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Changes to Excess Capacity Charges from April 2016
Source: Inprova Energy
Proposed changes to excess capacity charges could affect many businesses currently exceeding their Current Agreed Supply Capacity (ASC).
In addition to the contract you currently have with your energy supplier, you will also have an agreement with your distribution network operator to enable safe and adequate connection to the electricity network. The ASC forms part of your ‘Connection Agreement’ with the network operator and plans are in place to introduce Excess Capacity Charges from 1st April 2016. This would mean that any customer who exceeds their Authorised Supply Capacity level will be required to pay a charge higher than their ‘normal’ rate as per current arrangements.
The Authorised Supply Capacity relates to the highest maximum demand that a site can draw and by rights should not be exceeded. The introduction of these Excess Capacity Charges is an attempt at ensuring these agreed levels are not surpassed. This will be achieved through customers avoiding excess charges by keeping electricity demand below their current Authorised Supply Capacity or by re-declaring their required capacity at a higher level.
At energyTEAM, we are supporting clients in ensuring that their energy procurement contract arrangements fully meet their organisational and operational needs. If you are unsure about whether these changes may affect you, get in touch with your current energy broker/supplier to ensure that you are prepared for these charges.
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