Businesses which exceed their daily capacity could incur commercial penalty charges during the winter period.
Suppliers could impose charges on customers who exceed their agreed daily allowance during the winter period (October to May). The commercial penalties would apply to any daily meter and have been put in place to deter businesses from setting daily capacity (DMSOQ) limits which are below their actual usage during winter, when demand is high.
These penalties which are sometimes referred to as 'ratchet charges' apply from the 1st of October to the 31st of May, when demand on the grid typically increases.
If a large site exceeds its daily limit during this period it may receive additional invoices as well as the basic monthly bill; this charge will vary dependent on how much energy has been used above the DMSOQ limit.
The DMSOQ will automatically increase during the winter season if the limit is exceeded and will continue to increase until this level reaches the Provisional Maximum Supply Point Capacity (PMSOQ).
These charges can be avoided by being aware of your daily limit and monitoring your energy usage which is made easy using Apollo Energy's data analysis services. Apollo can provide you with information to make informed decisions when setting your daily limit, providing more flexibility and helping you avoid charges such as this.
If you would like to learn more about Apollo's energy data analysis services or about additional supplier charges then feel free to get in touch by calling us on 01257 239500 or by requesting a call back using the form on our contact page.