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Businesses using in excess of their allocated electricity supply capacity will start to see penalties in April 2018.
For years, businesses have been able to use in excess of their allocated supply capacity without any financial penalty. They would just be charged the same rate.
However from April 2018, those businesses which use in excess of their allocated capacity will be charged a higher rate for the additional demand.
The excess charges range from a 47% to 132% cost penalty.
For example, those businesses in the East Midlands region (area code 11) supplied via the Low Voltage network, will be charged 5.79p/kva per day for excess demand compared to their normal charge of 2.6p.
What you can do:
Check your electricity bills to see if you are charged for excess kva demand. If you are, that means you're using more than your allocated supply capacity, and come April 2018 this extra demand will be charged at the higher rate.
Contact us for a detailed analysis and to help you fix your allocated supply capacity at a more suitable level. This is free of charge.
Why it's important:
If your business consistently pulls in excess of your allocated kva, this is putting additional unexpected stress on the network, which in turn causes damage and means the network requires upgrading or fixing. The costs of this work goes into everyone's bill, increasing prices.
By penalising those customers that use in excess of their allocated kva, this will result in increased revenue and directly impact those customers causing the most damage.
Therefore we strongly recommend for any businesses using in excess of their allocated supply capacity to contact us, and we can help arrange for the capacity to be set at a more suitable level, helping you avoid additional charges.