Energy glossary

A to Z

AQ (Annual Quantity). The estimated annual gas consumption for a meter, used to price contracts and set take or pay limits.

Availability (kVA). The capacity reserved for your site on the electricity network. You pay for it whether you use it or not, and pay penalties if you exceed it.

Baseload. The steady minimum electricity a site uses at all times, including out of hours.

BICS. The British Industrial Competitiveness Scheme, which exempts eligible manufacturers from some electricity policy costs from 2027.

Capacity Market. A policy cost on electricity bills that pays generators to be available at peak times.

CCL (Climate Change Levy). A tax on business energy use, with reliefs for eligible activities and Climate Change Agreements.

CfD (Contracts for Difference). A government scheme supporting low carbon generation, recovered through a levy on electricity bills.

DC/DA. Data Collector and Data Aggregator, the agents who retrieve and process half hourly meter data for settlement.

Deadlock letter. A written final response to a complaint, after which the customer can refer the matter to the Energy Ombudsman.

DUoS. Distribution Use of System charges, paid to the local network operator for delivering electricity to your site.

ESOS. The Energy Savings Opportunity Scheme, a mandatory energy audit every four years for large undertakings.

Export. Electricity generated on site and sold back to the grid or to another user.

Fixed price contract. A contract where unit rates are locked for the full term in one purchase.

Flexible contract. A contract where volume is bought in tranches over time, billed at the weighted average price.

Forward curve. The prices at which future delivery periods are trading today.

Half hourly (HH) metering. Metering that records consumption every 30 minutes, required for larger sites and used for settlement.

kWh and MWh. Kilowatt hour and megawatt hour, the units in which energy is bought. 1 MWh is 1,000 kWh.

LOA (Letter of Authority). A signed authority allowing a consultant to obtain information and quotes on a client's behalf.

MOP (Meter Operator). The party contracted to install, maintain and certify a half hourly meter.

MPAN and MPRN. The unique reference numbers for an electricity supply point (MPAN) and a gas supply point (MPRN).

Non-commodity costs. Everything on an energy bill other than the wholesale energy itself: network, policy and supplier costs.

Out of contract rates. The rates a supplier charges when a contract ends without a new one in place, usually far higher than contracted rates.

P272. The change that moved larger sites onto half hourly settlement.

PPA (Power Purchase Agreement). A long term contract to buy power directly from a generator.

REGO. Renewable Energy Guarantees of Origin, certificates evidencing that electricity was generated from renewable sources.

Renewables Obligation (RO). A policy cost on electricity bills that historically supported renewable generation.

SECR. Streamlined Energy and Carbon Reporting, which requires qualifying companies to report energy use and emissions in their annual accounts.

Standing charge. A fixed daily charge on a supply, regardless of consumption.

Take or pay. A contract term requiring a minimum volume to be paid for whether used or not.

TNUoS. Transmission Network Use of System charges, paid for use of the national transmission network.

TPI (Third Party Intermediary). The regulator's term for energy brokers and consultants.

WAP (Weighted Average Price). The volume weighted average of all tranche purchases in a flexible contract, which is what you are billed at.