The Leading News & Information Service For The Facilities, Workplace & Built Environment Community

Thursday, 28 May

Whistle Blows for Penalty Kick

Ofgem is introducing a new measure to ensure that half hourly supplies that exceed the assigned available capacity will pay significantly more.

DCP 161 is a change to the DCUSA (Distribution Connection and Use of System Agreement) that will introduce Excess Capacity penalties for half hourly electricity supplies. The change is being introduced from 1st April 2018 to recover the additional costs that DNOs (Distribution Network Operators) can incur when customers exceed their available capacity levels.

Currently there is no penalty if a supply exceeds its available capacity beyond the charge the supplier adds for the excess kVA in the month of the breach, which is charged at the standard available capacity rate. The amounts are often minimal giving no incentive for users to review and increase capacity where required.

DCP 161 means that from April 2018, users will be charged an excess penalty rate which could be over three times higher than the standard rate. The applicable rates have not yet been published and will vary by region and voltage. It is expected that in areas where demand for capacity is high the costs will reflect this. If a supply is regularly exceeding its assigned available capacity, this change could increase the overall electricity costs by up to 1-2% or more depending on the consumption profile.

For supplies that have been or will be converted to half hourly as a result of P272 (profile class 05-08 Non half hourly supplies), these will be settled on the half hourly market by the time DCP 161 comes into effect. It is vital that the available capacity and maximum demand levels are understood in case these supplies are exceeding the available capacity levels.

Melanie Kendall-Reid the Compliance Director for energy services provider Carbon2018 commented: “Any sites that are incurring excess capacity charges need to agree a revised import capacity or take energy saving measures to reduce demand to avoid these charges. Where a supply is not currently exceeding the available capacity level but may do in the future due to a planned increase in usage, it is vital that a review is undertaken and an increase in available capacity is applied for ahead of the change to avoid incurring significant additional costs. A successful application for additional capacity, particularly  in constrained areas, can take many months to complete so action is needed now for at risk supplies to complete this before the 2018 deadline.”

Picture: Do ya hear that whistle blowing

Article written by Brian Shillibeer

Share



Related Articles

Six Ways Facilities Managers Can Plan For A More Sustainable Future

In honour of Earth Day, here are six simple ways facilities managers can plan for a more sustainable future.  It’s a common misconception that making...

 Read Full Article
IP Week Conference – Energy Industries And Climate Experts Collaborate

Environmental groups, climate change experts, and representatives from the energy industry came together to discuss the climate emergency in a three day event. At the...

 Read Full Article
UKEM – 10 Years In The Energy Industry

UK Energy Management, who provides a bespoke utility consultancy service, is celebrating a decade in business this month by sponsoring a series of networking...

 Read Full Article
TCC Announced As Lead Innovation Partner At Futurebuild 2020

Three of the largest R&D initiatives in the history of the UK’s construction sector are set to appear together at a trade event for the first time, as the UK...

 Read Full Article
Pilot Group Energy Management System Expects To Save One Million Tonnes of CO2 in 2020

Pilot Group’s EnergyMgr 2.0, launched in October, is expected to save more than one million tonnes of CO2 being produced in 2020.   Intelligent...

 Read Full Article
Wet, Wet, Wet - For Some But Not All

Many people in England will remember Autumn 2019 as a very wet season, yet this hasn’t been the case across the whole of the UK. There was significant flooding...

 Read Full Article
Comment On National Grid Blackout Investigation

This week ending August 23, Ofgem published the initial report on the National Grid’s investigation into the blackouts that occurred on August 9. Tom Edwards...

 Read Full Article
Winning Awards Before It's Been Built

On July 30, Coldefy & Associates and Dr. Cédric Guérin won the 2018 Architizer A+Awards Jury Winner in the Unbuilt Sports & Recreation category for...

 Read Full Article
Low Carbon Breathes Life Into City Economy

Want jobs, public health and social inclusion? Make sure your city investment is low carbon says a new report - from a coalition that includes over 40 research...

 Read Full Article
Where There's Muck

A new era of electricity generation has dawned in North Yorkshire after a pioneering energy from waste plant was declared fully operational. Allerton Waste Recovery...

 Read Full Article