Essential guide to reducing your Supply Capacity costs
Read our easy to understand guide and find out how you could reduce the amount you are paying for your Supply Capacity.
What is Supply Capacity?
- The amount of electricity that your Distribution Network Operator (DNO) must provide to your Supply at all times.
- Sometimes referred to as the Agreed Supply Capacity or Authorised Supply Capacity, is measured in kVA and charged monthly for Half Hourly Supplies.
- You are charged for reserved energy, whether you have reached your Available Supply Capacity or not. Alternative charges are applied to your bill if you exceed your set Available Supply Capacity.
Where can I find Supply Capacity on my bill?
This non-commodity charge can be found under the Distribution section of your electricity bill.
How Supply Capacity Works
Moving to a new site
You could be paying for Supply Capacity that you are not using if you have moved into a new site where the charge was not set by the previous occupant. The charge would have been automatically carried over to your Supplier Agreement, even if there has been a change of Supplier.
Impact of energy saving initiatives
Additional energy saving measures could mean your demand on the electricity network may have dropped and reduce how much capacity you require. Anything from switching off lights to installing more efficient servers can reduce your demand on the System. Your kWh usage will reduce, but your Available Supply Capacity will not. You must take action and talk to your DNO to change your Supply Capacity to a level which accurately reflects your needs.
Exceeding your Available Supply Capacity
You may be charged for exceeding your Available Supply Capacity if you have expanded a site’s function without asking for the Available Supply Capacity to be increased. These penalties are referred to as ‘Excess Capacity’ charges and can rack up significantly over time.
What you also need to know
Your Available Supply Capacity can only be changed once a year and the DNO can reject a request to increase it if it has a knock on effect to other Supplies in your area. This means that all changes are not without risk and need to be considered carefully.
How we can help you
If you would like more support managing your Supply Capacity, especially if you have multiple sites, our expert Invoice Management team can analyse all your Supplies and recommend where Available Supply Capacities can be changed to make savings for your organisation. As part of the service, our analysts would work directly with each relevant DNO, providing you with a complete end to end solution.
To find out more how we can help you make savings on your energy bill contact us today.
Cost Reporting comes free with Stark ID and allows you to visualise your Available Supply Capacity and determine whether it needs to be corrected. Our easy to understand reports enable you to easily determine which Supplies provide the largest opportunities to make savings. Contact us today for a demo.