Business Energy Glossary

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Understanding business energy can be challenging. With dozens of tariffs, charges, metering types and regulatory schemes to navigate, it’s easy for costs to rise or opportunities to be missed simply because the terminology isn’t clear.

This glossary has been created to give businesses complete clarity. It explains every major electricity and gas term you’ll encounter when comparing quotes, reviewing contracts, analysing usage or managing multiple sites — all in one place and written in plain English.

Whether you want to improve budgeting, strengthen procurement decisions or simply understand what you’re being charged for, this resource gives you the confidence to take control of your business energy.

Perfect for:

SMEs and large organisations
Procurement and finance teams
Facility and operations managers
Start-ups and landlords
Anyone looking to cut through energy jargon

Please see the full glossary table below for every business energy term explained clearly and simply.

A

Term	Definition	Category
AC (Alternating Current)	AC is the standard form of electricity used in the UK and changes direction many times per second. It is efficient for long distance transmission and powers most commercial equipment.	Electricity
AQ (Annual Quantity)	AQ is the expected yearly gas consumption agreed with the supplier. It helps forecast wholesale purchasing and maintain accurate contract pricing.	Gas
Active Power/Real Power	Active Power is the usable electricity that performs real work such as powering lighting and machinery. It is measured in kilowatts and forms the basis of most energy charges.	Electricity
Adder (Supplier Margin)	An Adder is the supplier margin added to wholesale energy costs to form the final unit rate. Understanding adders helps compare quotes transparently.	Billing and Contracts
Adjustment Factor	The Adjustment Factor converts gas volume in cubic metres into kilowatt hours for accurate billing. It accounts for changes in temperature and pressure.	Gas
Admin Fee	Admin Fees are non energy charges covering tasks like billing and account management. Reviewing them helps avoid unnecessary costs.	Billing and Contracts
Aggregation	Aggregation combines multiple meters or sites to increase buying power and secure better energy prices. It is common for multi site businesses.	General Energy
Agreed Capacity (Maximum Import Capacity)	Also known as Available Supply Capacity (ASC), Agreed Capacity is the maximum electrical load a site is allowed to draw from the network. Exceeding it triggers excess capacity charges.	Electricity
Air Source Heat Pump (ASHP)	An ASHP is a low carbon heating system that extracts heat from the air. It helps reduce running costs and improve EPC ratings.	Gas
Amber Alert	An Amber Alert signals that the electricity grid is under pressure but still operational. It warns businesses of potential price increases or demand response actions.	Electricity
Ancillary Services	Ancillary Services support grid stability through functions like frequency response and reserve power. They help maintain reliable electricity supply.	Electricity
Annualised Cost	Annualised Cost is the full yearly cost of an energy contract including unit rates and all fees. It helps businesses compare quotes accurately.	Billing and Contracts
Apex Load	Apex Load is the highest peak in electricity demand at a site. Reducing peak load can lower charges and improve efficiency.	Electricity
Approved Meter	An Approved Meter is certified for accurate energy measurement and is required for billing. It ensures fair and compliant energy charges.	Regulation and Compliance
Asset Load	Asset Load refers to the electrical demand of individual equipment items. Managing asset load improves efficiency and reduces overload risks.	Electricity
ATW (Above Tolerance Warning)	ATW alerts indicate energy consumption above contract tolerance levels. Persistent breaches may trigger supplier repricing.	Billing and Contracts
Availability (KVA)	Availability (kVA) or Agreed Capacity refers to the limit of capacity for a site. E.g. if a site has an Availability of 150 kVA then maximum demand should not exceed that figure at any time. It is set and charged by the local Distribution Network Operator (DNO), according to the kVA of a premise. This fee covers investment and maintenance of the electricity network and can also be called the Capacity Charge. Customers pay a fee (per unit) according to the agreed capacity for that site. In theory, maximum demand should not exceed the agreed capacity at any time.	Electricity
Availability Charge	An Availability Charge is a cost applied for the electrical capacity reserved for a site. It is based on Agreed Capacity settings.	Electricity
Average Rate	Average Rate is the blended cost of energy including unit rates and daily charges. It offers a simple way to compare contracts.	Billing and Contracts
AVCO (Average Consumption)	AVCO represents the typical consumption level over a set period. It assists in forecasting and identifying unusual usage patterns.	General Energy
AWC (Allowable Weather Correction)	AWC accounts for how temperature changes affect gas demand. It helps improve accuracy when analysing seasonal gas usage.	Gas

B

Term	Definition	Category
Balancing Mechanism (BM)	The Balancing Mechanism is used by National Grid ESO to keep electricity supply and demand in real time balance. Generators and large energy users can be instructed to increase or reduce output to stabilise the system. Costs from the BM influence non commodity charges on business electricity bills.	Electricity
Baseline Emissions	Baseline Emissions refer to the starting point used to measure a business carbon reduction progress. They are usually calculated over a full year and used for reporting schemes like ESOS or SECR. A clear baseline helps track improvements and set realistic sustainability targets.	Regulation and Compliance
Base Load	Base Load is the minimum constant level of electricity a business consumes throughout the day. It reflects essential equipment such as refrigeration servers lighting or machinery that cannot be switched off. Reducing base load is one of the quickest ways to cut energy costs.	Electricity
Battery	Two or more electrical cells joined together which produce and store electricity. See more for commercial battery storage.	Electricity
Biogas	Biogas is a renewable gas produced from organic waste through anaerobic digestion. It offers a lower carbon alternative to natural gas and is sometimes supplied through Green Gas Certificates. Businesses use biogas to reduce environmental impact without changing equipment.	Gas
Billing Demand	Billing Demand is the highest measured electricity demand used to calculate certain charges for large sites. It influences capacity planning and may trigger additional fees if limits are exceeded. Monitoring demand helps businesses avoid unnecessary peak usage.	Electricity
Biomass	Biomass refers to organic material used as fuel typically wood pellets or agricultural waste. It provides a renewable heat source and can help businesses lower carbon emissions. Biomass systems are often used in commercial buildings with high heating demand.	General Energy
British Electricity Trading And Transmission Arrangements (BETTA)	The BETTA arrangement was introduced in 2005 to create a single wholesale electricity market for Great Britain. It replacing NETA which did not cover Scotland.	Electricity
Brown Power	Brown Power is electricity generated from non renewable sources such as coal or gas. It does not carry renewable certificates and therefore has a higher carbon intensity. Some suppliers label Brown Power separately from green or renewable products.	Electricity
BSC (Balancing and Settlement Code)	The Balancing and Settlement Code governs how electricity is metered traded and financially reconciled across the UK. It ensures accuracy fairness and consistency in the electricity market. Businesses mainly encounter BSC costs through non commodity charges.	Electricity
Budget Billing	Budget Billing is a payment method where businesses pay a fixed monthly amount based on estimated annual usage. It smooths costs over the year and reduces bill fluctuations. Suppliers review the amount periodically to ensure it reflects actual consumption.	Billing and Contracts
Bulk Supply	Bulk Supply refers to high volume energy deliveries usually for large industrial processes or district energy systems. Businesses with bulk usage may access special pricing or contract structures. It often requires additional infrastructure or metering.	General Energy
Burner Tip Price	Burner Tip Price is the final cost of gas when it reaches the point of use inside a building. It includes the wholesale rate network charges and any supplier margin. Understanding this cost helps businesses compare gas efficiency and heating performance.	Gas
Business Day Rate	The Business Day Rate is the electricity unit rate charged during normal operating hours on multi rate tariffs. It is often higher than night rates due to increased demand on the grid. Choosing the right tariff helps reduce day rate exposure.	Billing and Contracts
Business Night Rate	The Business Night Rate is the discounted electricity rate applied overnight typically for businesses operating outside peak hours. It benefits companies with flexible processes or equipment that can run overnight. It also supports load shifting strategies.	Billing and Contracts
Business Energy Tariff	A Business Energy Tariff is an electricity or gas contract designed for commercial users rather than households. It usually offers tailored pricing structures fixed terms and different non commodity charges. Selecting the right tariff improves budgeting and reduces costs.	Billing and Contracts
Balancing Services	Balancing Services are actions taken by National Grid to ensure electricity stability including reserve power voltage control and frequency response. Costs are passed through to commercial customers depending on contract type. Participation can also offer revenue opportunities for large users.	Electricity
Billing Cycle	A Billing Cycle is the standard period a supplier uses to produce an energy invoice often monthly or quarterly. Understanding your billing cycle helps track usage and budget effectively. Businesses with smart or half hourly meters often receive more accurate cycle data.	Billing and Contracts
Benchmark Consumption	Benchmark Consumption is an estimated usage figure used to compare business performance against similar sites. It identifies whether energy use is typical high or low for the industry. Benchmarks support energy audits and improvement planning.	General Energy
Building Energy Management System (BEMS)	A BEMS is a system that controls and monitors energy usage across a building including heating cooling ventilation and lighting. It helps optimise performance reduces waste and improves comfort levels. Many businesses install BEMS to support carbon reduction strategies.	General Energy
Building Load	Building Load refers to the total energy demand of a premises at any given time. It includes heating cooling machinery and essential equipment. Managing building load helps reduce peak charges and improve operational efficiency.	Electricity
Billing Accuracy Check	A Billing Accuracy Check is an audit comparing billed consumption against meter readings and contract rates. It helps identify errors such as estimated bills or incorrect charges. Many businesses use third parties to perform regular checks.	Billing and Contracts

