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 was great to deal with and was…
"Lorraine was great to deal with and was able to sort out my new electricity contract quickly and zero hassle... thank you"This review was posted by Keith Hall on the 17th of January 2020
thank you to Cheryl & Luke
"Received some great advice and made a saving too. Whilst transferring our account to a new tariff I mentioned I had just started another new business, Having picked Cheryl's brains re another supply address, I'll be back in touch next week to sign up that one too."This review was posted by Lesley on the 16th of January 2020
Very good product and service
"Very good product and service. a big thank to Cheryl Sreenan who is always patient and helpful finding us great deals. using their service for our second company this year as a return customer. thank you,"This review was posted by Leo leod on the 16th of January 2020
Great Service received today from Luke…
"Great Service received today from Luke Hibbert quick and easy switch over for our gas supplier with a saving too! Highly recommended."This review was posted by Amy on the 16th of January 2020
5 stars for Cheryl who found me massive…
"5 stars for Cheryl who found me massive savings. Highly recommended."This review was posted by Cathy hooker on the 16th of January 2020