DCP161 Explained
What it means for your excess capacity chargesIf you’ve spotted “DCP161” on a bill, a supplier letter or one of our posts, here’s what it means for you.
DCP161 is the rule change that made going over your site’s agreed capacity cost more. Since 1 April 2016, any excess capacity your half-hourly site uses is charged at the full rate, with no discount, so it pays to get your agreed capacity right. We’ll help you check it.
What Is DCP161?
DCP stands for DCUSA Change Proposal. The DCUSA is the rulebook between the local electricity network operators and the suppliers who use their networks, and every change to it gets a number. DCP161 was number 161, and it was all about excess capacity charges.
The energy regulator, Ofgem, approved it in October 2014 and it came in on 1 April 2016. The start date was set well ahead so businesses had time to react, and fewer customers would see their charges change in the middle of a contract.
Who Does It Affect?
DCP161 affects you if your site is half-hourly metered and has an agreed capacity, sometimes called maximum import capacity (MIC) or available supply capacity. That covers most low voltage and high voltage business connections, from a large hotel or school to a factory. If you’re not sure what your agreed capacity is, our guide to maximum demand and kVA charges will help you find it.
It doesn’t apply to the very largest sites connected at extra high voltage, which are charged under a different method, and it doesn’t cover capacity for exporting electricity, such as from solar panels.
What Changed for Your Bill?
Some businesses paid towards the cost of their network connection when it was built. In return, the network operator gives them a discount on their capacity charges.
- Before DCP161: That discount applied to your capacity charge and to any excess capacity charge too, even though you’d never paid towards capacity above your agreed figure.
- After DCP161: The discount stays on your capacity charge, but excess capacity is charged at the full rate.
One thing didn’t change. Excess capacity is still only charged for the month you go over, not for the rest of the year. So one bad month costs you that month, but if your site goes over every winter, you’re paying the full rate for every one of those months.
If your business never paid towards its connection, you had no discount to lose, but going over still costs you the full excess rate.
What Does This Mean for Your Business?
Going over your agreed capacity is an avoidable cost. If your half-hourly data shows regular excess charges, your agreed capacity may be too low for how your site really runs, or start-up loads could be spread out so they don’t all hit at once. If you’re nowhere near your limit, you could be paying for capacity you never use.
Either way, the answer is in your data, and that’s where we start.
How Black Sheep Utilities Can Help
- Check your peaks Our Half Hourly Meter Report sends your consumption to your inbox, so you can see when your site comes close to its limit.
- Check your charges Our bill validation checks each bill against your agreed rates and recorded consumption, and we take up any errors with your supplier for you.
- Compare prices We compare business electricity prices from suitable suppliers and present the options that best suit your business.
- Get the capacity right Our Energy Team will go through your data with you before you ask your network operator to change your agreed capacity, so you don’t cut too deep or pay for headroom you don’t need.
Frequently asked questions
What is DCP161?
It’s a change to the rules for electricity network charges that came in on 1 April 2016. It means excess capacity on a half-hourly site is charged at the full rate, without the connection discount some businesses get on their capacity charges.
What is an excess capacity charge?
It’s a charge for any power your site draws above its agreed capacity, measured in kVA. It shows on your bill in pence per kVA per day for the month you went over.
Does an excess capacity charge last for a whole year?
No. It’s only charged for the month in which your site went over its agreed capacity. DCP161 didn’t change that.
How can I avoid excess capacity charges?
Make sure your agreed capacity fits how your site really runs, and spread out big start-up loads where you can. Talk to our Energy Team and we’ll look at your half-hourly data with you.
See how much you could be saving
For more information
01273 914000To talk about your business energy, phone us on the number above, or request a quote and one of our energy experts will call you at a time that suits you.