Potential new levies for those with half hourly electricity supplies

The way businesses use energy is continuing to come under scrutiny particularly those larger energy users out there.

Ofgem started the process with the introduction of the P272 legislation. This changed maximum demand supplies (those with a profile number of between 05 and 08) to become half hourly supplies. Part of the rational behind this was to increase transparency in when energy is being used and when not.

Introducing DCP161!

The next stage of these changes is the equally enthrallingly entitled DCP161 legislation. In a nutshell this enables stiff penalties to be levied on businesses if they exceed their agreed supply capacity. For those businesses who regularly breach the limit these penalties could add up to 2% on to their energy bills.

The agreed supply capacity or ASC is the maximum demand that a District Network Operator (DNO) allows the customer to draw from the network.

In the past if a business exceeded their ASC they would merely pay for the excess energy they used. Under the DCP161 regulations this excess could be charged at up to three times their standard rate.

For those businesses with half hourly supplies now is a good time to review their current agreed capacity levels and make sure it is a fair reflection of regular usage. They should avoid setting the level too high, in the hope of avoiding penalties, as they will still have to pay for the expected demand.

We are happy to review your capacity levels for you to ensure your charges are a fair reflection of your usage over a year.

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