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 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.
Lorraine Carey was great
"Lorraine Carey was great ! Kind of took all the hard work out of comparing, and got us on a great deal Thanks again Chris"This review was posted by Chris sharp on the 12th of December 2019
nothing too much trouble
"once again, i have dealt with Cheryl, who has taken me through the whole process, and with her teams help, have located an incorrectly registered meter, got it corrected, and onto a great deal. many thanks again. Allan"This review was posted by Allan B on the 11th of December 2019
Mark Weeks was thorough
"Mark Weeks was thorough, professional and friendly. I would not hesitate to recommend him and his company."This review was posted by Dennis Sullivan on the 11th of December 2019
Switching was made easy
"I had problems getting hold of my previous supplier and decided to change. I tried switch my business and Cheryl Sreenan made my problems disappear. Thank you very much for all your help."This review was posted by sean boswell on the 10th of December 2019
Cheryl was very friendly and helpful…
"Cheryl was very friendly and helpful and made the switching process totally painless."This review was posted by Lynn Sebbage on the 09th of December 2019