DCP228 is a change to the current triple-tiered (Red, Amber and Green) scaling methodology used to calculate the Distribution Use of System (DUoS) charges. Currently units are heavily weighted towards the Red tier, which can cost up to twenty times more than units used in the Amber and Green tiers.
Ofgem have reviewed the scaling methodology and will be making changes to this triple-tiered system, balancing charges more evenly throughout the day. These changes take affect from 1st April 2018.
Changes across the Red, Amber and Green bands have been put in place to better reflect the average national demand.
How could this impact my business?
With the exception of the UK's larger electricity connectors, whose charges are scaled under the Extra High Voltage Distribution Charging Methodology, all businesses will be impacted by DCP228.
The impact will vary from business to business and depends on a number of factors including; consumption profile, voltage level and region. To help your business understand the potential impacts we've developed the DCP228 Profiling Tool. Adjust the setting on this online tool to see how DCP228 could affect your business.
How can I mitigate the impact of DCP228?
As the changes come into affect, the focus will shift from load management (although this will still have an impact) to energy efficiency measures. Being able to monitor consumption is also vital, as without accurate reporting, businesses won't be able to identify areas to reduce their consumption.
DCP228 is unavoidable and therefore we advise businesses to start preparing for the change now. Get in touch today to see how Inprova Energy can help you effectively manage your energy consumption.