AVAILABLE SUPPLY CAPACITY ASSESSMENT

There are fourteen distribution companies or Distribution Network Operators (DNO's) which transport energy to the consumer via a national and local network. Electricity distribution costs UK consumers £2 billion annually and makes up 25-30 percent of an electricity bill. The DNO's charge the supplier for distributing the electricity, who then pass on the charges to the customer. These charges are explained below.

The Authorised Supply Capacity (ASC), also known as the Availability level is the amount of electricity that the distribution company makes available for a business. This Authorised Supply Capacity is measured in Kilo Volt Amperes (kVa) and charged on a monthly basis. If a business consumes more electricity than its Authorised Supply Capacity there will be an excess capacity charge. This is charged at least three times the normal kVa rate.

A site's usage of its Authorised Supply Capacity is determined every month by means of a Highest Maximum Demand (HMD). This Highest Maximum Demand is based on the type of metering available at the site. For sites where single-channel metering is in use, the kW value will be used instead of the kVa. For multi-channel metered sites the kVa HMD is reached by applying a standard formula to the kW and leading and lagging data-flows for each half hour in the month. The formula to calculate the HMD is as follows:

On the basis of the above, a site can therefore reduce the total spend on electricity by contracting to an optimum level. This level ensures that there is no wastage through over capacity or excess charges through exceeding the Authorised Available Capacity.

Have a look at your electricity bills to find if there are any opportunities to make savings. MGI Group are experienced in setting optimal ASC levels. Call us on 01767-641-163 or fax us your latest bill on 01767-641-649 to see if we can help your organisation.