us without delay and one of specialists will be happy to assist:-

Utility Team

02476 997 901

For further information on these changes please see the following link from Ofgem:

https://www.ofgem.gov.uk/sites/default/files/docs/2014/10/dcp161_d_0.pdf