C

Term	Definition	Category
Calorific Value	Calorific Value is the amount of energy released when gas is burned and is used to convert gas volume into kilowatt hours. Higher calorific value means more usable energy per cubic metre. It helps ensure accurate gas billing for commercial users.	Gas
Capacity Agreement	A Capacity Agreement is a contract under the UK Capacity Market where generators commit to providing electricity when needed. It ensures enough backup power is available during peak demand. Businesses mainly encounter these costs through non commodity charges.	Electricity
Capacity Charge	A Capacity Charge is a fee paid for the electrical capacity reserved for a site usually based on Agreed Capacity. Businesses exceeding their limit may incur excess capacity charges. Reviewing capacity settings can reduce ongoing costs.	Billing and Contracts
Capacity Market	The Capacity Market ensures enough electricity generation is available to meet peak demand in the UK. Generators receive payments for staying on standby and delivering power when called upon. Costs are recovered from energy users through supplier charges.	Electricity
Carbon Allowances	Carbon Allowances are certificates that permit businesses to emit a certain amount of carbon under trading schemes. They are used in large energy intensive industries to control and reduce emissions. Prices fluctuate based on demand and environmental policy.	Gas
Carbon Capture and Storage	Carbon Capture and Storage is a technology that captures carbon dioxide from industrial processes and stores it underground. It reduces emissions from sectors that are difficult to decarbonise. Businesses may see related costs or incentives in future energy policy.	Regulation and Compliance
Carbon Factor	The Carbon Factor represents the amount of carbon dioxide released per kilowatt hour of electricity consumed. It changes depending on the generation mix on the grid. Businesses use it for carbon reporting and sustainability calculations.	Regulation and Compliance
Carbon Intensity	Carbon Intensity measures how much carbon dioxide is produced to generate each unit of electricity. It varies throughout the day based on renewable availability and grid demand. Monitoring carbon intensity helps businesses schedule low carbon energy use.	Regulation and Compliance
Brown Power	Brown Power is electricity generated from non renewable sources such as coal or gas. It does not carry renewable certificates and therefore has a higher carbon intensity. Some suppliers label Brown Power separately from green or renewable products.	Electricity
Climate Change Levy (CCL)	The Climate Change Levy is a government tax applied to business energy use. It encourages companies to reduce energy consumption and improve efficiency. Eligible businesses may receive discounts through Climate Change Agreements.	Billing and Contracts
Climate Change Agreement (CCA)	A CCA is a voluntary scheme that provides significant discounts on the Climate Change Levy for eligible energy intensive businesses. To qualify companies must meet energy saving targets. CCAs help reduce operational costs and support long term sustainability.	Billing and Contracts
Combined Cycle Gas Turbine (CCGT)	A CCGT plant generates electricity using natural gas and captures waste heat to increase efficiency. It is one of the most common forms of electricity generation in the UK. CCGT plants provide flexible output to balance renewable generation.	General Energy
Combined Heat and Power (CHP)	CHP systems generate electricity on site and capture the heat for use in buildings or industrial processes. They improve efficiency and reduce overall energy costs. Businesses use CHP to increase resilience and lower carbon output.	General Energy
Closed Profile Class	Closed Profile Classes are historic electricity profile categories no longer used for new connections. They remain relevant when analysing older supply data or legacy billing formats. Most modern sites are classified under updated profile systems.	Billing and Contracts
Commodity Cost	Commodity Cost is the wholesale cost of electricity or gas which makes up part of the unit rate. It fluctuates based on market conditions supply risks and demand levels. All fixed and flexible tariffs are influenced by commodity cost movements.	Billing and Contracts
Connection Agreement	A Connection Agreement sets out the technical and commercial conditions under which a business is connected to the electricity network. It includes details such as capacity limits and metering arrangements. Understanding it helps businesses avoid non compliance charges.	Regulation and Compliance
Consumption Benchmark	A Consumption Benchmark is a typical usage figure used to compare energy performance against similar businesses. It provides insight into whether a site is operating efficiently. Benchmarks support audits and identify areas for improvement.	General Energy
Contract End Date	The Contract End Date is the final day of an energy supply agreement. Businesses must renew negotiate or switch before this date to avoid rolling onto higher rates. Keeping track of contract end dates prevents unwanted default tariffs.	Billing and Contracts
Credit Cover	Credit Cover is a financial guarantee required for some flexible energy purchasing arrangements. It protects the supplier against non payment risk. Larger businesses often provide credit cover when buying energy directly from wholesale markets.	Billing and Contracts
CT Meter (Current Transformer Meter)	A CT Meter is used for sites with high electricity demand and requires external transformers to measure current safely. It provides accurate consumption data for larger commercial premises. CT meters often support half hourly metering.	Electricity
Customer Transfer Blocking	Customer Transfer Blocking occurs when a supplier prevents a switch usually due to debt or contract disputes. It is regulated by Ofgem to ensure fair switching processes. Businesses must resolve outstanding issues before the transfer can proceed.	Billing and Contracts

D

Term	Definition	Category
D0001 Data Flow	D0001 is a standard electricity industry data flow used to send meter readings between market participants. It helps suppliers validate consumption and produce accurate bills. Businesses may hear the term when dealing with metering issues or billing disputes.	Metering
D0010 Meter Readings	D0010 is an industry data file containing actual or estimated meter readings sent to suppliers. It ensures that billing reflects the latest consumption information. Accurate D0010 data reduces the risk of incorrect invoices.	Metering
D0030 Consumption Data Report	D0030 is a half hourly consumption report used by suppliers and industry agents. It contains detailed usage data that supports billing, forecasting and analysis. Businesses with half hourly meters rely on this data for performance reviews.	Metering
D0052 Estimated Annual Consumption Update	D0052 is a data flow that updates the estimated annual consumption for electricity customers. It helps suppliers forecast demand more accurately. Changes in D0052 values can affect standing charges and contract pricing.	Metering
D0095 Meter Technical Details	D0095 contains technical information about a meter such as type, configuration and identifiers. It ensures all industry parties have correct metering records. Accurate D0095 data helps avoid billing delays and switching issues.	Metering
Daily Meter (DM)	A supply point whose annual quantity (consumption) is greater than 58,600,000kWh (2,000,000 therms per annum), will have a mandatory DM meter fitted.	Metering
Daily Standing Charge	The Daily Standing Charge is a fixed daily fee covering network access metering and supplier administration. It applies regardless of how much energy is used. Reviewing standing charges helps businesses understand their total cost structure.	Billing and Contracts
Daily Unit Rate	The Daily Unit Rate is the electricity price per kilowatt hour used during daytime hours on a multi rate tariff. It is usually higher because demand on the grid is greatest during the day. Businesses can reduce costs by shifting usage away from peak hours.	Billing and Contracts
Data Aggregator (DA)	A Data Aggregator is responsible for collecting and consolidating meter data from different sources. They ensure consumption figures are accurate before being sent for settlement. Reliable aggregation supports fair and consistent billing.	Metering
Data Collector (DC)	A Data Collector retrieves meter readings from sites for use in billing and settlement processes. They play a key role in ensuring meter data is accurate and up to date. Businesses rely on good DC performance to avoid estimated bills.	Metering
Data Logger	A Data Logger is a device that records energy usage at regular intervals. It is used to analyse consumption patterns identify inefficiencies and support energy audits. Many businesses use loggers to monitor high usage equipment.	General Energy
Day Ahead Price	The Day Ahead Price is the wholesale electricity or gas price agreed one day before delivery. It is commonly used in flexible purchasing contracts. Monitoring day ahead prices helps businesses manage procurement risk.	Billing and Contracts
Deemed Rates	Deemed Rates are high default prices charged when a business uses energy without an active contract. They are significantly more expensive than negotiated rates. Avoiding deemed rates is essential for cost control.	Billing and Contracts
Demand Charge	A Demand Charge applies to businesses with high electrical loads and is based on the maximum power drawn from the grid. It encourages users to avoid unnecessary peaks. Managing demand helps reduce operational costs.	Electricity
Demand Forecasting	Demand Forecasting predicts future energy usage based on operational trends and seasonal patterns. Accurate forecasting helps businesses choose suitable contracts and avoid overpaying. It also supports budgeting and efficiency planning.	Electricity
Demand Side Response (DSR)	Demand Side Response rewards businesses for reducing or shifting electricity use at certain times. It helps support the grid during periods of high demand or low supply. Participating in DSR can provide additional revenue or cost savings.	Electricity
Department of Trade and Industry (DTI)	The Department of Trade and Industry, a UK government department which, among other responsibilities, has a leading role the UK Government oversight of energy policy (UK).	Regulation and Compliance
Direct Current (DC)	An electrical current which flows only in one direction in a circuit. Batteries and fuel cells produce direct current.	General Energy
DUoS Distribution Use of System	DUoS charges cover the cost of using local electricity networks operated by Distribution Network Operators. These charges vary by region and time of use. Businesses on pass through contracts see DUoS listed separately on bills.	Electricity
Distribution Network Operator (DNO)	A Distribution Network Operator manages the local electricity infrastructure including cables and substations. They ensure the safe delivery of electricity from the national grid to business sites. DNO region affects network charges and capacity rules.	Electricity
Domestic / Non Domestic Supply	A Supply Point with an AQ of 73,200kWH (2500 therms) or less, is deemed as a domestic site. (This does not mean the user is necessarily residential). A supply point with an AQ of over 73,00kWh is deemed as non-domestic.	Billing and Contracts
Dynamic Load	Dynamic Load refers to electrical demand that varies frequently throughout the day. Understanding dynamic load helps businesses manage peak usage and improve efficiency. It is particularly important for sites with machinery that cycles on and off.	Electricity
Dynamic Purchasing	Dynamic Purchasing allows businesses to buy energy at multiple points throughout a contract instead of fixing all costs upfront. It offers flexibility but requires active market monitoring. Many larger businesses use dynamic purchasing for cost control.	Billing and Contracts
Dynamic TNUoS Tariff	Dynamic TNUoS refers to transmission charges that change depending on system needs or peak demand levels. It can influence the timing of electricity use for large business users. Managing consumption during high charge periods helps reduce bill costs.	Electricity

