Can we increase capacity again easily in the future?

It will not be easy to increase capacity again in future due to upcoming high demand expected. Once your capacity level is reduced, it will be released back into the network for others to use. Customers will likely have to pay to have extra capacity provided again. It is important for Customers to confirm they do not have any plans in future to increase their demand over their agreed new maximum import capacity level.

What will it cost to increase capacity again?

We have not yet experienced such an event since our process involves reviewing historical usage & Customers confirming if they have any future plans before any such reductions take place. However we have heard it can cost tens of thousands of pounds upfront for a Customer to contribute to a new substation cost in order to be entitled for extra capacity through a new connections agreement with their District Network Operator (DNO).

Does the standing charge fall in line with the reduction in capacity?

Yes it does but there are two points to note here. Firstly, the Distribution & Transmission pass through fixed charges within standing charge is based on your Residual Charging Band and so your capacity level needs to drop sufficiently to move to a lower Band which is based on capacity level thresholds. Secondly, the standing charge will fall from the start of your next supply contract renewal date rather than the date your available capacity level is agreed to be reduced.

If the lower capacity were to be exceeded, is there a penalty fee payable or is it a hard stop and you can’t exceed?

There is no hard stop at present. If you exceed your capacity level, there is an ‘Exceeded Capacity Charge’ which you pay per unit you go over (i.e. a penalty charge). However, the Exceeded Capacity Charge is currently the same value as the Agreed Capacity Charge and so there is no real penalty at present. However this can change at any point.