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The Introduction of DCP161

DCP161 Will Cause An Increase In Excess Capacity Charges By DNOs Coming Into Effect April 2018

Businesses that are near capacity, as part of distribution charges on their half hourly supplies are at risk. In April, those businesses will be exposed to an increase in charges from the introduction of Excess Capacity Penalties (DCP161).

Ofgem is implementing the DCP161 to the Distribution Connection and Use of System Agreement (DUCSA). The intention of the DCP161 is to help the Distribution Network Operators (DNOs) recover costs when customers exceed their capacity.

Peter Pharoah, an Ecova Risk Consultant, noted that “businesses that are growing, especially in manufacturing, have other priorities. The implementation of this new measure may catch them off-guard. If not managed well, this could be costly. DCP161 looks to increase capacity penalties by over 50% in many cases.”

Ecova provides support in mitigating these cost increases as part of a balanced Risk Management Strategy. Your Risk Management plan will be built in a capacity review that is then balanced against the most appropriate contract for your business.

If you would like support in preparing and protecting your business from the risk of penalty download our Regulatory Update and Contact Us today.