E

Term	Definition	Category
Estimated Annual Consumption (EAC)	Estimated Annual Consumption is the forecast electricity usage for a site over a full year. Suppliers use EAC to plan purchasing and calculate contract pricing. Keeping it accurate helps prevent billing issues and unexpected charges.	Billing and Contracts
Embedded Generation	Embedded Generation refers to electricity produced on site or locally such as solar panels or CHP units. It reduces reliance on the national grid and can lower energy costs. Businesses with embedded generation may also benefit from export payments.	Electricity
Energy Arbitrage	Energy Arbitrage is the practice of using storing or exporting electricity when prices are lower and reducing usage when prices are higher. It is common for businesses with batteries or flexible processes. Effective arbitrage reduces overall energy spend.	Electricity
Energy Audit	An Energy Audit is a detailed review of how a business uses electricity and gas. It identifies inefficiencies and recommends cost saving measures. Audits are commonly used to support ESOS compliance or carbon reduction planning.	General Energy
Energy Breakdown	An Energy Breakdown shows how consumption is split across equipment departments or time periods. It helps businesses understand where savings can be made. Detailed breakdowns improve budgeting and support efficiency plans.	General Energy
Energy Broker	An Energy Broker acts on behalf of a business to find competitive electricity or gas contracts. They compare suppliers manage tenders and advise on pricing. Transparency around broker fees is important for fair comparisons.	Billing and Contracts
Energy Consumption Profile	An Energy Consumption Profile shows how energy use changes throughout the day week or year. It helps identify peak usage patterns and waste. Businesses use profiles to optimise equipment schedules and reduce costs.	General Energy
Energy Efficiency Measure	An Energy Efficiency Measure is an action that reduces the amount of electricity or gas a business uses. Examples include LED lighting insulation controls or upgraded machinery. These measures reduce costs and support sustainability goals.	General Energy
Energy Intensive User	An Energy Intensive User is a business that consumes large amounts of energy as part of its operations. These companies often qualify for government schemes that reduce network or environmental charges. Managing energy efficiently is critical for their competitiveness.	General Energy
Energy Management System (EMS)	An EMS is a system used to monitor and control energy use across a site. It helps identify waste optimise equipment and track performance. EMS tools are common in large sites with complex energy demands.	General Energy
Energy Ombudsman	The Energy Ombudsman is an independent body that resolves disputes between businesses and energy suppliers. It provides free impartial decisions when complaints cannot be resolved directly. Businesses often use the Ombudsman for billing or service issues.	Regulation and Compliance
Energy Performance Certificate (EPC)	An EPC rates how energy efficient a building is and provides recommendations for improvement. Commercial properties require an EPC during sale rental or construction. Better EPC ratings help reduce energy costs and improve compliance.	Regulation and Compliance
Energy Procurement	Energy Procurement is the process of sourcing electricity or gas contracts for a business. It involves timing the market comparing suppliers and choosing tariff types. Effective procurement reduces long term costs and risk.	Billing and Contracts
Energy Profile Class	An Energy Profile Class categorises electricity meters based on usage patterns. Domestic and small business meters often fall into profile classes instead of half hourly categories. The profile affects billing structure and forecasting.	Metering
Energy Strategy	An Energy Strategy outlines how a business plans to reduce costs carbon output and risk. It includes procurement efficiency generation and long term targets. Strong strategies support resilience and regulatory compliance.	General Energy
Energy Supplier of Last Resort (SoLR)	A Supplier of Last Resort is appointed when an energy supplier fails. It ensures continuity of supply for affected businesses. Customers are transferred automatically until they choose a new contract.	Regulation and Compliance
Energy Theft	Energy Theft refers to illegally bypassing or tampering with electricity or gas meters. It is a criminal offence that increases network costs for all users. Suppliers use data analysis to detect suspicious activity.	Regulation and Compliance
Energy Savings Opportunity Scheme (ESOS)	ESOS is a mandatory energy audit scheme for large UK businesses. It requires organisations to measure consumption review efficiency and identify improvement opportunities every four years. Non compliance can result in financial penalties.	Regulation and Compliance
EV Charge Point	An EV Charge Point is a device that supplies electricity to electric vehicles at a business site. Companies install charge points to support staff fleets or customers. They may also access grants or incentives to reduce installation costs.	Electricity
Ex Ante Pricing	Ex Ante Pricing is a forward looking pricing method where rates are set before the energy is consumed. It is common in fixed price contracts. Businesses use it to secure price certainty and protect against market volatility.	Billing and Contracts
Ex Post Pricing	Ex Post Pricing is based on actual energy usage and costs after consumption occurs. It is common in flexible purchasing contracts. This method offers transparency but exposes businesses to price fluctuations.	Billing and Contracts

F

Term	Definition	Category
Feed in Tariff (FiT)	The Feed in Tariff was a government incentive that paid businesses for generating renewable electricity on site. Although closed to new applicants it still applies to older solar and renewable installations. FiT provides both generation payments and export payments.	Electricity
Fixed Charge	A daily, monthly or quarterly charge levied by the supplier and is in addition to the standing charge.	Billing and Contracts
Fixed Energy Contract	A Fixed Energy Contract locks in the unit rate and standing charge for a set period. It protects businesses from market volatility and makes budgeting simpler. These contracts suit organisations wanting cost certainty.	Billing and Contracts
Flexible Energy Contract	A Flexible Contract allows the business to purchase energy in multiple blocks throughout the term. It offers more control over buying strategy but requires active market engagement. Larger energy users often prefer flexible arrangements.	Billing and Contracts
Flexi Purchasing	Flexi Purchasing is a buying method where energy is bought in smaller tranches rather than all at once. It aims to secure better prices by spreading market risk. Companies with higher usage often use flexi purchasing for long term cost optimisation.	Billing and Contracts
Floor Price	A Floor Price is the minimum price set within a contract or tariff that the unit rate cannot fall below. It protects suppliers during market downturns. Businesses benefit from understanding floor prices when comparing flexible tariffs.	Billing and Contracts
Forecast Consumption	Forecast Consumption is the estimated gas or electricity usage a business expects over a future period. Suppliers rely on forecasts to plan purchasing and set contract terms. Accurate forecasting supports budgeting and risk management.	General Energy
Frequency Response	Frequency Response is a grid service used to stabilise the electricity system when frequency deviates from its target. Some businesses with flexible load or generation can provide frequency response to earn revenue. It helps the grid react quickly to sudden demand changes.	Electricity
Fuel Mix Disclosure	Fuel Mix Disclosure shows the types of energy sources a supplier uses such as renewable gas nuclear or coal. It helps businesses understand their environmental impact. Suppliers must publish fuel mix data every year.	Regulation and Compliance
Fuel Poor Network Extension Scheme	This scheme helps qualifying households connect to the gas network but can affect network charges. Businesses mainly encounter its costs indirectly through transport charges. It forms part of regulated social support mechanisms.	Regulation and Compliance
Fuse Capacity	Fuse Capacity refers to the maximum electrical load that a fuse or main protection device can safely handle. Exceeding fuse capacity can cause outages or equipment issues. It is an important factor when upgrading electrical infrastructure.	Electricity

G

Term	Definition	Category
Gas Distribution Network (GDN)	A Gas Distribution Network is responsible for transporting gas from the national transmission system to homes and businesses. Each region has its own operator who maintains pipelines and ensures supply reliability. GDN costs appear as part of non commodity charges on gas bills.	Gas
Gas Emergency Cut Off Valve	A Gas Emergency Cut Off Valve stops the gas supply in the event of a leak or safety issue. It helps protect the premises and supports emergency response procedures. Businesses must ensure that staff know where the valve is located and how to operate it safely.	Gas
Gas Load	Gas Load refers to the amount of gas a business uses at a given time. Understanding gas load helps size equipment and forecast demand accurately. It also supports procurement decisions and capacity planning.	Gas
Gas Meter Point Reference Number (MPRN)	The MPRN is the unique identifier for a gas supply point. It is required for switching suppliers and resolving billing issues. Businesses can find it on gas bills or by contacting their current supplier.	Gas
Gas Safe Register	The Gas Safe Register is the official list of qualified engineers permitted to work on gas systems. Businesses must use Gas Safe engineers for installation repair and inspection work. This ensures legal compliance and protects site safety.	Regulation and Compliance
Gas Settlement	Gas Settlement is the industry process that ensures all gas delivered and consumed is accurately recorded and paid for. It uses meter readings forecasts and allocation rules. Settlement accuracy helps keep bills aligned with actual usage.	Gas
Gas Shipper	A Gas Shipper arranges for gas to be transported through the network to the supplier and ultimately to the business. Shippers work behind the scenes but their charges flow through to final gas bills. Their role ensures stable supply and market efficiency.	Gas
Gas Supplier	A Gas Supplier provides the commercial contract and billing services to the business. They buy gas from shippers and wholesalers and deliver customer support and account management. Switching suppliers can reduce cost and improve service.	Gas
Giga Watt (GW)	Giga Watt – 1,000 MW.	General Energy
Gigawatt Hour (GWh)	A Gigawatt Hour is a unit of energy equal to one million kilowatt hours. It is used to measure large scale consumption such as that of industrial users or national demand. GWh figures help compare usage trends over long periods.	General Energy
Greenhouse Gas Conversion Factor (GCF)	The GCF is used to convert energy usage into carbon emissions for reporting purposes. It changes each year based on the UK generation mix. Businesses use GCF values in sustainability reporting such as SECR or ESG statements.	Regulation and Compliance
Greenhouse Gas (GHG) Protocol	A widely used standard for emissions reporting. The protocol covers project emissions reporting and corporate emissions reporting. The corporate emissions reporting standard provides a methodology for calculation of a carbon footprint. The protocol was developed by the World Resources Institute and the World Business Council for Sustainable Development.	Regulation and Compliance
Green Gas Certificate	A Green Gas Certificate verifies that a portion of the gas supplied comes from renewable sources such as biogas. Businesses use these certificates to demonstrate lower carbon impact. They help support the growth of the green gas market.	Gas
Green Power Tariff	A Green Power Tariff supplies electricity matched with renewable certificates. It helps businesses reduce carbon footprint without installing their own generation. Green tariffs vary in quality based on the type of certificate used.	Electricity
Grid Balancing	Grid Balancing is the process of matching electricity supply and demand in real time. National Grid uses various tools to maintain stability such as frequency response and reserve power. Businesses may indirectly pay for balancing through non commodity charges.	Electricity
Grid Connection	A Grid Connection links a business site to the electricity network. The connection capacity and design affect what equipment can be installed. Upgrading a connection may be required for high load facilities or on site generation projects.	Electricity
Grid Constraint	A Grid Constraint occurs when the network cannot move electricity freely due to limited capacity or system issues. It may lead to higher balancing costs or curtailment of renewable generation. Businesses may see the impact through increased network charges.	Electricity
Grid Supply Point (GSP)	A Grid Supply Point is where electricity moves from the transmission network into local distribution networks. It plays an important role in regional pricing and system balancing. Businesses do not interact directly with GSPs but pay charges influenced by them.	Electricity

H

Term	Definition	Category
Half Hourly Data (HHD)	Half Hourly Data is electricity usage recorded every 30 minutes by a half hourly meter. It provides highly accurate insight into when and how energy is used. Businesses use this data for forecasting efficiency planning and reducing peak demand.	Metering
Half Hourly Meter (HH Meter)	A Half Hourly Meter automatically sends usage data every half hour to the supplier. It is mandatory for larger electricity users and improves billing accuracy. HH metering supports advanced analytics demand management and flexible energy contracts.	Metering
Hard Standing Charge	A Hard Standing Charge is a fixed cost applied to cover network availability and infrastructure access. It applies even when little or no energy is consumed. Understanding this charge helps businesses evaluate the true cost of their contract.	Billing and Contracts
Heat Pump	A Heat Pump is an energy efficient system that extracts heat from the air ground or water. It reduces reliance on fossil fuels and can lower long term heating costs. Many businesses install heat pumps to improve EPC ratings and sustainability performance.	General Energy
Heating Degree Days (HDD)	Heating Degree Days measure how cold the weather is and how much heating energy is likely to be required. They help businesses forecast seasonal gas use and analyse heating performance. HDD data is widely used in energy audits and building optimisation.	General Energy
High Voltage (HV)	High Voltage (11,000 Volts or above).	Electricity
High Voltage Supply (HV Supply)	A High Voltage Supply provides electricity at higher voltages for large industrial or commercial sites. HV connections offer improved efficiency but require specialised equipment and safety measures. Businesses with HV supply often face different network charges.	Electricity
Historic Consumption	Historic Consumption refers to past electricity or gas usage data for a site. Suppliers use it when pricing contracts and assessing load patterns. Reviewing historic consumption helps businesses identify trends and potential savings.	General Energy
Holiday Mode Tariff	A Holiday Mode Tariff is a special rate offered when energy consumption is expected to be significantly lower for a period. It is sometimes used by seasonal businesses. It helps reduce costs during known shutdown periods.	Billing and Contracts
Hot Water Load	Hot Water Load refers to the amount of energy required to heat water for business operations. It is common in hospitality healthcare and food production. Managing hot water load helps reduce overall gas or electricity consumption.	General Energy
Heating Ventilation and Air Conditioning (HVAC)	HVAC systems manage indoor temperature and air quality in commercial buildings. These systems are major energy users and offer significant savings opportunities through tuning controls and upgrades. Efficient HVAC management improves comfort and reduces running costs.	General Energy

