ENERGY MANAGEMENT > KVA REVIEWS

KVA Review and Capacity Optimisation

Reduce excess capacity charges, lower standing charges, and make sure your electricity supply matches real business demand.

What Is a kVA Review?

A kVA review assesses whether your agreed electricity supply capacity still matches how your business operates today.

Your agreed capacity is measured in kVA, or kilovolt amperes. It sets the maximum amount of electricity your site can draw from the grid at any one time and forms part of your fixed electricity costs.

If your kVA is set too high, you could be paying for capacity your business does not need.

Why kVA Matters for Business Energy Costs

Capacity charges are one of the most overlooked areas of a business electricity bill.

Your agreed kVA directly influences your standing charges. The higher your agreed capacity, the more you may pay for access to that level of electricity supply, whether you use it or not.

For businesses with half-hourly meters, larger sites, or multiple locations, even small adjustments to agreed capacity can create meaningful savings over time.

How a kVA Review Works

A kVA review compares your actual electricity demand against your agreed supply capacity using half-hourly consumption data.

This helps identify whether your current capacity is:

  • Higher than required
  • Too close to your maximum demand
  • Suitable for your current operations
  • Creating unnecessary fixed charges

The aim is to find the right balance between cost reduction and operational security.

Why Capacity Is Often Overlooked

Once agreed capacity is set, it is rarely reviewed.

But businesses change. Equipment is replaced, operations shift, sites expand or reduce activity, and energy efficiency improvements are made.

Without regular review, your kVA can quickly become outdated.

What Happens If Your kVA Is Too High?

If your agreed capacity is higher than your site needs, you may be paying more than necessary through inflated fixed charges.

A kVA review can identify excess headroom and highlight opportunities to reduce capacity safely.

This can help lower capacity charges and may also support a lower Targeted Charging Review band, which is a key driver of standing charges for many businesses.

What Happens If Your kVA Is Too Low?

Reducing capacity too far can create risk.

If your site exceeds its agreed capacity, you may face excess capacity charges and potential supply issues.

That is why a kVA review should be based on accurate usage data, not guesswork.

Why Now Is the Right Time to Review Your kVA

With RIIO-3 running from 1 April 2026 to 31 March 2031, network costs and standing charges are under increased pressure across the UK energy market. Ofgem has confirmed RIIO-3 as the next price control period, covering major network investment and future energy infrastructure.

For businesses, this makes it even more important to check that fixed electricity charges are aligned with real operational demand.

Benefits of a kVA Review

A kVA review can help your business:

  • Reduce unnecessary electricity costs
  • Lower excess capacity charges
  • Improve visibility of fixed energy charges
  • Avoid paying for unused headroom
  • Maintain enough capacity for operational needs
  • Support smarter energy management across one or multiple sites

kVA Review Support from Flame Energy

At Flame Energy, we help businesses assess and optimise their agreed electricity capacity using detailed consumption data.

Our team reviews your half-hourly usage, identifies whether your kVA is correctly set, and highlights opportunities to reduce avoidable costs without affecting day-to-day operations.

If your agreed capacity has not been reviewed recently, there may be an opportunity to reduce your electricity costs.

Review Your kVA Today

Make sure your business is not paying for electricity capacity it does not need.

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Frequently Asked Questions

What does kVA stand for?

kVA stands for Kilovolt-ampere. A KVA is 1000 volt-amperes (amps).

What is kVA analysis?

kVA analysis is to help your business to understand your kVA allowance and usage. This is to ensure that your Kva stays at the right level.

How do you find kVA?

Your kVA is usually on your bill, if not you can contact your distribution network operator.

What is kVA capacity?

This is the level of reserved power for your site that you can use without any additional charges.

Who sets kVA?

The kVA would have been agreed between site user and the distribution network operator (DNO) but the DNO officially sets it.

What is kVA demand charge?

If usage exceeds the agreed kVA capacity amount you will receive a charge for each kVA over the capacity.

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