⚡ Are You Overpaying for Capacity Charges? Why It Pays to Review Your kVA Allocation

Many businesses with Half-Hourly meters are paying too much for unused capacity. Here’s how a simple kVA review could cut your costs — without changing supplier.

🧾 Quick Summary

If you have a Half-Hourly (HH) electricity meter, you’re likely paying a Capacity Charge based on your agreed kVA (kilovolt-amps).

It’s one of the most overlooked charges on business energy bills — and it can quietly cost you thousands each year, before you’ve even turned on a light.



Many businesses are unknowingly paying for more capacity than they use. The good news? We can help you fix this mid-contract, without touching your unit rate or standing charge.

⚙️ What Is a Capacity Charge?

Capacity charges apply to all Half-Hourly (HH) metered electricity users and are charged per kVA (kilovolt-amp) per day. They are set by your Distribution Network Operator (DNO), not your supplier, and reflect how much electrical capacity your site has been allocated on the grid.

These charges are:

• Fixed daily fees
• Multiplied by your agreed kVA
• Billed for the full year, regardless of whether you use the capacity or not
  

💸 Real Example: Overpaying in Plain Sight

Let’s say your business has:

• An agreed capacity of 290 kVA
• A capacity charge of 6.74p/kVA/day

That works out to:

🧮 290 x £0.0674 x 365 = £7,134.29/year



All paid just to have access to that level of power — regardless of actual usage.

🔍 How a kVA Review Saves Money

One of the services we offer is a kVA Review, where we assess your actual peak usage data from your HH meter and compare it to your agreed capacity.

Let’s say your true maximum demand is only 150 kVA.

We could help you:



• Reduce your kVA to a conservative 170 kVA
• Submit a request to your DNO to lower the agreed capacity
• Apply the savings mid-contract — no need to wait for renewal

💰 New cost:

170 x £0.0674 x 365 = £3,690.15/year

✅ That’s a saving of £3,444.14 per year — without changing supplier or negotiating a new deal.

⚠️ Why You Shouldn’t Slash It Too Far

While it’s tempting to cut capacity down to your exact usage, this can backfire.

If your business goes over the agreed kVA:

• You may be hit with excess capacity charges, which are significantly higher
• You may have to pay your DNO to increase your capacity again
• There may be delays or restrictions in getting a new capacity agreed quickly



Our approach is cautious but effective — we always leave you with a sensible buffer based on your site activity and future plans.

🧠 Final Thoughts

✅ If you’ve never reviewed your kVA allocation, now’s the time.
✅ It’s one of the few areas of your energy bill where you can make a change mid-contract and see an immediate saving.
✅ Many brokers skip this — but we don’t.

📣 Want Us to Review Your Capacity?

🎯 Send us your latest HH data or bill, and we’ll do a free kVA review. If there’s a saving to be made, we’ll help you apply it to your current contract — no switching needed.