I

Term	Definition	Category
Independent Public Gas Transporter (IGT)	An independent company who has responsibility of the maintenance of a gas supply network.	General Energy
Industrial and Commercial Supply (I&C)	I and C supply refers to energy contracts designed for medium to large business users with higher consumption levels. These contracts offer tailored pricing structures and may include flexible purchasing options. They differ from standard SME tariffs due to higher load and complexity.	Billing and Contracts
Infrastructure Costs	These relate mostly to the costs of providing the infrastructure required to deliver power. They include the cost of energy lost as heat as it travels from the power station down the transmission and distribution wires to you (which we call Tloss and Dloss), and charges for using the transmission and distribution networks (which are called TUoS and DUoS).	General Energy
Import	Where a site consumes electricity as opposed to generating and exporting power. Import is the most common type of site.	Electricity
Import Capacity	Import Capacity is the maximum electrical load a site is permitted to draw from the grid. It is set by the Distribution Network Operator and shown on electricity bills. Exceeding import capacity can result in penalty charges.	Electricity
Import Meter	An Import Meter records the amount of electricity drawn from the grid into a business site. It forms the basis for billing and consumption reporting. Businesses with generation systems also use import meters alongside export meters.	Metering
Imbalance Charges	Imbalance Charges apply when a supplier or generator buys or sells more or less electricity than planned. These charges help balance the national grid. Businesses on flexible contracts may indirectly see the impact of imbalance costs.	Electricity
Incentive Scheme	An Incentive Scheme encourages businesses to reduce consumption or improve efficiency through rewards or reduced charges. Examples include demand response and energy efficiency grants. Incentive schemes support cost savings and sustainability goals.	General Energy
Industry Charges	Industry Charges are non commodity costs passed through on electricity or gas bills. They include transmission distribution balancing and environmental scheme costs. Industry charges can make up a significant portion of total energy spend.	Billing and Contracts
Installed Capacity	Installed Capacity refers to the maximum possible output of on site generation equipment such as solar panels or CHP. It helps determine grid connection requirements and export potential. Knowing installed capacity is important when assessing project viability.	Electricity
Interconnector	An Interconnector is a high voltage cable linking the UK to another country for energy trading. It increases security of supply and helps balance the system. Interconnector flows influence wholesale prices.	Electricity
Interval Data	Interval Data refers to energy usage recorded at regular intervals such as every 15 or 30 minutes. It provides detailed insight into consumption patterns. Businesses use interval data to optimise operations and reduce peak demand.	Metering
Inverter	An Inverter converts direct current from solar panels or batteries into alternating current for use in buildings. It is an essential component of renewable energy systems. Efficient inverters help maximise generation performance.	Electricity
IPP Independent Power Producer	An Independent Power Producer generates electricity for sale to the grid or direct supply. IPPs often operate renewable or flexible generation assets. They play a key role in diversifying the UK energy market.	Electricity
ISO 14064	This is an international standard for corporate emissions reporting. It builds on the approach outlined in the Greenhouse Gas Protocol.	Regulation and Compliance
ISO Energy Standards	ISO energy standards such as ISO 50001 help businesses manage energy use more effectively. These standards provide structured frameworks for reducing consumption and improving performance. Certification supports compliance and sustainability reporting.	Regulation and Compliance

J

Term	Definition	Category
Joule	A Joule is the basic unit of energy used in scientific measurement. It represents the amount of work done when one watt of power is used for one second. While not commonly used in billing it helps explain how energy is measured and converted.	General Energy
Jointers	Jointers are specialists who connect or repair electricity cables within distribution networks. They ensure safe installation of underground and overhead power lines. Their work supports network reliability and reduces outage risks for businesses.	Electricity
Jointing Pit	A Jointing Pit is an access point in the ground that allows engineers to reach and maintain underground electricity cables. It provides a safe working area for connecting or repairing power lines. These pits are essential for maintaining local network infrastructure.	Electricity
Jurisdictional Charges	Jurisdictional Charges refer to regulated costs applied by government bodies or industry authorities. These charges are included within business energy bills and support infrastructure maintenance or policy schemes. They contribute to the non commodity portion of electricity and gas pricing.	Billing and Contracts
J-power Curve	A J power Curve is a graphical view of how electricity demand increases sharply after a low load period forming a J shape. It is used in forecasting and operational planning for larger energy users. Understanding this curve helps businesses manage demand peaks.	Electricity
Job Completion Certificate	A Job Completion Certificate confirms that electrical or gas installation work has been carried out safely and correctly. Businesses may require this certificate for compliance records or insurance purposes. It provides assurance that equipment meets industry standards.	Regulation and Compliance
Joint Network Analysis	Joint Network Analysis assesses how both gas and electricity networks operate together in a local area. It helps identify capacity limits and future infrastructure needs. Businesses planning expansion projects may be affected by joint network outcomes.	Electricity
Jurisdictional Metering	Jurisdictional Metering refers to meters used in specific regulatory categories such as commercial industrial or public sector sites. These meters must comply with standards set by industry bodies. Accurate metering supports fair billing and contract performance.	Metering
Industry Charges	Industry Charges are non commodity costs passed through on electricity or gas bills. They include transmission distribution balancing and environmental scheme costs. Industry charges can make up a significant portion of total energy spend.	Billing and Contracts
Installed Capacity	Installed Capacity refers to the maximum possible output of on site generation equipment such as solar panels or CHP. It helps determine grid connection requirements and export potential. Knowing installed capacity is important when assessing project viability.	Electricity
Interconnector	An Interconnector is a high voltage cable linking the UK to another country for energy trading. It increases security of supply and helps balance the system. Interconnector flows influence wholesale prices.	Electricity
Interval Data	Interval Data refers to energy usage recorded at regular intervals such as every 15 or 30 minutes. It provides detailed insight into consumption patterns. Businesses use interval data to optimise operations and reduce peak demand.	Metering
Inverter	An Inverter converts direct current from solar panels or batteries into alternating current for use in buildings. It is an essential component of renewable energy systems. Efficient inverters help maximise generation performance.	Electricity
IPP Independent Power Producer	An Independent Power Producer generates electricity for sale to the grid or direct supply. IPPs often operate renewable or flexible generation assets. They play a key role in diversifying the UK energy market.	Electricity
ISO 14064	This is an international standard for corporate emissions reporting. It builds on the approach outlined in the Greenhouse Gas Protocol.	Regulation and Compliance
ISO Energy Standards	ISO energy standards such as ISO 50001 help businesses manage energy use more effectively. These standards provide structured frameworks for reducing consumption and improving performance. Certification supports compliance and sustainability reporting.	Regulation and Compliance

K

Term	Definition	Category
Kilovolt Ampere (kVA)	kVA is a unit used to measure electrical load capacity and is often used in relation to Agreed Capacity. It indicates how much electrical demand a site can place on the network. Businesses must ensure their kVA allowance is set correctly to avoid excess capacity charges.	Electricity
Kilovolt (Kv)	A Kilovolt is a unit of electrical potential equal to one thousand volts. It is commonly used in high voltage distribution networks. Understanding kV levels helps businesses when upgrading or connecting large electrical equipment.	Electricity
Kilowatt Hour (kWh)	A Kilowatt Hour is the standard unit used to measure energy consumption on business electricity and gas bills. It represents using one kilowatt of power for one hour. Reducing kWh usage directly lowers operational energy costs.	General Energy
Kilowatt (kW)	A Kilowatt is a unit of power that measures how fast energy is being used at a given moment. It is commonly used for equipment ratings such as heaters motors or lighting systems. Understanding kW demand helps businesses avoid high peak usage.	Electricity
Kilo Var (kVAr)	kVAr is a unit of reactive power which is used to support voltage levels on the electricity network. Businesses with poor power factor may incur reactive power charges linked to kVAr demand. Improving power factor reduces waste and equipment strain.	Electricity
Kilo Var Hour (kVArh)	kVArh measures how much reactive power is consumed over time. High kVArh usage can lead to additional charges for sites with older or inefficient equipment. Monitoring reactive load helps improve electrical efficiency.	Electricity
Key Meter	A Key Meter is a type of prepayment electricity meter operated using a top up key. Although more common in residential settings some small businesses still use them. They help control spending but usually come with higher unit rates.	Metering
Kiln Load	Kiln Load refers to the significant energy demand created by industrial kilns used in manufacturing or ceramics. Managing kiln load helps avoid high peak consumption and reduces running costs. These systems often require dedicated supply arrangements.	General Energy
Knot Energy Loss	Knot Energy Loss describes energy lost due to inefficiencies at points where network cables join. It is a minor but measurable factor in distribution performance. Businesses do not pay for this directly but it forms part of overall network costs.	Electricity

