DUoS Red Band Charges – Your essential guide
Managing Distribution Use of System (DUoS) charges is a highly effective way to make savings on your electricity bill. Our essential guide explains all.
What Makes up your Distribution Charges?
As part of your bill, you will be paying towards the operation and maintenance of the UK’s Distribution Network. These Distribution Use of System (DUoS) costs are made up of several different charges; time-based charges separated into Red, Amber and Green (RAG) rates, your Supply Capacity charges and often a standing charge.
The importance of DUoS Red Band charges
If you are on a pass-through contract, there are times of day when prices are inflated. These times are defined as being in the Red Band. The rest of the day is split into the Amber and Green Bands which have a much lower rate.
The Red Band is designed to increase costs at peak times and encourage consumers to shift load. These rates are on average 50 times more expensive than Amber and 450 times more expensive than the Green Band rates.
By visualising these significant variations in cost throughout the day you can identify the activities that cost you the most. This reveals opportunities to shift load and achieve the cost benefit from doing so.
How our Red Band reporting will help you
Depending on your location and Distribution Network Operator (DNO), your Red Band charges will differ, both in how expensive the rate is and when during the day this charge falls.
All of these rates and times are stored in Stark ID allowing us to report on your specific distribution charges for every meter.
With our new Red Band reports you can:
- Evaluate the trend in your Red Band charges across your portfolio or at individual sites to determine how you are currently performing
- Rank your sites based on the total Red Band costs during the last year, month or even day
- Compare the days with highest and lowest Red Band costs at individual sites to determine what you could be saving by shifting load
- Set targets and actively monitor your Red Band costs to alert you when your costs higher than expected
Two more reasons to shift load during the Red Band:
✔ Your transmission charges are also designed to make electricity more expensive when demand in the UK peaks. Triads almost always occur during the Red Band regardless of your DNO. By shifting load away from this time period, you could be targeting two non-commodity costs at once. This strategy is particularly intelligent with Triads becoming harder to predict.
✔ Even if you are on a bundled tariff, by reducing demand during peak times you could potentially negotiate a lower supply charge.
Our Red Band DUoS Reports are the included as part of our Cost Reporting tool. To find out more sign into Stark ID or contact us today.