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
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.
"Great Service! Cheryl found us a fantastic rate and led us through the process quickly. Would definately recommend. Thank You Cheryl"This review was posted by Worldcare Skip Hire Ltd on the 14th of December 2018
"Cheryl was very helpful on the telephone and rang back when promised with the information promised. Think we have secured reasonable electricity deals for our business needs. I would not hesitate to use this company again if needed."This review was posted by D Mac on the 13th of December 2018
Great Customer Service!
"Switched both our Gas and Electricity tariffs using Switch My Business today- had a fantastic experience. Cheryl was very polite and understood that i needed to go back to the Charity Committee before agreeing to anything. Some companies can be quite forceful but Switch my Business and Cheryl in particular have been nothing but helpful. We will be using them again! Thank you."This review was posted by Trentham Preschool on the 12th of December 2018
"Bhavni is a pleasure to deal with. She is very helpful and knowledgeable and having a direct contact is so refreshing instead of dealing with usually frustrating energy companies. I highly recommend."This review was posted by Esme on the 12th of December 2018
Fantastic Switch Experience Cheryl Sreenan
"Fantastic Switch Experience, Cheryl Sreenan was extremely helpful the phone call for switching took less than 10 minutes. I couldn't have asked for a better service in going through this process. Thank You"This review was posted by Sam Barlow on the 11th of December 2018