L

Term	Definition	Category
Landlord Supply	A Landlord Supply is an energy supply controlled by a landlord and used for communal or multi tenant areas. The landlord manages billing and may recharge tenants. Clear metering is important to avoid disputes.	Billing and Contracts
Late Payment Charge	A Late Payment Charge is applied when a business does not pay its energy bill on time. It compensates suppliers for administrative and cash flow impacts. Avoiding late fees helps manage overall energy costs.	Billing and Contracts
LED Lighting	LED Lighting is an efficient alternative to traditional lighting that uses far less electricity. Businesses switch to LED to cut running costs and reduce maintenance. It is one of the quickest and simplest energy saving upgrades.	General Energy
Liquefied Natural Gas (LNG)	LNG is natural gas cooled into a liquid for storage or transport. It is used as an alternative supply source during shortages or peak demand. LNG availability can influence wholesale gas prices.	Gas
Load	Load refers to the amount of electrical power a business is using at any moment. Managing load helps reduce peak demand and avoid unnecessary charges. Load data supports efficiency planning and equipment scheduling.	Electricity
Load Factor	Load Factor measures how efficiently a business uses its maximum electrical demand. A higher load factor indicates steady consumption while a low factor suggests costly peaks. Improving load factor helps reduce overall electricity charges.	Electricity
Load Forecasting	Load Forecasting predicts how much energy a business will use in future periods. It is essential for procurement planning and accurate budgeting. Suppliers also use forecasts to plan wholesale purchasing.	General Energy
Load Management	Where sites are flexible as to when they use their electricity. This means that they can schedule their production and shift patterns according to the price of pool electricity. Consumers who can load manage are able to significantly reduce their consumption at the three times in the year when the National Grid takes the Triad maximum demand readings which are used to calculate the transmission charges.	Electricity
Load Profile	A Load Profile shows how a business electricity consumption varies throughout the day. It highlights peak times and operational patterns. Understanding load profile helps improve efficiency and reduce cost.	Electricity
Load Shedding	Load Shedding is the controlled reduction of electricity use to prevent system overload. Some businesses take part in load shedding programmes through demand response schemes. It can provide resilience and cost benefits.	Electricity
Low Voltage (LV)	Low Voltage, normally at 240 or 415 Volts.	Electricity
Low Voltage Supply (LV Supply)	A Low Voltage Supply delivers electricity at standard commercial or domestic voltage levels. Most small and medium businesses operate on LV connections. It is simpler and cheaper than a high voltage supply.	Electricity
Lower Heating Value LHV	Lower Heating Value is a measure of the usable energy in fuel excluding the energy lost in water vapour. It is used in gas efficiency calculations. Understanding LHV helps compare heating technologies and fuel performance.	Gas
Loss Adjustment Factor	A Loss Adjustment Factor accounts for electricity lost during transmission or distribution. It ensures fair billing by adjusting metered data. Businesses usually see its impact only through network charges.	Electricity
Losses Non Technical	Non Technical Losses refer to energy lost through theft meter errors or administrative issues. Reducing these losses improves overall system efficiency. Businesses may see indirect cost impacts through industry charges.	Regulation and Compliance
Low Voltage Directive	The Low Voltage Directive sets safety requirements for electrical equipment connected to the supply network. It ensures safe operation and proper installation standards. Businesses must ensure electrical products meet these rules.	Regulation and Compliance

M

Term	Definition	Category
Meter Point Reference Number (MRPN)	The M Number or MPRN is the unique identifier for a gas supply point. It appears on gas bills and is required when switching suppliers. It helps ensure the correct meter is billed and managed.	Gas
Maximum Authorised Capacity (MAC)	Maximum Authorised Capacity is the highest electrical capacity a site is allowed to import from the network. Exceeding this level can result in penalty charges. Regular reviews help businesses match capacity to real demand and avoid unnecessary costs.	Electricity
Maintenance Load	Maintenance Load is the reduced level of energy usage that occurs when equipment is offline for servicing. It helps businesses plan energy use around operational downtime. Understanding maintenance load supports accurate forecasting.	General Energy
Mandated Meter	A Mandated Meter is a meter required by regulation such as a half hourly meter for high-load sites. It ensures accurate recording of electricity use for settlement and billing. Businesses must comply with mandated metering rules to avoid penalties.	Metering
Market Price	Market Price is the wholesale cost of electricity or gas purchased on the open market. It changes daily based on supply demand weather and global factors. Understanding market price trends helps businesses choose the right procurement strategy.	Billing and Contracts
Market Stabilisation Charge	The Market Stabilisation Charge is applied when customers move from deemed or variable rates to fixed contracts during volatile periods. It protects suppliers from sudden market shifts. Businesses should understand this charge before agreeing a new tariff during high volatility.	Billing and Contracts
Maximum Demand (MD)	Maximum Demand is the highest level of electrical power a site draws during a set period. High demand can lead to extra charges or trigger capacity reviews. Businesses reduce MD by managing equipment startup and avoiding unnecessary peaks.	Electricity
Maximum Export Capacity (MEC)	Maximum Export Capacity is the highest output an onsite generator like solar or CHP is allowed to send back to the grid. It is set by the Distribution Network Operator. Staying within MEC ensures safe and compliant export.	Electricity
Megawatt (MW)	A megawatt is a unit of power equal to one million watts. It measures the rate at which energy is generated or used. Megawatts are typically used for large-scale energy production, such as the output of wind turbines or power stations.	Electricity
Mega Watt Hour (MWh)	A megawatt-hour is the amount of energy used if you consume 1 megawatt of power for one hour. In other words, it measures how much electricity is used over time.	Electricity
Maximum Import Capacity (MIC)	Maximum Import Capacity is the upper limit of electricity a site may take from the grid. It appears on bills and affects standing and capacity charges. Businesses can cut costs by adjusting MIC to match real consumption.	Electricity
Meter Class	Meter Class categorises electricity meters for settlement and billing purposes. It ensures the meter is treated correctly within the industry process. Incorrect meter class can lead to billing errors or compliance issues.	Metering
Microgeneration Certification Scheme (MCS)	The Microgeneration Certification Scheme certifies installers and equipment for small scale renewable systems such as solar panels or heat pumps. MCS approval is often required for grants and export payments. It assures quality and compliance.	Regulation and Compliance
Meter Distribution Zone (MDZ)	A Meter Distribution Zone refers to the regional area a meter belongs to in the gas network. MDZ information helps suppliers and shippers manage supply and pricing. It also affects certain elements of gas transport costs.	Gas
Meter Asset Manager (MAM)	A Meter Asset Manager installs maintains and removes gas meters. They ensure meters meet industry standards and operate safely. Businesses rely on MAM services when upgrading or replacing equipment.	Metering
Meter Asset Provider (MAP)	A Meter Asset Provider owns the physical meter and leases it to the supplier or customer. MAP charges may appear as part of non commodity costs. Understanding MAP roles helps businesses make sense of metering fees.	Metering
Meter Configuration	Meter Configuration describes how a meter is set up including registers and time periods for multi rate tariffs. Incorrect configuration can lead to inaccurate billing. Reviewing configuration ensures the meter matches operational needs.	Metering
Meter Multiplier	The Meter Multiplier is used to convert raw meter readings into actual consumption values especially for CT or large gas meters. It ensures accurate billing by scaling readings correctly. Errors in the multiplier can cause major billing discrepancies.	Metering
Meter Operator (MOP)	A Meter Operator installs maintains and tests electricity meters for commercial sites. MOP contracts are mandatory for half hourly meters. Choosing the right MOP ensures good data quality and reduces metering issues.	Metering
Meter Point Administration Number (MPAN)	The MPAN is the unique identifier for an electricity supply point. It appears on electricity bills and is required when switching suppliers. It ensures the correct meter is registered to the correct site.	Electricity
Meter Point Administration Service (MPAS)	Organisation that holds all information of MPANs. www.mpas-online.co.uk	Electricity
Metering Dispute	A Metering Dispute arises when meter readings or technical data appear incorrect. It often involves the supplier the MOP or the data collector. Resolving disputes quickly helps avoid inaccurate billing.	Metering
Microbusiness	A Microbusiness is defined by Ofgem as a company with low consumption or limited staff and turnover. Microbusinesses receive additional regulatory protections in the energy market. They typically access simpler and shorter contract types.	Regulation and Compliance
Microgeneration	Microgeneration refers to small scale onsite energy production such as solar panels wind turbines or small CHP units. It reduces reliance on the grid and lowers energy costs. Businesses often use microgeneration to support sustainability goals.	Electricity
MOP Contract	A MOP Contract covers the installation maintenance and data collection service for half hourly meters. Businesses must have an active MOP contract in place separately from their supply agreement. Selecting the right MOP helps ensure accurate and reliable data.	Metering

N

Term	Definition	Category
National Grid ESO	National Grid ESO operates the electricity system and ensures supply and demand remain balanced at all times. It manages generation dispatch grid stability and market services. Businesses interact with ESO costs through non commodity charges.	Electricity
National Transmission System (NTS)	The National Transmission System is the high pressure gas network that transports gas across the country. It delivers gas to local distribution zones before it reaches businesses. NTS charges form part of commercial gas bills.	Gas
Natural Gas Liquids (NGL)	Natural Gas Liquids are hydrocarbons extracted from natural gas such as propane or butane. They are used in heating industrial processes and fuel production. NGL availability can influence wholesale gas markets.	Gas
Network Capacity	Network Capacity refers to how much electricity or gas a local network can supply safely. Limited capacity can restrict new connections or load increases. Businesses planning expansions must consider local capacity availability.	Electricity
Network Charge	A Network Charge covers the cost of transporting electricity or gas through national and local grids. These charges make up a significant part of business energy bills. They vary by region usage pattern and meter type.	Billing and Contracts
Network Constraint	A Network Constraint occurs when the network infrastructure cannot support required energy flows. It may lead to higher balancing costs or delays in connecting new equipment. Constraints can affect regional pricing and expansion plans.	Electricity
Network Losses	Network Losses refer to energy lost during transmission or distribution. They are included in supplier costs and affect business bills indirectly. Minimising losses supports system efficiency and fairness.	Electricity
Network Operator	A Network Operator manages either the electricity distribution system or the gas distribution system in a region. They maintain infrastructure ensure safety and handle connection requests. Charges from network operators appear in non commodity costs.	Electricity
New Connection	A New Connection is the process of linking a property or site to the electricity or gas network. It may require capacity studies metering arrangements and infrastructure upgrades. The process is managed by the relevant network operator.	Regulation and Compliance
Non Commodity Costs	Non Commodity Costs are charges that are not related to the wholesale price of energy. They include network costs balancing charges and environmental levies. These costs now make up a large portion of business energy bills.	Billing and Contracts
Non Half Hourly Meter (NHH)	A Non Half Hourly Meter records electricity usage in regular intervals rather than every 30 minutes. It is common for smaller business sites. NHH meters eventually convert to smart or half hourly under industry reforms.	Metering
Non Half Hourly Settlement	Non Half Hourly Settlement is the industry process used to calculate consumption for NHH meters. It uses estimated profiles rather than precise interval data. It will be phased out as smart metering expands.	Metering
Non Standard Meter	A Non Standard Meter is a meter with special configuration or load characteristics. It may require tailored tariffs or additional metering support. These meters are common in industrial or complex commercial sites.	Metering
Notice of Objection	A Notice of Objection is issued by a supplier to block a customer switch usually due to outstanding debt or contract issues. Ofgem rules restrict when objections can be raised. Resolving the cause of the objection allows the switch to proceed.	Billing and Contracts
Notification Period	A Notification Period is the time a business must give its supplier before the end of a contract to avoid automatic moves to out of contract rates. Missing the window can lead to higher costs. Keeping track of renewal dates prevents issues.	Billing and Contracts
Nuclear RAB Levy	The Nuclear RAB Levy is a charge added to electricity bills to help fund new nuclear power projects under the Regulated Asset Base model. It allows consumers to contribute to construction costs while the plant is being built rather than waiting until it generates electricity. The levy reduces financial risk for developers and aims to lower long term nuclear project costs. Businesses will see this charge included within non commodity costs on electricity bills.	Regulation and Compliance

