When it comes to the grid, energy is a finite resource. It’s easy to forget that power is limited when we are so accustomed to throwing a switch and our device or appliance turns on.
But for businesses, energy consumption is capped – go over your agreed limit and your distribution network operator (DNO) will hit you with surcharges. This is because most public and commercial buildings share a grid connection with their neighbours, and the DNO needs to ensure each building gets its fair share.
Your building’s share is set out in your contract, as your maximum import capacity (MIC). This is the upper limit on the total electrical demand you can place on the network. It is usually set to ensure that it meets the requirements of peak demand, with a little headroom for exceptional circumstances. Breach your MIC and you will incur excess capacity charges.