The UK Retail Landscape
The UK retail landscape is in constant flux. The high street evolves to accommodate changing trends, and as a ...Read More
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.
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.
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.
Thank you Lorraine for all your help…
"Thank you Lorraine for all your help today. Switching our business energy provider was so easy with you and you found us a fantastic deal. Many thanks, Sandra Harwood."This review was posted by Sandra Harwood on the 31st of March 2020
great help in difficult times
"thank you Cheryl for your help today and sorting me a great deal under very different circumstances"This review was posted by Yvonne Fagan on the 30th of March 2020
Thank you Mark Street,
"Thank you Mark Street, Thank you for your swift and professional response to my inquiry and your friendly service."This review was posted by Anna Jensen on the 30th of March 2020
Thanks again Mark Weeks!
"As a result of such good service from Mark Weeks with a previous energy contract I came straight back for help with another and again, I could not fault the service."This review was posted by Lowther Farms on the 28th of March 2020
"Had brilliant service from Mark. Very polite, informative, brilliant service. Kept me informed every step of the way. Very smooth transition. Highly recommended. Thank you Mark, brilliant service."This review was posted by HILLs on the 27th of March 2020