What is the Agreed Supply Capacity?

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on whatsapp
Share on email

There are a lot of challenges for running a business. It can cause a lot of headaches for the business owner, especially the expenses and costs. If you look at most organisations and companies today, you can see a heavy reliance on energy. This takes up an immense bulk of your bills if you’re not careful. That’s also the reason energy management is one of your priorities.

If you want to lessen your expenses and avoid overheads and running costs, you need to be vigilant about your energy bills. This is crucial for those who deal with operating heavy machinery and equipment. These things are the major factors that increase your electricity and gas bills into thousands per year.

For these reasons, avoid just opening and paying your bills without question. This mindset could cost you without your knowledge. To help you out with decreasing your costs, know all about Agreed Supply Capacity.   

What is the Agreed Supply Capacity?

The Agreed Supply Capacity, or ASC for short, is how much electricity your Distribution Network Operator or DNO must provide to your supply at all times. DNOs are those companies licensed to distribute electricity in the United Kingdom. There are six of them that operate across the country. Other terms for ASC that you should know are Supply Capacity or Authorised Supply Capacity. 

If you want to measure the ASC for your energy management, you need to measure it in Kilo-volt-amperes. You can see it charged as a non-commodity charge for Half Hourly Supplies per month. You can check out your ASC under the Distribution use of System section of your electricity bills. This will help you look at your total distribution charge and a breakdown of the amount that ASC is contributing to the cost.  

What are the reasons your payment is high because of your ASC?

You need to know and understand how Agreed Supply Capacity charging works. This is because it will help you determine whether there is overcharging regarding your electricity usage. In simpler terms, there is a charging of reserved energy for your premises regardless of using up your quota or not.

This is important for your energy management because you’ll know how to aim as close to your actual energy usage as possible. You don’t want to be paying for a large supply capacity when your company is being economical with your energy usage. 

Another instance would be when you moved your business to new premises you could pay for ASC you are not even using. This is because the previous occupant possibly has set the charge. Here, there would be a carrying of the charge automatically to your Supplier Agreement. This is possible even if you changed your supplier. 

An example of this situation would be when the previous tenants worked with heavy machinery that could take up energy for 12 hours every day of the week. In this scenario, you need to check your ASC and coincide it with the energy usage you will be actually using. This is great for energy management and efficiency.

Take note that despite practising energy-saving measures such as turning off lights, the details of your contract’s ASC may undermine your efforts. In these instances, you need to get in touch with your DNO to switch to an ASC that is suitable for your company. 

What are the charges you get when you go over your ASC?

Although you underutilise your ASC, charging will still be a lot. Aside from that, you must pay hefty surcharges in the instances you exceed your allowance. You also have the “Excess Capacity.” These are the charges you often get when you expand your business activities on site without requesting an increase in your ASC. Don’t forget to look carefully over your contract so you won’t rack up a significant amount of cost. This is essential since you only have one chance in a year to change your ASC. Your DNO can even reject your request if there is a possibility that increasing your ASC will affect other Suppliers in your area. 

Maintain Your Energy Management with EnergyBillKill

Energy management is no easy feat, which is why you need to get all the help that you can get. By just checking your energy bills, you’ll be able to do so much. If you understand your ASC, for instance, it can help you determine your actual energy usage. So, there won’t be any worry of overcharging expenses that you don’t even use.

If you need help with controlling your energy costs or switching to a new supplier, come check us out at EnergyBillKill. We can help you get the best results for your energy audit by assisting you in finding the right supplier. The process will take a few minutes, and you’ll switch with your preferred supplier in no time. Check out our website here so you’ll know more about our services!

More to explore