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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.
Just had a lovely conversation with…
"Just had a lovely conversation with Lorraine who was so very kind and helpful in getting the best electricity deal for our company. Its so nice to have someone to explain things without to many complications and I will speak to her again if I need any other help with switching tariffs. Many thanks again Lorraine you are a star!!"This review was posted by Sarah Smith on the 01st of June 2020
Excellent and prompt service by the…
"Excellent and prompt service by the lovely Cheryl. Made the whole process very easy and even managed to get me to finally understand a British Gas bill. Might go home and put my feet up now !!!"This review was posted by Lee on the 29th of May 2020
Great service - will use again.
"Very prompt service and Cheryl who I dealt with provided an excellent service in every way. Not only did she provide the best price but made the whole process very quick and easy."This review was posted by Debbie Lishmund on the 28th of May 2020
"Spoke with Cheryl after using the website this morning. Incredibly helpful and friendly and easy to deal with. Got everything sorted in super quick time! Will also be using for my electricity tariff too"This review was posted by Kelly Bluett on the 22nd of May 2020
Why can't everything be this simple?
"It was so simple, and Cheryl, account manager was a pleasure to deal with. I will certainly be contacting Cheryl again when our other utilities become due."This review was posted by Jenny Taylor on the 22nd of May 2020