From 1st April 2018 Ofgem are introducing new measures to ensure that half hourly supplies that exceed their available capacity will pay significantly more. Currently, there is no penalty if a supply exceeds its available capacity other than the supplier charging you the excess kVA used at the prevailing available capacity rate. Generally this is a low amount on your invoice.
DCP 161 is a change to the DCUSA (Distribution Connection and Use of System Agreement) that will introduce Excess Capacity penalties for HH (Half Hourly) electricity supplies. The change is being introduced from 1st April 2018 to recover the additional costs that DNOs (Distribution Network Operators) can incur when customers exceed their available capacity levels. This penalty rate could be three times higher than the standard rate. The greater effect will be felt by those members where local demand for capacity is high. If your supply is regularly exceeding its assigned available capacity then, depending on consumption profile, you could see your overall electricity costs increasing by up to 1-2%.
Here at TEC we have the ability to report on demand versus available capacity and this is provided free of charge as part of our service to you.
One area that needs slightly more focus in the run up to 1st April 2018 is those profile class 05-08 supplies that have been converted to HH settled as a result of P272. Available capacity and maximum demand levels need to be understood in case they exceed available capacity levels.
As meters are converted TEC are working with our suppliers to make sure that we have the correct data and flows so we can highlight and support our members to mitigate against any excess capacity charges. In these cases members will need to agree revised import capacities or reduce demand at peak times to avoid these charges.
As usual if you have any questions related to the impact of DCP161 please contact your Member Services Advisor.
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