Client overview
In 2023, A R Driver & Son contracted a new meter connection following site development. The initial capacity requirements were overestimated, which resulted in unnecessarily high standing charges for the meter. The client sought advice on how to manage these charges while meeting the needs of the newly tenanted site.
The challenge
The Distribution Network Operator (DNO) required the initial capacity to remain unchanged for at least 12 months before any adjustments could be made. This policy meant the client had to commit to higher standing charges temporarily. Once the site was occupied, they needed guidance on whether a reduction in capacity would be feasible and how this could impact their ongoing energy costs.
Our solution
We worked closely with A R Driver & Son to review the site’s actual energy usage and determine an appropriate capacity level:
Monitoring energy usage: We consulted with the client multiple times during the initial contract term to monitor capacity figures as the site became operational.
Reducing capacity: Once the usage data confirmed that the original capacity was overestimated, we advised reducing the capacity to a more suitable level.
Impact on standing charges: This reduction directly lowered the standing charges associated with the meter, making the site’s energy costs more aligned with its operational needs.
The impact
The capacity adjustment had a direct and measurable effect on the client’s energy costs:
Standing charge reduction: The adjustment led to a 49.8% decrease in standing charges, making a substantial difference to the site’s running costs.
Right-sized capacity: The meter’s capacity now reflects the actual requirements of the site, avoiding unnecessary costs.
Enhanced flexibility: The client now benefits from a more manageable and cost-effective setup.
Client feedback
“Gavin has given us invaluable advice to help reduce our electricity costs as a small farming business. We approached the CLA to enquire into energy suppliers, having just installed a new electricity connection to the farm. And through the CLA, Gavin has helped highlight areas where we can seriously reduce our electricity bills, and ensure that we are on the right contracts for our needs. We just wish we had asked them for advice earlier in the project. Thanks to Gavin for keeping us well informed, taking the hassle out of signing up for new contracts, and for saving us money.”
Interested in learning more?
If your business is looking to optimise energy costs, call us on 0808 164 6151 or email energyservices@cla.org.uk for expert advice.
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