Utility management specialist Orchard Energy has warned businesses that they face the prospect of paying significantly more for energy that exceeds their assigned capacity, following new measures to be introduced by Ofgem next year.
The government regulator’s DCP 161 measure is a change to the Distribution Connection and Use of System Agreement (DCUSA) and will introduce severe Excess Capacity Penalties for businesses that over-use their half-hour energy supplies.
The changes come into effect from April 2018, and are intended as a means of recuperating costs incurred by Distribution Network Operators (DNOs) when customers exceed their available capacity levels.
The changes represent a significant shift from current rules.
At the moment, any business that exceeds its allocated capacity is charged for usage at the usual rate, but those who do not increase their capacities in accordance with the new measures next April could face hefty financial penalties.
The excess penalty rate will be as much as three times the standard rate and costs will be higher in areas where demand for capacity is high.
Lucia Harney-Dey, associate director at Orchard Energy, said: “It is crucial that businesses and organisations understand the implications of Ofgem’s new measures, as there is a risk of severe financial penalties to those who don’t adapt.
“Orchard Energy can help businesses apply to change their assigned energy capacity before the measures come into effect, provide information about what the measures mean in practice for them and offer guidance through the process.
“The Energy Grid will be working to balance the network in the months ahead and we are advising businesses to move quickly to avoid issues further down the line.”
Orchard Energy specialises in energy purchasing, bureau services, energy solutions and water management for business across the UK.
Other services include, invoice validation, key account management, changes of tenancy, terminations and contract transfers; cost savings compliance and connection; as well as water drainage, such as leak detection.
Issued on behalf of Orchard Energy by Abigail Binns at Faith PR on 01484 509 901 or e-mail firstname.lastname@example.org.
- Orchard Energy, part of the Lakehouse Group, is a fast-growing utility management specialist operating across the UK.
- Orchard Energy has established purchasing power with the major energy and water providers; its independent status allows it to make recommendations solely for the benefit of its clients, delivering cost savings directly to the company in question.
- Orchard Energy is committed to providing customers with the highest standards of service and prides itself on operating with honesty and integrity.
- Orchard Energy has easily accessible offices placed across the UK, and provides its customers with dedicated account managers to ensure regular face-to-face contact.
- With headquarters in Elland, Yorkshire, it also has offices in Glasgow, Cardiff, Newcastle and Bristol.
- Orchard Energy specialises in energy purchasing, bureau services, energy solutions and water management for business across the UK. Services include, invoice validation, revenue recovery from inaccurate historic billing, key account management, changes of tenancy, terminations and contract transfers; cost savings compliance and connection; as well as water drainage, such as leak detection.
For more information on Orchard Energy go to www.orchardenergy.co.uk