Half Hourly capacity charges

Half hourly capacity charges – an introduction

Capacity charges are for reserved energy. It is charged by the Distribution Network Operator (DNO) for reserving capacity on the electricity network for your business demands. The Capacity charge is measured in KVA, and (confusingly) is also known as the Availability charge.

It is generally shown on your bill either as a Capacity charge, or Supply Availability charge.

The KVA will vary between sites, dependent on your power requirements. Smaller sites might have a KVA of 25 or 50 for example, while larger sites may have a KVA of 275 or higher.

The Capacity charge is billed monthly and will be in pence per KVA per day. For example, if your KVA is 75, your Capacity charge per month could be:

2.38p x 75 (KVA) x 30 (days) = £53.55

Some suppliers will show this as a monthly price instead of daily:

71.4p x 75 = £53.55

Check your Capacity charge is correct

If your site is using considerably less than the contracted capacity level reserved for you, substantial savings can be made. In the above example, an actual capacity of 25 KVA would result in a monthly charge of £17.85.

However, there are cost implications if you don’t get this correct, and you could be penalised if you use more than your allocated capacity.

What are Excess Capacity charges

By using more than your agreed Capacity, you will be putting a strain on the electricity network, so it is important to get the KVA correct. Up until April 2018, excess use was charged at the same rate as your agreed Capacity.

Since April 2018, the Distribution Change Proposal (DCP) 161 means that excess use will be charged at a higher rate. Your supplier is penalised by the DNO for using more power than agreed, and these penalties will be passed onto you in the form of an Excess Capacity charge. These can be 2-3 times the usual cost.

If you see an Excess Capacity charge on your electricity bill, call us on 020 3372 65167 and we can resolve it for you.

It is a good idea to give yourself a little cushion when calculating your KVA, rather than incur higher costs in excess capacity charges thanks to DCP 161. Again, we can advise on this.

For any further advice or for Half Hourly meter prices, please call our small and friendly team on 020 3372 6517.