What is DCP268?
Businesses with small non-half hourly electricity meters which require manual reads to ensure accurate billing may see a change in how these meters are invoiced from April 2021.
One policy which has been under the radar through 2020 and will affect most UK businesses is a policy called DP268. If your business has a small non-half hourly electricity meter with an MPAN number which begins with S03 or S04 in your portfolio then your business will be impacted by policy DCP268.
From April 2021 these electricity supplies will have chargeable intra-day time bandings similar to half hourly electricity meters.
Why?
As the UK moves towards a more complex, flexible and smarter electricity generation network there is a need to more accurately measure how, when and where electricity is consumed by businesses throughout the day. Ofgem want to ensure the cost of businesses using the network is distributed accurately and fairly.
Distribution charges change through the day with red being the most expensive when demand is highest and green being cheapest when demand is lowest, as summarised below.
How does DCP268 affect me?
For businesses with half hourly meters nothing will change, it is easy for distribution charges to be applied correctly due to the granularity and accuracy of the half hourly data generated at the meters.
For small electricity meters which require manual readings to be sent to suppliers (non-half hourly meters) there is no granularity of intra-day data meaning peak and non-peak distribution charges cannot be charged accurately and have to be estimated.
For example, a 24/7 manufacturing business will consume electricity consistently all day, a hotel will most likely see a low usage through the night with a spike in electricity in the evening when guests are in their room and using hotel facilities. Without the half hourly data being produced through the day distribution costs cannot be applied accurately to reflect the different usage profiles.
The implementation of DCP268 will ensure distribution charges are apportioned more accurately but will likely see a small increase to most businesses. Upgrading your NHH meters to AMR of half hourly is recommended to ensure you are billed accurately and have visibility of intraday usage to identify cost saving opportunities.
Please contact hello@gleg.co.uk for further information on DCP268.