From the 1st April 2008 the Excess Capacity Charge will be higher than the Capacity Charge Rate, following requests by Distribution Network Operators.
The changes are part of DCP 161, a proposal launched by Distribution Network Operators (DNOs) to amend the DCUSA (Distribution Connection and Use of System Agreement). As a result Excess Capacity penalties will be introduced for Half Hourly electricity supplies and sites affected by P272 when demand levels surpass authorised capacity levels.
DCP 161 was proposed by DNOs who incur additional charges when a customer exceeds their authorised capacity levels. No penalties are currently issued to customers, instead they are charged for the excess kVA (kilo volt ampere) used that month at the standard capacity rate.
As a result of DCP 161, customers will be charged an excess penalty rate which is expected to be more than three times the standard rate, dependant on region and voltage. Therefore, exceeding your Authorised Supply Capacity (ASC) could lead to unnecessary extra costs.
The changes were initially proposed for the 1st April 2016 but following consideration by OFGEM the implementation date was pushed back to 1st April 2018.
If you would like further information on the new regulation & how you can protect yourself against these charges please contact us.