DUOS charges – all you need to know about DCP 228

DUOS charges – all you need to know about DCP 228

To improve cost transparency, consumers will soon be seeing a notable change in electricity distribution costs. At present, there is a very large difference between the charges for the late afternoon and those costs for the rest of the day. However, in a few years this may no longer be the case.

Currently, the way electricity distribution companies calculate costs brings higher charges for half-hourly (HH) consumers during late afternoon. These Distribution Use of System costs (DUoS charges) occur in the so-called ‘Red Band’. For non-half hourly (NHH) metered customers, this contributes to the higher Day rate. However, this does not provide the correct investment signals for distribution companies. Costs need to be spread more equally across the day.

This suggested change has led to modification DCP 228, which Ofgem has confirmed will go live from April 2018.

DUoS charges

Red Band DUoS charges

For HH and P272 consumers this modification will lower Red Band and Day rate charges, while increasing the prices in the Amber, Green and Night rate bands.

An impact assessment released by Ofgem commented, “domestic and non-domestic ‘single rate’ consumers would generally face a reduction in charges”. At the same time, “two rate (Day/Night rate) consumers would face a small increase in charges” and, “the net effect is that charges for HH consumers in aggregate will rise.”

Take control of your energy costs

These changes will increase the need to understand and control when you use energy and how much. There will be a stronger need for a connected, controls-based strategy, as the costs of delivery shift. This will allow equipment to automatically shift operation according to tariff movements, rather than in a static system.

A great way to manage these costs is through Internet of Things (IoT) enabled Building Management Systems (BMS) and controls. Our solution, Intelligent Building Controls, can help you visualise and gain valuable insight into your energy consumption. Using Intelligent Building Controls you can implement, amend and manage control strategies with a touch of a button – make shifting or reducing your energy consumption during more expensive time bands easy to manage, helping you to reduce your costs.

To find out more about Utilitywise Intelligent Building Controls visit our website, call 01527 511 757, or email corporate@utilitywise.com

Intelligent Building Controls IOT

We can help you budget for future energy costs

To further help you plan ahead and budget for future costs we can provide our Long-term Price Forecast Report. This report is a valuable tool which illustrates the annual projected increases to your energy bills and calculates your energy spend for the next 5 years. This allows you to confidently forward budget and avoid any nasty surprises.

Find out more here.

Paul Anderson

Posted by on Wednesday, the 16. November at 17.05

Paul Anderson joined Utilitywise in 2000 as a member of the Market Intelligence team. As a Senior Analyst, Paul is responsible for the production of bespoke strategic consultancy projects as well as developing analytical models. This has included a market-leading Triad forecasting model and a fully inclusive delivered energy pricing forecast tool. Paul has an Honours degree in Film and English from the University of Kent.