Big connection, low usage? Ofgem isn't planning to cut "peaky" standing charges

Some businesses need a big electricity connection for short bursts, then sit quiet for most of the year. Since the grid charging changes of 2022 and 2023, many of them say their fixed daily charges feel out of all proportion to what they actually use.

There's a reason for that. The fixed part of your network charges is set by band. For sites with an agreed capacity, the band depends on the size of the connection, not how much electricity goes through it. Two sites with the same connection in the same region pay the same fixed charge, even if one uses a fraction of the other's power.

What Ofgem has said

A proposal called DCP 412, first raised by E.ON in October 2022, would have moved these "peaky" sites down one band. To qualify, a site would need to use close to its full capacity at times, but use little across the year (a load factor of 10% or less over 12 months).

On 16th October 2026, Ofgem said it is minded to reject it. It isn't convinced the change would help competition or reach the businesses struggling most, and the cost would simply move onto other users. It says the wider question will be looked at in its longer-term review of how system costs are shared out. Read Ofgem's consultation

What it means for you

If you were hoping for relief on fixed charges, don't build it into next year's budget. But there are still sensible things to do:

• Compare the agreed capacity on your bill (usually shown in kVA) with your actual peak over the last year. If you're paying for far more than you ever use, ask whether it can be reduced. Go carefully, because going over a lower limit brings extra charges, and getting capacity back later can cost money.
• See whether you can flatten your peaks, for example by staggering when big equipment starts up, or with a battery.
• If this affects you, tell Ofgem. It particularly wants evidence from affected businesses. Responses go to duos@ofgem.gov.uk by 11th December 2026, with the subject "DCP 412 Consultation Response".

If you'd like us to look over your bills and connection and tell you honestly whether there's anything to gain, get in touch. We'll show you the numbers, with no hard sell.