DCP 161 – EXCESS CAPACITY CHARGES
As of 1st April 2018, DCP 161 is now 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 also known as KVA , 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.
Previously, 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. This has now changed and customers can pay up to four times the amount for exceeding their agreed KVA depending on your distribution network.
Utility Team have this in hand, if we hold a valid letter of authority we are currently requesting your HH data to check if you have gone over your agreed capacity over the last 12 months. If you have gone over we will have a conversation with you about increasing your KVA to a suitable level that ensures you do not face penalty charges. We will help you with the application process to the Distribution Network to increase your KVA.
Act Now, these penalties are non-negotiable and will be passed through on your electricity invoices.
If you have a HH supply please contact us immediately to check if we have a valid letter of authority on file, we will advise you of the best way forward.
Does your business need to increase or reduce its Available Supply Capacity?
Reducing your Available Supply Capacity
Distribution costs make up between 25-30% of overall electricity costs. They are often pass through costs invoiced by your Electricity Supplier and depend on the location and size of the site as well as the Available Supply Capacity.
Sometimes when you move into a site, you may be paying for more capacity than you need as this is what was agreed with the previous tenant. With Capacity Matching Projects from TED, ensuring the electricity connection arrangements with your distributor are appropriate for your requirements can result in significant cost savings.
Increasing your Available Supply Capacity
On the other side of the coin is the need to increase your kVa. Companies often make the mistake of purchasing new machinery or equipment without ensuring they have enough available capacity to cover it. Commonly this happens with new air conditioning systems, or factory machinery.
If you significantly increase the amount of power you draw from the grid you should always make sure your kVa allowance has been arranged in advance with your network operator; or you will most likely be charged excess capacity charges by your DNO. To find out more about our new connection service and how we can help your business to make significant savings please contact us today!