(06 Jul 2010)
Most non domestic customers are charged for the cost of the electricity network that is allocated to their business - shown as Maximum Import Capacity (MIC) on electricity bills. This charge is based on the capacity that the customer requested, usually on the basis of an estimated demand, when the application for a connection was made.
If the MIC is too low customers pay for excess capacity charges and if the MIC is too high for a customers needs the customer is paying for capacity that they don't need. In our experience, optimising the MIC is one of the simplest and quickest ways to reduce energy costs for many companies.
Until recently electricity customers had to pay ESB Networks for reducing their MIC to cover the costs of 'stranded assets'. The Commission for Energy regulation has now imposed a moratorium on charges for reducing MIC until 2013. Importantly, companies who reduce their MIC can apply to increase their MIC back to original levels within two years.
This means that companies can reduce their electricity bills without any upfront cost and without any risk. Depending on the scope for reducing MIC savings of up to €5,000 a year may be possible. Energy Solutions electricity tariff review service will identify potential savings through switching tariffs and optimising MIC. We will also assist clients in procuring lower cost electricity from the competitive supply market.