Major changes to DUoS (Distribution Use of System) charges are coming in April 2018. With the introduction of DCP228 we will see a noticeable red-green-amber zone cost shift and this will have a significant impact on energy bills for most business users.
DCP288 explained. DCP228 is a major change to the way in which customer tariffs are set under the Common Distribution Charging Methodology (CDCM). Approved by Ofgem in September 2016, DCP228 will come into effect in April 2018. The new regulation aims to scale charges more accurately, spreading distribution costs more equally throughout the day, thereby improving accuracy during peak and off-peak periods. In simple terms, DCP228 will impose a reduction in red zones while amber and green will see marked increases – leading to a flattening of the charging structure.
So what does all this mean for business users? When DCP 228 goes live, most business customers will see an inevitable rise in costs. And this goes for both HV (33kV connected) and LV (11kV connected) customers with HV customers likely to feel the effects of the changes the most.
For companies who have invested in load management, the benefits gained from reducing consumption during red zones will be lessened. As a result, they will need to adjust their strategies – critical to this will be a deeper understanding of energy consumption throughout the day. How much energy are you using? And when are you using it?
And this is where we can help. The Utilidex Hub enables you to visualise the £ Cost vs Consumption kwh for every half hour of every day. This simplifies the way consumers identify where improvements or changes can be made.