Changes to DUoS Charges

Are you aware of the changes to Distribution Use of System charges (DUoS) due to take place from April 2018?

Ofgem have the responsibility of ensuring that the DNOs (Distribution Network Operators) charge customers in the correct way for connecting and using electricity distribution networks.

There are a number of changes to your distribution use of system (DUoS) charges coming from April 2018 that we wanted to make you aware of:

DCP161 – Excess Capacity Charges

What is changing?

Currently all half hourly customers are charged the same rate for exceeded capacity as they are for the standard available capacity. From April 2018 Ofgem will allow DNO’s to charge significantly higher rates to customers breaching their agreed capacity, users of the system could incur an excess capacity charge which could be as high as three times the charge levied for their agreed capacity. The excess capacity charge will be charged on a month by month basis, for the months in which the agreed capacity level was breached, its purpose is to recover the costs associated with any necessary network reinforcement from the parties responsible for causing the requirement.

How can we help?

LGE can help by providing a detailed report on how costs will change based on your maximum demand versus agreed capacity and can speak with DNO’s to increase your agreed capacity.

DCP228 – Revenue of CDCM

What is changing?

Currently, DUoS charges are separated into time bands with consumers charged higher rates during the ‘Red’ period in the late afternoon and early evening (typically 4-7pm). For half hourly customers, this is clearly marked on your invoices as a red band charge and for NHH consumers this is part of your day rate.

For most DNO areas the new changes are trying to spread the costs currently incurred in the red period more equally across the day.

For HH customers this means your red rates will drop slightly while amber and green rates will rise, and your overall costs should show a net increase.

For NHH customers, Ofgem have commented that single rate customers should see a slight decrease while two rate customers will see a small increase.

How can we help?

If you have any concerns please contact us, LGE can report on how your costs are likely to
change based on this year’s consumption.