Energy Market Changes – what you need to know – DCP 161 & DCP 228
In this update, we bring you the latest on some key energy market changes.
Like all industries the energy market changes regularly and is full of acronyms and jargon. So what do you need to know about the changes that came into effect in April of this year?
DCP 161 relates to network capacity and how much you use. Limits are agreed with your network provider and changes to charging came into force 1 April 2018. Each business has a set capacity agreed that relates to the maximum power input they can access from the grid.
In the past, if you breached a limit, there was a standard fee for any excess. From 1st April any breaches in your capacity limit incur a penalty charge of up to three times the standard rate.
It is, therefore, crucial to review your capacity limit, something troo is more than happy to help assist.
DCP 228 relates to time of use tariffs which are arranged in three bands, red, amber and green. Red bands are typically much more expensive than amber with the green cheaper again. Progressive businesses have therefore adopted a strategy to avoid higher red periods.
From April 2018, the bands have been flattened in cost, resulting in the difference between them being far less. Some high consuming users during peak times may, therefore, see bills reduce. Those adopting peak use avoidance, however, may see their strategy bear less fruit.
DCP 161 and DCP 228 make up 10-15% of the average power bill, so both these changes are essential to understand.
The minimum energy efficiency (MEES) regulations now mean both public and private landlords cannot grant, or renew a tenancy if the property has an EPC rating of F or G.
It is possible to self-certify for exemption, with a little effort, but penalties can reach £160,000 per property.
The team at troo are always ready and very willing to cut through the jargon and help you understand how these things affect your business.
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(copyright troo April 2018)
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