Maximum Import Capacity Changes from April: How UK Businesses Can Reduce Electricity Capacity Charges
From 1st April, changes to Maximum Import Capacity (MIC) reduction rules could create a significant cost saving opportunity for commercial and industrial businesses across the UK.
For many energy intensive sites, Maximum Import Capacity is rarely reviewed once set. Yet MIC directly determines your electricity capacity charges. If your business doesn’t utilise its full contracted capacity, you could be paying thousands of pounds each year for unused supply headroom.
At Energy Oasis, our procurement team has been analysing client Maximum Import Capacity positions ahead of the April changes. With greater flexibility now being introduced, businesses may be able to reduce fixed electricity standing charges in a way that was previously restricted.
What Is Maximum Import Capacity?
Maximum Import Capacity (MIC), measured in kVA, is the maximum electrical load your site is permitted to draw from the grid at any one time.
This contracted kVA level determines your fixed electricity capacity charges. The higher your Maximum Import Capacity, the higher your annual standing cost, regardless of actual usage.
Many manufacturing, agricultural and industrial sites originally secured higher capacity levels to allow for expansion, heavy machinery or seasonal peaks. Over time, however, operations change. Efficiency improves, production levels adjust, and on-site solar PV reduces grid reliance.
Despite this, Maximum Import Capacity often remains unchanged.
We frequently see sites operating at 40-60% of their contracted MIC while continuing to pay electricity capacity charges based on the full amount.
What’s Changing from April?
In recent years, reducing Maximum Import Capacity has been limited by minimum reduction thresholds. In practice, businesses were often required to reduce their MIC by 50% or more before a change would be processed.
For many organisations, that level of reduction was neither practical nor commercially sensible. As a result, smaller adjustments simply did not happen.
From 1st April, this minimum threshold is being removed. Businesses will have greater flexibility to reduce Maximum Import Capacity in line with actual demand.
For sites that may benefit from a 20-30% reduction, this represents a significant cost saving opportunity.
The Financial Opportunity
For large energy users, electricity capacity charges form a significant fixed element of the overall bill.
Even a modest reduction in Maximum Import Capacity can generate thousands of pounds per year in savings, particularly for:
Energy intensive industrial sites
Manufacturing facilities
Agricultural operations
Businesses that have downsized production
Sites with on-site renewable generation
Reviewing Maximum Import Capacity is not about chasing short term price fluctuations. It is about correcting a structural cost within your electricity contract.
A Strategic Decision
Reducing Maximum Import Capacity should be approached carefully.
Once kVA capacity is surrendered, reinstating it can be complex and very expensive. In some cases, increasing Maximum Import Capacity later may require network upgrades, long lead times or capital contributions.
Businesses should consider:
Future expansion plans
Electrification or EV charging
Operational growth
Long-term site resale value
A site with higher available capacity can be more attractive to future operators or buyers.
This is why data-led analysis is essential.
At Energy Oasis, we assess half-hourly demand data, review historic maximum usage, model future scenarios and manage engagement with suppliers and network operators. Our role is to ensure any reduction in Maximum Import Capacity delivers savings without compromising long-term resilience.
Is It Time to Review Your Maximum Import Capacity?
If your organisation has not reviewed its Maximum Import Capacity in recent years, particularly if you have invested in efficiency improvements or on-site renewables, now is the time.
With greater flexibility from April, businesses may be able to reduce electricity capacity charges in a controlled and strategic way.
Energy Oasis can carry out an initial Maximum Import Capacity assessment and advise whether a reduction would be financially and operationally appropriate for your site.
If you are paying for capacity you no longer use, please get in touch today.