Changes in Distribution Charges from April 2018

Two important changes to Distribution (DUoS) Costs will come into effect from 2018 for standard Half Hourly connected customers.

Capacity Charges

Half Hourly (HH) supplies that exceed their Agreed Supply Capacity (ASC) will pay penalty rates. Currently there is no financial penalty for exceeding the assigned ASC (customers simply pay for the extra used each month), but this can cause problems with grid infrastructure.

From April 2018, excess penalty rates will apply up to 2.5 times the standard rate depending on geographical location.

Supplies that have Maximum Demands close to or in excess of current ASC levels may find it financially advantageous to increase the current ASC requirement in preparation for this change.

DUoS Unit Rates

DUoS unit rates are split into Red, Amber and Green. Whilst time bands differ slightly in different areas, generally Red refers to the period between 4pm and 7pm on weekdays, Amber covers the remaining weekday periods and Green covers evenings and weekends.

Currently Red periods can be as much as twenty times more expensive than the rest of the day but Ofgem have agreed to change the methodology to remove any distortion towards these periods.

The only exception to the rule is London, where Red unit rates will increase and Amber and Green unit rates will bear zero cost.

Clients with base load profiles such as 24/7 manufacturing operations are likely to see price rises as amber and green periods become more expensive, whilst clients with peak load profiles could be better off.

 How Can Inspired Energy Help?

Inspired Energy are working on a number of schemes and solutions to mitigate rising energy and third party costs.

For more information contact Jamie Tabord on 01772 674 188