O

Term	Definition	Category
Ofgem (Office of Gas and Electricity Markets)	Ofgem is the energy regulator responsible for overseeing electricity and gas markets in the UK. It protects consumers enforces rules on suppliers and sets policies that affect pricing and competition. Businesses rely on Ofgem regulations for fair treatment transparent billing and complaint resolution.	Regulation and Compliance
Off Peak Electricity	Off Peak Electricity refers to cheaper electricity rates during quieter periods such as overnight or weekends. Businesses can lower costs by shifting high usage tasks into off peak windows. This tariff structure supports grid balancing and demand reduction.	Billing and Contracts
Offtake	Offtake refers to the amount of energy taken from a transmission or distribution system at a given point. It helps determine network charges and capacity requirements. Monitoring offtake is important for large users with varying demand.	Electricity
Operational Consumption	Operational Consumption refers to the energy used by equipment and processes during normal business activity. It excludes standby or shutdown loads. Monitoring operational consumption helps identify efficiency improvements.	General Energy
Out of Contract Rates	Out of Contract Rates are high default prices charged when a contract expires without renewal or switching. These rates are significantly more expensive than agreed tariffs. Avoiding out of contract rates is essential for cost control.	Billing and Contracts
Outage	An Outage is a temporary loss of electricity or gas supply due to faults maintenance or network issues. Businesses may be affected by planned or unplanned outages depending on network conditions. Outage reporting helps suppliers maintain resilience.	Electricity
Overvoltage	Overvoltage occurs when the electrical supply exceeds the normal operating voltage. It can damage equipment reduce lifespan and cause safety issues. Businesses should investigate repeated overvoltage events through their supplier or DNO.	Electricity
OFGEM Price Cap	The Ofgem Price Cap limits what suppliers can charge domestic customers per unit of energy. Although it does not apply to business tariffs it can influence wholesale market behaviour. Business customers may still monitor it for market trends.	Regulation and Compliance
Onsite Generation	Onsite Generation refers to producing electricity at a business location using technology such as solar CHP or small wind systems. It helps reduce grid reliance and cut long term energy costs. Many businesses pair onsite generation with battery storage.	Electricity
Open Market Tariff	An Open Market Tariff is a contract sold at current wholesale influenced rates rather than long term fixed prices. It offers flexibility but exposes businesses to market volatility. It is more common in flexible procurement arrangements.	Billing and Contracts
Operational Carbon	Operational Carbon is the carbon dioxide emitted from daily business activities including energy use. Reducing operational carbon is a key part of sustainability strategies. Businesses track it for reporting frameworks such as SECR.	Regulation and Compliance

P

Term	Definition	Category
Pass Through Charges	Pass Through Charges are non commodity costs that a supplier does not fix in the contract and instead passes directly to the customer at the true industry rate. They include network charges balancing costs environmental levies and metering fees. Pass through structures offer transparency but can lead to fluctuating monthly bills depending on system conditions and regulatory changes.	Billing and Contracts
Power Purchase Agreement (PPA)	A Power Purchase Agreement is a long term contract where a business buys electricity directly from a generator often at a discounted stable rate. PPAs support renewable investment and help businesses lock in predictable energy costs. They are popular for sustainability driven organisations.	Electricity
Peak Demand	Peak Demand is the highest level of electricity a business uses during a specific period. High peaks can lead to increased capacity and demand charges. Managing peak demand helps reduce overall energy costs.	Electricity
Peak Load	Peak Load refers to the maximum amount of power required by a site at any moment. Businesses aim to reduce peak load to avoid network penalties and improve efficiency. Equipment scheduling plays a key role in peak load management.	Electricity
Penalty Charge	A Penalty Charge is applied when a business breaches certain contract conditions such as exceeding capacity or late payment. These charges protect suppliers against risk and administrative costs. Understanding contract terms helps avoid unnecessary penalties.	Billing and Contracts
Pipeline Gas	Pipeline Gas refers to natural gas delivered through the UK transmission and distribution network. It is the main fuel source for most commercial heating systems. Pipeline gas prices depend on global markets and regional capacity.	Gas
Power Factor	Power Factor measures how effectively electrical equipment uses the supplied power. Poor power factor can result in additional charges for reactive power. Improving power factor enhances efficiency and reduces strain on equipment.	Electricity
Power Factor Correction	Power Factor Correction involves installing equipment to improve the efficiency of electrical systems. It helps reduce reactive power usage and avoid charges. Businesses with large motors or machinery often benefit from correction solutions.	Electricity
Power Purchase	Power Purchase refers to the procurement of electricity from suppliers or generators. Businesses can choose fixed flexible or direct purchase arrangements depending on risk appetite. Effective power purchasing helps manage long term energy costs.	Billing and Contracts
Power Quality	Power Quality describes the stability and reliability of the electrical supply including voltage harmonics and interruptions. Poor power quality can damage equipment or disrupt operations. Monitoring power quality helps prevent costly downtime.	Electricity
Prepayment Meter (PPM)	A Prepayment Meter requires businesses to pay for energy before using it typically by topping up credit. It offers spending control but usually comes with higher unit rates. PPMs are more common in microbusiness settings.	Metering
Pressure Drop	Pressure Drop refers to the reduction in gas pressure as it travels through pipes. Excessive pressure drop can affect appliance performance. Engineers consider pressure drop when designing business gas installations.	Gas
Profile Class	A Profile Class categorises electricity meters based on typical usage patterns. Smaller businesses often fall into standard profile classes which influence settlement and billing. Moving to half hourly metering provides more accurate profiling.	Metering
Prosumer	A Prosumer is a business that both consumes and produces electricity such as with solar or CHP systems. Prosumers may export surplus power back to the grid. This supports energy independence and sustainability.	Electricity
Periodic Transmission Review (PTR)	A Periodic Transmission Review assesses the costs and performance of the electricity transmission system. It influences how transmission charges are set. These costs are passed through to commercial customers on their bills.	Regulation and Compliance

Q

Term	Definition	Category
Quadrature Load	Quadrature Load refers to the reactive component of electricity that does not perform useful work but is required to maintain voltage on the network. High quadrature load can lead to reactive power charges for some businesses. Managing equipment efficiency helps reduce unnecessary reactive demand.	Electricity
Quality of Supply	Quality of Supply describes how reliable and consistent the electricity or gas supply is for a business. It includes factors like voltage stability outages and frequency variations. Good quality of supply reduces equipment failures and operational downtime.	Electricity
Quarter Hourly Data	Quarter Hourly Data records electricity usage every fifteen minutes providing a more detailed profile than half hourly data. It is used in advanced analytics and for some flexible energy contracts. Businesses can use this data to pinpoint inefficiencies and manage load more precisely.	Metering

R

Term	Definition	Category
Regulated Asset Base (RAB)	The Regulated Asset Base is a funding model that allows energy infrastructure such as nuclear projects to recover costs from consumers during construction. It reduces financial risk for developers and encourages long term investment. Businesses see RAB costs included within non commodity charges.	Regulation and Compliance
Reactive Power	Reactive Power is the portion of electricity that supports voltage rather than performing useful work. High reactive power levels can trigger extra charges for some commercial sites. Improving power factor helps reduce reactive demand and associated fees.	Electricity
Reconciliation Charge	A Reconciliation Charge is applied when suppliers adjust previous bills to match accurate metering or settlement data. It corrects under or overcharging from earlier estimates. Businesses should review reconciliation statements to ensure accuracy.	Billing and Contracts
Red Zone DUoS Rate	The Red Zone Rate is the highest cost period in Distribution Use of System charges typically during early evening peak demand. Businesses on pass through contracts pay more for consumption in this window. Reducing usage in red zones helps cut electricity costs.	Electricity
Regional Network Charge	A Regional Network Charge varies depending on the location of a business and reflects local infrastructure costs. Different areas of the UK have different charges for electricity distribution. These charges form part of non commodity costs.	Electricity
Renewable Energy Certificate (REC)	A Renewable Energy Certificate verifies that electricity has been generated from renewable sources. Businesses use RECs to demonstrate sustainability commitments. Suppliers may bundle RECs into green tariffs.	Electricity
Renewable Energy Certificate (REC)	A REGO certificate proves that a unit of electricity was generated from a renewable source such as wind solar or hydro. Suppliers use REGOs to demonstrate the renewable content of their tariffs and provide transparency to customers. Businesses often request REGOs when choosing green energy products to support sustainability reporting and environmental goals.	Electricity
Renewable Heat Incentive (RHI)	The Renewable Heat Incentive was a government scheme that provided payments to businesses generating heat from renewable sources such as biomass or heat pumps. Although closed to new applicants existing participants still receive payments. It encouraged long term investment in low carbon heat.	Regulation and Compliance
Renewables Obligation (RO)	The Renewables Obligation requires suppliers to source a portion of electricity from renewable generators. Costs are recovered through RO charges on business bills. It supports investment in renewable energy across the UK.	Regulation and Compliance
Residual Charge	A Residual Charge is applied to recover remaining network costs that are not linked to consumption. It is part of the Targeted Charging Review reforms. Businesses pay residual charges regardless of usage level.	Billing and Contracts
Resistance Losses	Resistance Losses are electrical losses that occur when energy travels through cables and components. They increase with distance and load. These losses form part of overall network efficiency costs.	Electricity
Retrofit Upgrade	A Retrofit Upgrade involves installing new technology or equipment to improve energy efficiency in an existing building. Examples include LED lighting insulation or upgraded controls. Retrofits help reduce long term operating costs.	General Energy
Rollover Contract	A Rollover Contract activates when a business fails to renew or switch before the contract end date. These contracts usually have higher rates and limited flexibility. Staying aware of renewal dates helps avoid rollover charges.	Billing and Contracts
Reactive Power Charge	A Reactive Power Charge is applied to sites with low power factor or high reactive demand. It encourages businesses to use electricity more efficiently. Installing correction equipment helps reduce these charges.	Electricity

