Cost Reduction Method: Capacity Review

The Agreed Supply Capacity (ASC) is the agreed maximum supply capacity, measured in kVA, that any HH customer is allowed to take from the distribution system through their connection point. 

Customers pay for each kVa of ASC whether used or not, month in, month out. It is a good idea to review kVa needs on an annual basis, or more frequently, if major changes to equipment or routines are made.

"kVa analysis can identify if your ASC is greater or less than your kVa Maximum Demand figure.

SCENARIO 1 - kVa MD is less than Agreed Supply Capacity

*Graph shows Agreed Capacity 215 kVa and Maximum Demand 55 kVA. Cost is calculated per kVa per day with the given available capacity charge.

Example: Availability charge 3.2945 p/kVA/day

Annual Cost 215*3.2954p*365 = ￡2586.07

Scope for savings: reduction of set capacity to 70

Annual Cost 70*3.2954*365= ￡841.97

Savings potential ￡1744.10 annually

SCENARIO 2 - kVa MD is higher than Agreed Supply Capacity

Graph shows Agreed Capacity 150 kVa and Maximum Demand 185 kVA. Cost is calculated per kVa per day with the given available capacity charge. Depending on who is DNO for given meter, any breach of excess capacity will be charged per unit of kVa breached.

Example: Distribution Network Area: South Wales

Excess Capacity Charge 6.9037 p/kVA/day

Breach of 35 kVa would be applied for the period in which breaches have occurred.

A simple review of set capacity can help identify ASC is greater or less than your kVa Maximum Demand figure and result in significant annual savings, depending on size of the meter, consumption patterns and level of ASC.

Get in touch for more details via [email protected] or call 02039945773

www.alfaenergygroup.com