Costly Updates to Energy Bills this April are No Joke

Posted on Tuesday 3rd April, 2018 by

calculations

In April there will be some major changes coming into play in the energy industry. Whether affected by all or just one, businesses could see a significant cost impact.

As of 1 April 2018 new Minimum Energy Efficiency Standards, better known as MEES, will come into force with strict penalties put in place for non-compliance, and fines could reach up to £150,000.

The introduction of DCP161 and a regulatory change, DCP 228, will bring price increases to businesses. These two charges are set to further increase the already spiralling non-commodity cost (NCC) element of your energy bill.

Why are energy bills increasing?

Energy bills are set to rise again, as changes to distribution charges will take effect in April.

The introduction of DCP161 and a regulatory change, DCP228, will bring price increases to businesses:

  • DCP161 has been introduced by Ofgem. Its purpose is to ensure that businesses with half hourly (HH) supplies that exceed their assigned available capacity, pay more. DCP228 will revise how DUoS
  • (Distribution Use of System) charges are calculated, so they accurately reflect the costs incurred by network operators during peak and non-peak periods.

These two charges are set to further increase the already spiralling non-commodity cost (NCC) element of energy bills, which is a mix of transmission, distribution, and other regulated charges paid on top of the wholesale cost of energy.

In less than three years’ time, these extra charges will account for the largest portion of energy bills at 66%.

Comments are closed.