quote
menu

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

Cheapest business energy in the North West

Business Energy Costs Post-Brexit

North West businesses need to act quickly to secure their energy prices, before Brexit cost increases With the...

Read More

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
Excellent, 9.9 / 10

Thank you Mark!

"Having used Switch My Business for the first time, we were lucky to be connected to Mark Weeks. Mark was extremely patient and helpful throughout the entire process and explained the appropriate steps we should take before we move providers and was upfront and honest about anything else. Would strongly recommend their services and would like to thank Mark for all his help."

This review was posted by Clare Smyth on the 20th of September 2019

Have used Switch my Business on a…

"Have used Switch my Business on a number of occasions and extremely happy with the service. A special thanks to Mark Weeks who is more than helpful."

This review was posted by Liz Riley on the 19th of September 2019

Professional and relatable

"I’m always nervous about speaking to companies as a small business because I’ve been taken advantage of more than once and ended up with huge bills. I spoke to Cheryl today who switched my commercial bills over for me and saved me an amazing amount. She was great, professional and thorough without making me switch off with her great sense of humour. The deal she got me was also brilliant. Thank you Cheryl I will be recommending you in future"

This review was posted by Emma on the 18th of September 2019

friendly and efficient service

"friendly and efficient service, didnt use in this instance, but came back with slightly better rate, thank you Mark"

This review was posted by Anne Bayliss on the 18th of September 2019

Cheryl Sreenan was most helpful and…

"Cheryl Sreenan was most helpful and informative and very pleasant to talk with and dealt with all the boring details in high speed fashion but not without making sure I fully understood all that she was saying. Highly recommended"

This review was posted by Jude Curtis on the 17th of September 2019