DCP228 and Business Electricity

What is DCP228?

DCP228 is a regulation to be introduced by Ofgem in April 2018 which will change the way business electricity charges are calculated by Distribution Network Operators (DNOs). Currently, distribution charges are make up 19% of customers’ business electricity bills and are passed down from network operators. DNOs incur the charges when distributing electricity, this cost is then passed onto energy suppliers where the charges are applied to bills received by business energy customers.

The introduction of DCP228 aims to accurately reflect the distribution costs incurred by network operators during peak and non-peak periods. Colour coded bands are applied to periods depending on their level of demand. Red bands are applied to periods of high demand, Amber bands are for medium levels of demand, and Green bands are assigned to periods of low electricity demand.

From 1st April 2018, the charges for Red, Amber and Green bands will be altered under DCP228. The charges applied during Red periods of demand will be lowered slightly, while Amber and Green period charges will be increased. This aims to create a balance across the charging system currently in place.

What does this mean for business electricity costs?

If you use a half hourly meter to monitor your business electricity usage, DCP228 is likely to increase your energy costs.

However, if your business has a high electricity usage during peak demand periods, your energy costs may reduce slightly as a result of the charge balancing.

The DCP228 regulation’s impact on businesses will be determined by the region your business operates in and the DNO supplying your electricity.

What can I do to prevent electricity charge increases?

We advise that you monitor the periods in which your business uses electricity and aim to reduce your energy consumption during peak demand periods. By reducing peak demand electricity usage, you can generate cheaper business electricity bills as the charges applied to your usage will be lower than those during intensive consumption during peak periods.


For more advice on how you can mitigate the impact of DCP228 on your business energy bills, get in touch today on 0800 411 8830 and our team will be happy to advise on how you can reduce the distribution charges applied to your electricity bills.



Related Articles

DCP228 and Business Electricity

What is DCP228? DCP228 is a regulation to be introduced by Ofgem in April 2018 which will change the way busin...

Read More
energy news

DCP 161 – Excess Capacity Charges

If your business uses a Half Hourly (HH) meter for its energy supply, make sure you’re ready for DCP 161...

Read More
Scottish Power logo

Total Gas & Power

Total Gas & Power is a business energy supplier, wholly owned by Total SA. It has been a leading business ...

Read More
Excellent, 9.8 / 10

energy supplier

"Everything was explained clearly by the representative, Mark Weeks, and it made the renewal of our utility supplier painless. Prices quoted were competitive and we were able to secure a better price than expected. The process was quick and efficiently dealt with. Jim, owner of Four Seasons Greengrocers, Crediton, Devon"

This review was posted by Jim Bond on the 21st of March 2018


"Lorraine, the agent who attended to me, was extremely efficient and professional. The quotations obtained were very competitive and presented in an easily understandable format. All queries were attended to and replies forthcoming speedily. As a representative of the organisation, I could only present the proposals I obtained and, unfortunately, the committee elected to use another company. From my point of view, Lorraine made my task to gather all relevant details very easy and her attitude was professional and courteous throughout. I have no reservations in recommending SmB to other businesses who seek to change energy suppliers."

This review was posted by Two Locks Church on the 20th of March 2018

Can not recommend highly enough

"Can not recommend highly enough. Pamwan was an absolute delight to deal with. Very thorough and patient which made the whole experience easy and straightforward."

This review was posted by Kirby Marie on the 20th of March 2018

Business switch

"Thank you Nicole for your efficient, friendly and patient service and returning paperwork so quickly to start the process."

This review was posted by Rita Westwood on the 19th of March 2018

thanks Mr Pamwan Johnson excellent service

"thanks Mr Pamwan Johnson excellent service"

This review was posted by kashif ahmad on the 19th of March 2018