S

Term	Definition	Category
Seasonal Demand	Seasonal Demand refers to how energy usage changes throughout the year due to weather and business activity. Gas consumption typically peaks in winter while electricity demand may rise during cooling periods. Understanding seasonal demand helps improve forecasting and procurement.	General Energy
Seasonal Time of Day (STOD Tariff)	An STOD Tariff charges different electricity rates depending on both the time of day and the season. It encourages businesses to reduce usage during high demand periods. STOD tariffs can offer savings for sites that can shift consumption.	Billing and Contracts
Streamlined Energy and Carbon Reporting (SECR)	SECR is a mandatory reporting scheme requiring qualifying businesses to disclose energy consumption and carbon emissions annually. It promotes transparency and encourages reduction of environmental impact. Non compliance can lead to financial penalties.	Regulation and Compliance
Settlement Data	Settlement Data is the meter and consumption information used within the energy market to calculate accurate financial settlements. It ensures suppliers pay correctly for the energy their customers use. High quality settlement data reduces billing disputes.	Metering
Shape Risk	Shape Risk is the risk that actual energy consumption will differ from forecast patterns used to price a fixed contract. Suppliers factor shape risk into fixed rates to cover unexpected usage profiles. Businesses with predictable consumption help reduce shape risk costs.	Billing and Contracts
Shipper	A Shipper arranges for gas to be transported through the national system to suppliers and customers. Although businesses do not deal with shippers directly their costs form part of gas pricing. Shippers ensure secure and efficient gas delivery.	Gas
Shortfall Charge	A Shortfall Charge applies when a business or generator does not meet contracted levels of output or reduction. These charges protect system reliability and ensure compliance. Understanding shortfall risks helps businesses manage obligations.	Billing and Contracts
Smart Meter	A Smart Meter automatically sends usage data to the supplier and provides more accurate billing. It can also show real time consumption through an in premises display or online portal. Smart meters reduce estimated bills and support energy management.	Metering
SME Tariff	An SME Tariff is designed for small and medium sized businesses with lower energy consumption. It usually offers simpler pricing and shorter contract lengths compared to I and C tariffs. SME tariffs help businesses manage costs without complexity.	Billing and Contracts
Solar PV	Solar PV refers to photovoltaic panels that convert sunlight into electricity. Businesses use solar PV to cut electricity bills and reduce carbon emissions. Pairing PV with battery storage increases onsite usage and savings.	Electricity
Spinning Reserve	Spinning Reserve is backup generation that runs at low output so it can respond quickly to sudden demand changes. It helps maintain grid stability and prevent outages. Its cost contributes to non commodity charges on electricity bills.	Electricity
Spot Price	The Spot Price is the real time wholesale price of electricity or gas for immediate delivery. It changes rapidly based on demand supply and market events. Businesses on flexible contracts may be exposed to spot price movements.	Billing and Contracts
Standing Charge	A Standing Charge is a fixed daily cost that covers network access metering and supplier admin. It applies regardless of how much energy is used. Reviewing standing charges helps businesses understand total contract cost.	Billing and Contracts
Sub Meter	A Sub Meter measures energy use for specific areas or equipment within a building. It helps allocate costs identify inefficiencies and monitor performance. Sub metering is common in multi tenant sites and energy audits.	Metering
Supplier of Last Resort SoLR	A Supplier of Last Resort is appointed when an energy supplier fails. It ensures continuity of supply for affected businesses. Customers are moved to the SoLR until they choose a new contract.	Regulation and Compliance
Supply Capacity	Supply Capacity refers to the maximum amount of electricity a site can access from the network. It influences standing charges and capacity related fees. Adjusting capacity to match actual demand helps reduce costs.	Electricity
Supply Number	The Supply Number is the identification code for an electricity meter shown on the bill. It helps suppliers and engineers locate and verify the correct supply point. Accurate supply numbers ensure smooth switching and billing.	Metering
System Operator	A System Operator manages the real time flow of electricity or gas to ensure balance and reliability. In the UK this role is performed by National Grid ESO for electricity. System operator services form part of non commodity charges.	Electricity

T

Term	Definition	Category
Targeted Charging Review (TCR)	The Targeted Charging Review is an Ofgem reform that changes how residual network charges are applied. It aims to make charges fairer and more consistent across all users. Businesses now pay residual charges through fixed bands rather than usage-based rates.	Regulation and Compliance
Tariff	A Tariff is the pricing structure for a business electricity or gas contract. It includes unit rates standing charges and other fees. Choosing the right tariff helps control costs and match operational needs.	Billing and Contracts
Telemeter	A Telemeter is a meter that transmits readings automatically to the supplier. It reduces manual checks and improves billing accuracy. Telemetering supports smoother switching and settlement processes.	Metering
Therm	A Therm is a unit of heat energy used mainly in gas calculations. It measures the energy content of natural gas and supports billing conversions. Businesses rarely see therms on bills but they help explain gas usage history.	Gas
Three Phase Supply	A Three Phase Supply delivers electricity across three alternating currents and is used for high load equipment. It provides more stability and capacity than single phase supply. Larger commercial sites typically require three phase connections.	Electricity
Time of Use Tariff (TOU)	A Time of Use Tariff charges different rates depending on the time of day. Businesses can save money by shifting energy use to cheaper periods. TOU tariffs support grid balancing and demand reduction.	Billing and Contracts
Total Final Consumption	Total Final Consumption measures all energy used by a business including electricity heating and transport fuel. It is used for sustainability tracking and carbon reporting. Lowering final consumption helps reduce operating costs and emissions.	General Energy
Transportation Charge	A Transportation Charge is applied to cover the cost of moving gas through the national and regional pipeline networks. It forms part of business gas bills and varies depending on distance capacity and system demand. Transportation charges ensure safe and efficient delivery of gas to commercial sites.	Gas
Transmission Losses Line Losses	Transmission Losses also called line losses refer to the energy lost as electricity travels across the high voltage transmission network. Losses occur due to resistance and heat within cables and equipment. The cost of these losses is included within non commodity charges and affects all business electricity bills.	Electricity
Transmission Peak Rate (TPR)	The Transmission Peak Rate refers to higher charges applied during periods of high national electricity demand. These costs reflect pressure on the transmission network. Businesses can reduce TPR exposure by avoiding peak times.	Electricity
Transmission Use of System (TUoS)	Transmission Use of System charges cover the cost of operating and maintaining the national high voltage electricity network. These charges are paid by suppliers and passed on to business customers through their bills. TUoS costs help ensure the transmission system remains reliable and capable of meeting national demand.	Electricity
Transmission Charge	A Transmission Charge covers the cost of transporting electricity across the national high voltage network. It is included in business energy bills as part of non commodity costs. These charges support infrastructure maintenance and system reliability.	Electricity
Transmission Constraint	A Transmission Constraint occurs when the high voltage network cannot carry electricity freely between regions. This can increase balancing costs and influence wholesale prices. Large businesses may feel the impact through pass through charges.	Electricity
Triad	A Triad is one of the three highest national peak demand periods during winter evenings. Historically businesses could cut costs by reducing usage during potential triad periods. Recent reforms have changed triad incentives but peak management remains important.	Electricity

U

Term	Definition	Category
UK Emissions Trading Scheme (UK ETS)	The UK ETS is a carbon trading system that sets a cap on emissions for energy intensive businesses. Companies must hold allowances for every tonne of carbon they emit encouraging reductions over time. The scheme influences carbon reporting and long term sustainability planning.	Regulation and Compliance
Unaccounted for Gas (UAG)	Unaccounted for Gas refers to the difference between measured gas entering the network and the amount billed to customers. It includes losses measurement errors and theft. UAG costs are shared across gas users through industry processes.	Gas
Unit Price	The Unit Price is the cost a business pays for each kilowatt hour of electricity or gas used. It forms the main variable part of the bill and changes depending on contract type market conditions and supplier margins. Understanding the unit price helps businesses compare offers and forecast overall energy spend.	Billing and Contracts
Unmetered Supply	An Unmetered Supply is an electricity connection without a meter typically used for street lighting signage or telecoms equipment. Charges are based on estimated usage rather than actual readings. Businesses with unmetered assets must register them with the DNO.	Metering
Utility Broker	A Utility Broker helps businesses find energy water or telecoms contracts by comparing market options. They assist with tendering negotiation and contract management. Transparency over broker fees is important for fair comparisons.	Billing and Contracts
Utility Scale Generation	Utility Scale Generation refers to large energy projects such as wind farms solar parks or major gas plants. These assets supply power directly to the grid and influence national prices. Businesses may purchase output from utility scale projects through PPAs.	Electricity
Usage Profile	A Usage Profile shows how electricity or gas consumption changes over time. It helps businesses identify peak periods and efficiency opportunities. Accurate profiles support better procurement and operational planning.	General Energy
Total Final Consumption	Total Final Consumption measures all energy used by a business including electricity heating and transport fuel. It is used for sustainability tracking and carbon reporting. Lowering final consumption helps reduce operating costs and emissions.	General Energy
Transportation Charge	A Transportation Charge is applied to cover the cost of moving gas through the national and regional pipeline networks. It forms part of business gas bills and varies depending on distance capacity and system demand. Transportation charges ensure safe and efficient delivery of gas to commercial sites.	Gas
Transmission Losses Line Losses	Transmission Losses also called line losses refer to the energy lost as electricity travels across the high voltage transmission network. Losses occur due to resistance and heat within cables and equipment. The cost of these losses is included within non commodity charges and affects all business electricity bills.	Electricity
Transmission Peak Rate (TPR)	The Transmission Peak Rate refers to higher charges applied during periods of high national electricity demand. These costs reflect pressure on the transmission network. Businesses can reduce TPR exposure by avoiding peak times.	Electricity
Transmission Use of System (TUoS)	Transmission Use of System charges cover the cost of operating and maintaining the national high voltage electricity network. These charges are paid by suppliers and passed on to business customers through their bills. TUoS costs help ensure the transmission system remains reliable and capable of meeting national demand.	Electricity
Transmission Charge	A Transmission Charge covers the cost of transporting electricity across the national high voltage network. It is included in business energy bills as part of non commodity costs. These charges support infrastructure maintenance and system reliability.	Electricity
Transmission Constraint	A Transmission Constraint occurs when the high voltage network cannot carry electricity freely between regions. This can increase balancing costs and influence wholesale prices. Large businesses may feel the impact through pass through charges.	Electricity
Triad	A Triad is one of the three highest national peak demand periods during winter evenings. Historically businesses could cut costs by reducing usage during potential triad periods. Recent reforms have changed triad incentives but peak management remains important.	Electricity

V

Term	Definition	Category
Value Added Tax (VAT)	Value Added Tax is a government tax applied to business energy bills. Most commercial users pay the standard rate while eligible charities and low usage sites may qualify for a reduced rate. Understanding VAT rules helps ensure accurate billing and compliance.	Billing and Contracts
Variable Rate Tariff	A Variable Rate Tariff is an energy contract where the unit rate changes in line with market conditions. Prices can move up or down at any time which creates both risk and opportunity. Businesses on variable tariffs need to monitor the market closely to avoid unexpected cost increases.	Billing and Contracts
Voltage	Voltage is the electrical pressure that pushes current through circuits and equipment. Businesses operate on either low voltage or high voltage supplies depending on site size and load. Understanding voltage levels is important when planning upgrades or installing large machinery.	Electricity
Voltage Dip	A Voltage Dip is a short drop in voltage that can affect sensitive equipment or disrupt processes. It may be caused by faults switching operations or high network demand. Repeated dips may require investigation by the supplier or DNO.	Electricity
Voltage Optimisation	Voltage Optimisation is a technology that reduces incoming voltage to the optimal level for equipment. It helps cut electricity consumption and improves equipment lifespan. This solution is common in commercial buildings with consistently high voltage supply.	Electricity
Voltage Transformer	A Voltage Transformer reduces high voltage electricity to lower levels suitable for metering and protection systems. It ensures accurate measurement of consumption at large commercial or industrial sites. Voltage transformers are essential for high voltage and CT metering arrangements.	Electricity
Volumetric Charge	A Volumetric Charge is a cost based on the amount of electricity or gas a business uses. It applies alongside fixed charges such as standing charges. Reducing consumption directly lowers the volumetric element of the bill.	Billing and Contracts
VPP Virtual Power Plant	A Virtual Power Plant is a connected network of distributed energy assets such as batteries solar and flexible loads. It allows businesses to participate in balancing services and earn revenue. VPPs support grid stability and help integrate renewable energy.	Electricity

