DCP161 – Another not so catchy Energy Industry acronym but an important one nonetheless
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DCP161 is the latest change to be introduced by Ofgem to ensure that any HH (Half Hourly) supplies that exceed the agreed supply capacity will now pay significantly more than the standard unit rate.
Currently, if a customer exceeds its available capacity no penalty is incurred other than the additional ‘consumption’ which is billed. As a result, despite this being something Zenergi monitor for customers on their Positive Energy Pack (PEP), there has been no real incentive for customers to review and adjust the agreed capacity as such.
However, with the introduction of DCP161 and a change to the DCUSA (Distribution Connection and Use of System Agreement) this will mean that customers can be charged a penalty rate up to three times higher than the standard rate !
The rates clearly vary by region and voltage and this scenario is always more critical in densely populated areas, however depending on the consumption profile if a customer regularly exceeds its agreed supply capacity this change could increase overall Electricity costs by as much 1 or 2%.
Interestingly, any Electricity meters that have been or are due to be converted to HH as a result of the 2016 P272 project are likely to have a standard capacity level applied in most cases without a specific capacity agreement in place, so it is therefore imperative to understand the maximum demand and required capacity levels for these sites as soon as possible so as to avoid unexpected breaches of the contracted threshold.
As always, we are here to help and guide you through this change, however unfortunately this is another industry change which is only likely to increase the price you pay rather than reduce it so therefore this is something we will be proactively analysing for you in order to provide the best recommendations in terms of what action to take and what suppliers provide best value, not just the cheapest day rate.
If you would like any further information or would like to understand your individual circumstances in particular please don’t hesitate to contact your dedicated Zenergi Customer Account Manager.