DCP161 is a new measure introduced by Ofgem

There are a number of call centres that have been employed to run a “scare tactic” campaign, with a blanket statement being given to all business, regardless of its relevance. So, following a spate of enquiries over the last few weeks regarding DCP161 changes, we thought it worthwhile to put some information out there to allay some of the myths, and provide some clarity.

From the 1st of April 2018, if you exceed your agreed available capacity that is set with the DNO you will face penalty charges higher than previously.

Both historically and currently, companies are charged at the level of their agreed capacity cost for excess capacity used (eg. KVA charged at @£1/KVA/month, means overuse was charged at the same level) – however this will change with Ofgem’s DCP 161.

From the 1st of 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 additional penalty is charged. As a result, there has been no incentive for end users to actively review and increase capacity where required.

 

If you aren’t going over your agreed KVA level, this legislation will have no effect at all.

As a further note, unless you are running on Half Hourly supplies, this will have no effect at all. If you’re unsure if this applies to you, simply get in touch with us, and we will be happy to assist with any account queries as always!

Jim Corley, Senior Broker at True Gas Ltd