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

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
Scottish Power logo

Total Gas & Power

Total Gas & Power is a business energy supplier, wholly owned by Total SA. It has been a leading business ...

Read More
Excellent, 9.8 / 10

Excellent Customer Service

"I dealt with Mark Weeks at Switch My Business and it was a very positive experience. It was like chatting to a friend. Mark explained all of the different tariffs available, how each company billed and what the advantages and disadvantages of each product were. I felt happy that he was trustworthy and dealing with our supply with integrity."

This review was posted by Sarah-Jane on the 23rd of January 2019

Thank you Bhavni

"Wanted to say thank you to Bhavni for helping to switch my energy supplier. She was very helpful and made it a very simple and an easy process."

This review was posted by Staff Josephines on the 22nd of January 2019

Normally i do not use comparison sites…

"Normally i do not use comparison sites but i found Omar Farooq very helpful indeed.More importantly our electricty costs have been reduced by a significant amount.Mind he is a "red" which went in his favour,massively!!!!"

This review was posted by c allington on the 22nd of January 2019

Extremely good service

"Extremely good service, Aaron took the time to explain all the options clearly and was very helpful throughout. The switch over process (that I was daunted by!) has been managed really well. Great customer service"

This review was posted by Scott Works on the 18th of January 2019

Switching was made easy with the…

"Switching was made easy with the assistance of Cheryl. She was very efficient and called when she said she would. I wouldn’t hesitate to use them again."

This review was posted by Nicola on the 18th of January 2019