P272 related information
What follows P272?
DCP 161 is the following agenda set by ofgem, this is set to take place and be fully in effect from 1st April 2018. This next step can be potentially financially damaging if you do not make yourself aware of it ahead of time. By using Data Jigsaw for MOP & DC you will empower yourself with the required tools to be able to monitor the effected sites. Full site capacity data can be retrieved via the services of Data Jigsaw.
So what can you do now?
Those who are moving from non-HH to HH meters are slightly vulnerable as they may not know their available capacity and should seek advice to establish the agreed capacity. Also, if you have any supply or capacity contracts due for renewal between now and April 2018, it would be prudent to negotiate your capacity charges, as excess charges will be based on the supplier you choose.
If you want to increase your available capacity or are looking at ways to reduce your energy consumption and avoid excess charges, Data Jigsaw can help. Simply get in touch today.
DCP 161 Information from OFGEM
DCP 161 Information from Data Jigsaw
From 1st April 2018, DCP 161 will be in force. DCP 161 is a new measure which has been introduced by Ofgem to ensure that half hourly (HH) supplies that exceed their assigned available capacity pay significantly more. It is a change to the DCUSA (Distribution Connection and Use of System Agreement) that will introduce excess capacity penalties for half hourly electricity supplies. This change will ensure that the additional costs that DNOs (Distribution Network Operators) can incur when customers exceed their available capacity levels are recovered.
Currently, if a supply exceeds its available capacity, other than the charge the supplier adds for the excess kVA at the standard available capacity rate, no penalty is charged. As a result, there has been no incentive for end users to actively review and increase capacity where required. However, with the introduction of DCP 161, users who exceed their capacity will be charged an excess penalty rate which could be up to three times higher than the standard rate. The applicable rates will vary by region and voltage, with costs expected to be higher in areas where there is a higher demand for capacity. Depending on the consumption profile, if the supply regularly exceeds its assigned available capacity, this change could increase overall electricity costs by up to 1-2% or more.
Electricity meters that have been or are due to be converted to HH as a result of P272, will be settled on the HH market in time for the introduction of DCP 161. To avoid usage exceeding capacity levels it is essential to understand the available capacity and maximum demand levels of these supplies. Any sites that are incurring excess capacity charges will need to agree a revised capacity or take energy saving measures to reduce their maximum demand.
DCP 228 Information from Data Jigsaw
What if there were less peak periods of electricity usage?
DCP228 makes significant changes to the way that business electricity use of network charges are costed, the aim is to enable distribution network operators (DNO) to recover costs for the three-time bands: Red, Amber & Green in a more reflective way they incur costs.
These charges currently make up part of the Distribution Use of System (DUoS) charges, the purpose of the change is to more accurately reflect the costs incurred by network operators during peak and non-peak periods.
DCP228 changes will make an impact on your business energy bills and should also cause you to contemplate and examine the times that your business uses electricity. Below is our description of what is happening & how we anticipate it will affect your business.
What is DCP228?
The items in DCP228 were originally discussed in DCP123 back in August 2014 Ofgem rejected the proposed changes but did encourage the industry to develop the work further. British Gas raised DCP228 in January 2015 and, following the consultation period and ensuing decision made in September 2016, will be brought into force by Ofgem. The earliest date DCP228 could be implemented is 01/04/2018 but will more than likely be 01/04/2019.
DCP228 affects how customer tariffs are set under the Common Distribution Charging Methodology (CDCM) and the effect will be a balancing of the charges that reflect the three-time bands: Red, Amber & Green within DUoS charges, this means the cost difference between Red, Amber and Green periods will be less significant.
A closer look at DUoS charges
As it currently stands using the Common Distribution Charging Methodology (CDCM) businesses who use electricity during DUoS Red Time Band (Peak) periods are charged greater than either Amber or Green (Non-Peak) periods. Under DCP228, charges during Red time band periods will be lowered, and charges during Amber and Green slightly raised. This in effect will flatten the charging structure.
How will I be affected by the changes?
All businesses will be affected by DCP228, with exception to the businesses that are controlled under EHVDCM Extra High Voltage Distribution Charging Methodology. The UK’s larger electricity connectors.
For many businesses, DCP228 will create a rise in energy costs, yet those that currently use a lot of their electricity during the Red time band (Peak) periods may experience a small decrease to their electricity invoices.
A side effect of the DCP228 changes will mean that any businesses that have already made an investment in any form of load management system will see savings reduced. Because these systems are based on benefits based on DUoS (RED, Amber & Green Time) charges, this also includes Triad charges. The present capacity market and any revenues from frequency response will not be affected.
Ofgem paper on the matter can be found here