Capacity Charges
Capacity Charges for Half Hourly Meters
Authorised Service Capacity
Before a site is connected to the Distribution Network, a capacity needs to be agreed between the site occupier and the Distribution Network Operator (DNO). You will then be charged accordingly in kilo-Volt Amperes (kVA).
If your business has a Half Hourly electricity supply with a Current Transformer (CT) meter you will have a Capacity charge on your electricity bills. These charges are set by your Distribution Network Operator (DNO) and are based on the agreed Capacity for your site. These charges are added to your energy bill and are paid by your energy supplier to your DNO. They are also known as the Available Supply charge, or Supply Capacity.
Your Capacity is the power reserved from the network that guarantees a designated volume of power to your Half Hourly supply.
This is different to your consumption level and relates instead to your maximum demand. Availability is measured in Kilovolt Amps (1,000 volt amps). If you had ten electric motors rated at 10 Kw this would equate to 100kVa and you would apply for approximately 110 kVa site availability.
How do I establish the correct Capacity level?
You will need to take an inventory of all the electrical equipment to be installed on your site and evaluate the rating of each component. Adding these together will provide you your notional Maximum Demand. After your site has been in operation for 12 months you will be able to identify your peak demand. Your Authorised Service Capacity should be set just above this level.
Cutting your capacity costs
Your DNO will allow you to apply for a reduction in capacity once a year under one of two circumstances.
Firstly, if you are using significantly less than your agreed Supply Capacity your DNO will lower it to a level more reflective of your actual demand levels. *
Secondly, if you are exceeding your agreed Capacity, then you can apply for an increase to a more appropriate level. which will avoid Excess Capacity charges.
* Note: Before agreeing a drop in capacity for your business you should be entirely sure that you will not require a subsequent increase. It is much easier to give up than obtain it.
We can carry out a capacity analysis on your behalf and engage with your DNO to lower or reduce it.
Capacity Charges
Capacity charges vary according to location in the UK. They run from 70 pence to more than £1.50 per kVa.
Capacity/availability is charged per kVa per month either on a pence per kVa per day, or a £s per kVa per month.
These charges can be costly. Businesses with 400 kVa and a charge of £1 per kVa will be paying £400 per month regardless of how much electricity is consumed or the maximum demand.
Be aware!
Your Authorised Capacity may have been agreed a long time ago and no longer reflects the needs of your business. You could find yourself with the level set too high, or too low. In either circumstance, you will be charged more than necessary.
If your agreed capacity is set too high, then you will end up paying for something you don’t need and you will be wasting money.
Excess Capacity charges, What can I do now to avoid paying them?
Following the introduction of DCP161 in 2018 you’ll be charged as soon as you exceed supply. This will only become apparent once you receive your next electricity bill. If you’re not sure whether you’re currently on a half-hourly meter, we can check this for you. If you’re in the process of moving to a half-hourly meter your capacity may be set automatically at the incorrect level. You should review your contracted capacity across your business to make sure that your Maximum Demand matches your Authorised Service Capacity.
Additional analysis to determine how regularly you breach your contracted capacity can also influence whether you manage energy better at site or start the process to increase your capacity with your DNO.
If you are receiving continual Excess Capacity Charges on your electricity bill, call us on 01252 338777 and we will resolve this for you.
How can I establish my correct Capacity?
Setting the right kVa is important
If your kVa is set too high, then you are paying more than you need. Every business with capacity charges should carry out regular analysis of their Maximum Demand to ensure it is set at the correct level.
Conversely, if it is set too low you will pay Excess Capacity charges. These charges are on average 73% higher than your normal rate and over a long period can mount significantly. We frequently find businesses with Excess Capacity charges.
Do you want to carry out a review of your current maximum demand and ensure that your it is set at the appropriate level and matches your needs?
Where can I find my Allocated Site Capacity
How can we help you with your Capacity Charges?
Example of a Capacity Analysis
Meter Operator charges (MOP), Data Collection charges (DC/DA) and Capacity Charges are all chargeable costs for half hourly meters.
Are you getting the best prices for these services?