Amendments are planned to the Distribution Use of System charges (DUoS) known as DCP228 and DCP161.
On 1st April 2018 the organisations that are responsible for the distribution of electricity also known as Distribution Network Operators (DNO’s) will implement two new policies. The main aim of these policies is to re-distribute charges associated with the distribution of electricity so that they are more reflective and accurate. This re-distribution will be achieved through DCP228 and DCP161. The impact of these changes will be felt mostly by low voltage (LV) and high voltage (HV) companies (companies can find out which voltage they are by looking at their connection agreement). Both changes could result in companies experiencing increased costs on their electricity bills.
DCP228 will see all time band rates increasing, with amber and green increasing the most. Based on our customers, we estimate that high voltage businesses could see an increase of around 65% on their unit rates during these time bands in comparison with their current consumption pattern and DUoS charges.
DCP161 will deal with the issue of companies going over their agreed capacity. With this modification DNO’s will now be able to apply severer penalties, in most cases companies that exceed their agreed amount will be charged double for it.