Industry updates you need to know
Starting on the 1st April 2018, there will be a few important energy industry changes coming into effect. With only a few months to go, now is the time to take action.
Introduced by Ofgem, DCP161 is coming into force to ensure that any half-hourly (HH) meter is billed fairly and correctly for its available capacity (kVA). Each HH meter across the UK has an agreed kVA level with the local distribution network and is charged at a rate which has been agreed within the supply contract. Currently there is no penalty for exceeding the agreed level of kVA and any kVA used over the agreed amount is charged at the contracted price.
However, starting 1st April, DCP161 will ensure that HH electricity supplies that exceed their available capacity pay significantly more.
The purpose behind this new legislation is for the excess capacity penalties being enforced to assist the Distribution Network Operators (DNO) with balancing out network usage. The legislation will help encourage customers to manage their load more diligently or to request the correct level of capacity upfront.
Introduced by Ofgem, DCP228 will alter the way in which electricity distribution charges are calculated and the way business properties are billed. Distribution charges currently account for up to 19% of your bill.
DCP228 aims to accurately reflect the distribution costs incurred by network operators during peak and non-peak periods. As of 1st April, charges during Red Band periods will be lowered and raised during Amber and Green. This will essentially flatten the charging structure, creating more of a balance across the bands.
For many half-hourly businesses, DCP 228 will mean a rise in energy costs. However those with a high use at peak times may see a small decrease on their bills. The level of impact will be based on your region and DNO.
Minimum Energy Efficiency Standards (MEES) is a set of legal requirements that aim to improve the energy efficiency of commercially-rented properties across England and Wales.
Commencing 1st April, MEES will make it unlawful to agree a new lease for a commercial property with an Energy Performance Certificate (EPC) rating of F or G. This will also apply to all existing tenancies on 1st April 2020, and then 1st April 2023 for all privately rented property.
MEES will apply to most properties. However, properties that do not require an EPC under current regulations (e.g. Listed buildings) will not be required to meet MEES. In addition to this, MEES does not apply to short lettings (six months or less) and lettings that are over 99 years.
If you require further information regarding the forthcoming legislation mentioned in this article simply call STC Energy – Part of the Inspired Energy Group on 0208 466 2900 or email us via [email protected].
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