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 Cheryl for your help today l

"Thank you Cheryl for your help today l. Great customer service."

This review was posted by David Melling on the 08th of November 2019

Really nice to talk to someone I could…

"Really nice to talk to someone I could understand, rather than a foreign call centre. Lorraine talked me through everything clearly, and it was all sorted quickly. Highly recommended."

This review was posted by Steve Ellis on the 08th of November 2019

Mark Weeks was very helpful and…

"Mark Weeks was very helpful and knowledgeable, in the advice he gave me. He was courteous and responded promptly to my emails. I would highly recommend him."

This review was posted by Technodoc on the 08th of November 2019

I have just renewed my gas with Cheryl…

"I have just renewed my gas with Cheryl Sreenan on Switch My Business. I was very happy with her helpful advice and she was efficient and friendly. I would definitely use this service again."

This review was posted by Mary Duckett on the 07th of November 2019

customer service ***

"A pleasure to speak with someone who listened to me and was very helpful and talked me through everything ,thanks very much 10 out of 10 for customer service.Would tell anybody to use this company ."

This review was posted by graham on the 06th of November 2019