Capacity Charges

When larger electricity supplies are connected, customers agree a maximum import capacity (MIC) with their network operator - the maximum power in kilovolt-amperes (kVA) they'll draw at any point. The capacity charge is a daily fee based on this agreed level, regardless of whether you actually use that much power.

How capacity charges work:

• Measured in kVA (kilovolt-amperes)
• Charged daily: pence per kVA per day
• Must be formally agreed with the DNO
• Determines which capacity band you fall into (B1-B4 under CDCM)

Exceeded capacity: If your actual demand exceeds your agreed capacity, you'll pay exceeded capacity charges at penalty rates - typically much higher than the standard capacity rate. This incentivises customers to either request appropriate capacity upfront or manage their usage to stay within limits.

Cost optimisation: For many businesses, reviewing agreed capacity is worthwhile. If your operations have changed and you consistently use far less than your agreed capacity, you might be able to reduce it and save money. Conversely, if you regularly exceed your limit, it may be cheaper to formally increase your agreed capacity than continue paying penalty rates.