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What is kVA allowance?

 

kVA is a unit of measurement of your authorised supply capacity. The DNO (Distribution Network Operator) set your rate charge as a pass-through cost, this charge is always applied. 

​In 2018 a new regulation was introduced by Ofgem to ensure that half hourly consumers who are exceeding their assigned available capacity are penalised (also known as DCP 161). As kVA is measured per unit, your existing energy supplier could be charging you for an allowance that is too high. It is often assumed that the only way to lower your price is through your consumption; this is where kVA analysis steps in.

What is kVA Analysis?
A kVA analysis will help your business determine its correct capacity to ensure the allowance is set in line with your businesses needs. If your kVA capacity is set too high, you will be paying for an allowance that you are not utilising; if your kVA is set too low, you could receive a penalty up to four times your standing charge. Carrying out a kVA analysis can help your business save a significant amount of money so that you can utilise this in other areas.

What would cause you to exceed your allowance?
Anything that will increase your electricity use will increase your kVA. For most companies, this involves the machinery and equipment. If you are using more power, ensuring your kVA capacity matches your consumption is essential, this can make things complicated when looking into your kVA. If you lower your kVA in line with your current capacity but then introduce new machinery and equipment, you will be using more energy, increasing your requirement, leaving you with a risk of receiving penalty fees.

 kVA analysis creates an accurate report of your consumption, making sure you have the right allowance to avoid excess charges. Solutions to lower your energy usage include:

 

  • LED lighting
  • Solar panels
  • CHP (Combined heat and power)

What happens if your organisations kVA is set too low?

If your kVA is set too low, your organisation could be faced with penalty fees, the price of these penalties will depend on your supplier. By using our services, we can set you to an appropriate allowance. 

 

How to alter your kVA allowance

To increase your capacity, you will need to contact the DNO with your MPAN number, site address, current and desired kVA. The relevant DNO will then contact you to discuss further; however, you will only be able to receive what is available. If the amount of kVA is not available, you will need to look for alternative options such as lowering your usage. Utility Team can do this whole process for you; our dedicated team of experts will collect all the relevant data to ensure your needs are met.

 

How can I find out my allowance?

At Utility Team, we can help you save significant costs through a kVA analysis. We will review your half-rate meter data to determine an appropriate level for your capacity to be set at; we can help you find ways to cut costs while focusing on your business's essential elements.

 

Through our energy audit, we carried out a kVA analysis for DPD. Since evaluating DPD’s kVA we have identified significant cost-savings and provided monitoring tools for benchmark analysis, this is something we can help your company achieve.

For further information on this, take a look at our case study, which discusses how we helped DPD in greater detail.

 

Find out more

 

For any queries regarding how we can help your organisation with your kVA Analysis, please get in touch and one of our team of experts will support your query.

 

Call us on 02476 997901, contact us via our online form, or email info@utilityteam.co.uk.

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