For advanced Half-Hourly (HH) electricity supplies, the MIC level defines the maximum power which can be demanded within a 1 hour period. For example, if your capacity level is set at 300 kVA, and assuming a power factor of 1.1 just in case, your Maximum Demand (MD) should not exceed 272 kW within any hour period.

Directly, there is a capacity level charge which recovers the cost for Distribution (DUoS). This is a pass through charge to your local District Network Operator (DNO) to manage the local distribution system. Indirectly, there is a Residual Charge which recovers the cost for Transmission (TNUoS). This is a pass through charge, usually incorporated within your standing charge, to the National Energy System Operator (NESO) to manage the infrastructure costs of installing and maintaining the transmission system between power generation and the local distribution zones.

The Distribution (DUoS) capacity charges are usually shown as a separate line within the energy bills. The Transmission (TNUoS) charges are usually incorporated within the standing charges.

Both the Distribution (DUoS) and Transmission (TNUoS) costs are expected to rise considerably over the next 5 years and they are already expensive. By checking your historical Maximum Demand (MD) in detail, you can determine whether you can agree a lower capacity level with your local DNO and bring down these costs.

Subject to compliance for each case, Energunite can access complete historical Half-Hourly (HH) data for any advanced HH electricity supply within the UK through ElectraLink. Our EnergyBucket software enables us to generate detailed reports at speed. Please visit here for more information.

Typically our capacity level reports review the historical 52,560 Half-Hourly (HH) data points over the last 3 years for your supply and reports your supply Maximum Demands (MDs) in detail. This informs the reader of whether their Maximum Import Capacity (MIC) levels can be brought down to save them money.

It is important not to lower your Maximum Import Capacity (MIC) level to below your Maximum Demand (MD) as there may be expensive penalty charges in future. One must carefully consider all future plans to increase electricity demand from the supply and factor these in before completing a capacity level reduction exercise.

It will not be easy to increase your Maximum Import Capacity (MIC) level again in future to to upcoming high demand expected. Once your capacity level is reduced, it will be released back into the network for others to use. Customers will likely have to pay to have extra capacity provided again. It is important for Customers to confirm they do not have any plans in future to increase their demand over their agreed new MIC level.

We have not yet experienced such an event since our process involves reviewing historical usage and customers confirming if they have any future plans before any such reductions take place. However we have heard it can cost tens of thousands of pounds upfront for a customer to contribute to a new substation cost in order to be entitled for extra capacity through a new connections agreement with their local District Network Operator (DNO).

Whether the pass-through Transmission (TNUoS) charge is reduced currently depends on whether your MIC level has dropped by 50% or more and you have moved to a lower Residual Charge band category. If both these cases are satisfied, then the TNUoS pass-through charges will fall immediately. However customers who have agreed a fully fixed supply contract with their supplier will need to wait for their next supply contract to be negotiated to experience the savings.