Do you know if you’ve breached your electricity capacity… You don’t know? Then we would recommend you find out, because from Spring 2018, these charges are changing dramatically!
Capacity charge are a set charge levied by your local Distribution Network Operator (DNO) for investment and maintenance of the local electricity network and is based on the agreed capacity of a site. This is also referred to as an Available Supply Capacity (ASC) or Maximum Import Capacity (MIC) and is applicable to all Half-Hourly (HH) sites, including all P272 impacted sites moving forwards (see P272 blog).
To allow the local distribution companies to manage the supply of electricity on their part of the network, they agree with every end user a maximum amount of electricity that they are allowed to use at any one time. This is measured in kVa and collected for the distribution companies by the energy suppliers and therefore it appears as a charge on your electricity bills, however, this is only applicable to HH sites.
So, what is changing?
From Spring 2018, new tariffs will apply to these contracted capacity points and for any Excess Capacity used. Excess Capacity is charged for any additional electricity that is used over and above your contracted capacity levels.
The current cost for capacity is similar across the UK market, however under the newly introduced tariffs, any consumption that exceeds the contracted capacity will cost significantly more and will differ by region, much like the current Distribution Use of System charges (DUoS), and increases will be as high as 80%. (You can visit local DNO’s websites to find out your 2018/19 charges).
How to identify your Available Supply Capacity (ASC)?
EasySwitch Energy are assisting our clients in finding out their ASC and offering support if any action needs to be taken to avoid incurring excess charges or even reducing the capacity, in cases where it is set too high.
Are you under your Available Supply Capacity?
In our experience, we find many sites are often using much less than their ASC. In these cases, reducing your capacity level to something more reflective of your sites consumption can save you money.
If you want to discuss this further with a member of our team, contact us at firstname.lastname@example.org and we’d be happy to help.
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