DCP161 Excess Capacity Charges

Ofgem are to introduce a new regulation called DCP161 which is to ensure that half hourly (HH) supplied meters that exceed their assigned capacity pay substantially more.

This new measure is to be introduced in April 2018 and is a change to the DCUSA (Distribution Connection and Use of System Agreement) and will impose Excess Capacity penalties for HH electricity supplies to recover the additional costs that Distribution Network Operators can incur when customers exceed their predefined capacity levels.

At present, there are no penalties in place beyond the charge suppliers add for the excess kVA in the month of the breach at the standard available capacity rate, and these rates are so minimal that there is no incentive for users to review their capacity allowance. But the new regulation is intended to change this and could see users being penalised by over three times higher than the standard rate.

The new rates are yet to be published, but it is expected that these will vary by region, voltage and in areas where demand for capacity is high, the costs will also reflect this.

It is vitally important that customers that have, or are due to change to HH supply meters because of P272 (profile classes 05-08), understand the available capacity and maximum demand levels in case these supplies are in breach of their capacity levels. Any premise in breach, needs to agree a revised import capacity or deploy energy saving measures to reduce demand at peak times and avoid these charges.

If you are unsure if your kVA capacity is suitable for your premises, please complete the short form below.

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