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Ofgem sets 2018 default rates for exceeding available capacities

10 June 2016

A new measure is being introduced by Ofgem that will see those exceeding the assigned available capacity for half hourly supplies of electricity will pay increased charges from 2018.

Excess capacity penalties will be introduced to the Distribution Connection and Use of System Agreement (DCUSA) as part of the DCP 161 update.

This will take effect from 1 April 2018 to recover the costs incurred by distribution network operators when customers exceed available capacity levels.

At present, the supplier charges for the excess kVA used in the month of the breach, with no penalty.

The addition of penalty charges are designed to encourage users to review and increase capacity where required.

The excess charges may be as much as three times higher than the standard rate, according to Carbon2018.

Further information will be available when the applicable rates are published, which are expected to vary by region and voltage.

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