W

Term	Definition	Category
Watt	A Watt is the basic unit of power that measures the rate of energy use. Electrical appliances are rated in watts to show how much electricity they consume. Understanding wattage helps businesses manage load and reduce peak demand.	Electricity
Watt Hour (Wh)	A Watt Hour represents one watt of power used for one hour. It is the foundation of the kilowatt hour which appears on energy bills. Watt hours help explain how small amounts of energy usage add up over time.	General Energy
Weather Correction Factor	A Weather Correction Factor adjusts gas consumption data to account for changes in outdoor temperature. It helps compare usage year to year more accurately. Businesses use weather correction in audits and consumption analysis.	Gas
Whole Current Meterering	Whole Current Metering is used for smaller commercial electricity supplies where the meter directly measures the full electrical load without external transformers. It is common for low to medium demand sites such as shops offices and small industrial units. Whole current meters are simpler to install and maintain compared to CT metering and usually support smart and automated data collection.	Metering
Wholesale Market	The Wholesale Market is where suppliers buy electricity and gas before selling it to businesses. Prices change frequently based on supply demand and global events. Wholesale trends strongly influence business contract rates.	Billing and Contracts
Wind Generation	Wind Generation refers to producing electricity from wind turbines. It is one of the UK’s largest renewable sources contributing to lower carbon intensity. Businesses may purchase wind backed tariffs or invest in onsite wind systems.	Electricity
Winter Peak Demand	Winter Peak Demand describes the highest national usage periods during cold months. These peaks influence pricing balancing costs and capacity requirements. Businesses can reduce exposure by managing consumption during winter evenings.	General Energy
Wire Losses	Wire Losses are small amounts of electricity lost as heat when power travels through cables. These losses are included in network costs paid by businesses. Reducing distance and improving cabling helps minimise losses in local installations.	Electricity
Working Gas Capacity	Working Gas Capacity refers to the amount of gas that can be stored and withdrawn from UK storage facilities. It helps manage seasonal demand fluctuations and improves security of supply. Storage levels can influence wholesale gas pricing.	Gas

X

Term	Definition	Category
Xoserve	Xoserve manages the central data services for the UK gas industry including meter points consumption data and settlement processes. It ensures accurate information is shared between suppliers shippers and network operators. Businesses rely on Xoserve data for correct billing and smooth switching.	Gas
X Capacity Band	An X Capacity Band is a classification used in network or transport charging models to group sites based on their capacity needs. It helps determine fixed charges and non commodity costs. Accurate banding ensures fair billing.	Electricity

Y

Term	Definition	Category
Year Ahead Price	The Year Ahead Price is the forecast wholesale cost of electricity or gas for delivery over the next twelve months. It is commonly used in procurement strategies and helps businesses decide when to lock in fixed rates. Monitoring the year ahead price provides insight into long term market trends.	Billing and Contracts
Yearly Consumption	Yearly Consumption is the total amount of electricity or gas a business uses over a full twelve month period. It is used to size contracts assess efficiency and benchmark performance against similar sites. Accurate yearly consumption data improves budgeting and procurement decisions.	General Energy
Yield from Generation	Yield from Generation refers to the total energy produced by onsite systems such as solar panels or CHP units. It helps assess the performance and financial return of renewable investments. Higher yields reduce reliance on grid electricity and support sustainability goals.	Electricity
Y Factor Adjustment	A Y Factor Adjustment is used in some regulated charging models to account for inflation or cost changes across the network. It affects certain non commodity charges on business energy bills. Understanding these adjustments helps explain small annual pricing shifts.	Regulation and Compliance

Z

Term	Definition	Category
Zero Carbon Electricity	Zero Carbon Electricity refers to electricity generated without producing carbon emissions such as wind solar hydro or nuclear. Businesses choose zero carbon tariffs to reduce their environmental impact and support sustainability goals. It also helps improve carbon reporting accuracy.	Electricity
Zero Export System	A Zero Export System allows onsite generation such as solar PV to power a building without exporting surplus electricity back to the grid. This is used when export connections are limited or not permitted. It helps maximise onsite energy use.	Electricity
Zero Rated VAT	Zero Rated VAT applies to specific energy uses that qualify for a zero per cent VAT charge such as for certain charities or mixed use premises with low consumption. Businesses must meet strict criteria to receive zero rated VAT. Correct application reduces energy costs.	Billing and Contracts
Zone Charge	A Zone Charge refers to regional pricing variations for electricity or gas based on network zones. Charges differ depending on location infrastructure and demand. Businesses see zone charges reflected within their non commodity costs.	Billing and Contracts
Zone Meter	A Zone Meter measures gas or electricity usage in specific network zones for allocation and balancing purposes. It supports settlement processes and accurate cost distribution across regions. Businesses do not interact with zone meters directly but pay associated costs in their bills.	Metering
Zonal Pricing	Zonal Pricing is a system where energy prices vary by geographic zone based on supply and demand conditions. It encourages efficient use of network capacity and can reduce congestion. Businesses in constrained zones may face higher charges.	Billing and Contracts

A

Term	Definition	Category
AC (Alternating Current)	AC is the standard form of electricity used in the UK and changes direction many times per second. It is efficient for long distance transmission and powers most commercial equipment.	Electricity
AQ (Annual Quantity)	AQ is the expected yearly gas consumption agreed with the supplier. It helps forecast wholesale purchasing and maintain accurate contract pricing.	Gas
Active Power/Real Power	Active Power is the usable electricity that performs real work such as powering lighting and machinery. It is measured in kilowatts and forms the basis of most energy charges.	Electricity
Adder (Supplier Margin)	An Adder is the supplier margin added to wholesale energy costs to form the final unit rate. Understanding adders helps compare quotes transparently.	Billing and Contracts
Adjustment Factor	The Adjustment Factor converts gas volume in cubic metres into kilowatt hours for accurate billing. It accounts for changes in temperature and pressure.	Gas
Admin Fee	Admin Fees are non energy charges covering tasks like billing and account management. Reviewing them helps avoid unnecessary costs.	Billing and Contracts
Aggregation	Aggregation combines multiple meters or sites to increase buying power and secure better energy prices. It is common for multi site businesses.	General Energy
Agreed Capacity (Maximum Import Capacity)	Also known as Available Supply Capacity (ASC), Agreed Capacity is the maximum electrical load a site is allowed to draw from the network. Exceeding it triggers excess capacity charges.	Electricity
Air Source Heat Pump (ASHP)	An ASHP is a low carbon heating system that extracts heat from the air. It helps reduce running costs and improve EPC ratings.	Gas
Amber Alert	An Amber Alert signals that the electricity grid is under pressure but still operational. It warns businesses of potential price increases or demand response actions.	Electricity
Ancillary Services	Ancillary Services support grid stability through functions like frequency response and reserve power. They help maintain reliable electricity supply.	Electricity
Annualised Cost	Annualised Cost is the full yearly cost of an energy contract including unit rates and all fees. It helps businesses compare quotes accurately.	Billing and Contracts
Apex Load	Apex Load is the highest peak in electricity demand at a site. Reducing peak load can lower charges and improve efficiency.	Electricity
Approved Meter	An Approved Meter is certified for accurate energy measurement and is required for billing. It ensures fair and compliant energy charges.	Regulation and Compliance
Asset Load	Asset Load refers to the electrical demand of individual equipment items. Managing asset load improves efficiency and reduces overload risks.	Electricity
ATW (Above Tolerance Warning)	ATW alerts indicate energy consumption above contract tolerance levels. Persistent breaches may trigger supplier repricing.	Billing and Contracts
Availability (KVA)	Availability (kVA) or Agreed Capacity refers to the limit of capacity for a site. E.g. if a site has an Availability of 150 kVA then maximum demand should not exceed that figure at any time. It is set and charged by the local Distribution Network Operator (DNO), according to the kVA of a premise. This fee covers investment and maintenance of the electricity network and can also be called the Capacity Charge. Customers pay a fee (per unit) according to the agreed capacity for that site. In theory, maximum demand should not exceed the agreed capacity at any time.	Electricity
Availability Charge	An Availability Charge is a cost applied for the electrical capacity reserved for a site. It is based on Agreed Capacity settings.	Electricity
Average Rate	Average Rate is the blended cost of energy including unit rates and daily charges. It offers a simple way to compare contracts.	Billing and Contracts
AVCO (Average Consumption)	AVCO represents the typical consumption level over a set period. It assists in forecasting and identifying unusual usage patterns.	General Energy
AWC (Allowable Weather Correction)	AWC accounts for how temperature changes affect gas demand. It helps improve accuracy when analysing seasonal gas usage.	Gas

B

Term	Definition	Category
Balancing Mechanism (BM)	The Balancing Mechanism is used by National Grid ESO to keep electricity supply and demand in real time balance. Generators and large energy users can be instructed to increase or reduce output to stabilise the system. Costs from the BM influence non commodity charges on business electricity bills.	Electricity
Baseline Emissions	Baseline Emissions refer to the starting point used to measure a business carbon reduction progress. They are usually calculated over a full year and used for reporting schemes like ESOS or SECR. A clear baseline helps track improvements and set realistic sustainability targets.	Regulation and Compliance
Base Load	Base Load is the minimum constant level of electricity a business consumes throughout the day. It reflects essential equipment such as refrigeration servers lighting or machinery that cannot be switched off. Reducing base load is one of the quickest ways to cut energy costs.	Electricity
Battery	Two or more electrical cells joined together which produce and store electricity. See more for commercial battery storage.	Electricity
Biogas	Biogas is a renewable gas produced from organic waste through anaerobic digestion. It offers a lower carbon alternative to natural gas and is sometimes supplied through Green Gas Certificates. Businesses use biogas to reduce environmental impact without changing equipment.	Gas
Billing Demand	Billing Demand is the highest measured electricity demand used to calculate certain charges for large sites. It influences capacity planning and may trigger additional fees if limits are exceeded. Monitoring demand helps businesses avoid unnecessary peak usage.	Electricity
Biomass	Biomass refers to organic material used as fuel typically wood pellets or agricultural waste. It provides a renewable heat source and can help businesses lower carbon emissions. Biomass systems are often used in commercial buildings with high heating demand.	General Energy
British Electricity Trading And Transmission Arrangements (BETTA)	The BETTA arrangement was introduced in 2005 to create a single wholesale electricity market for Great Britain. It replacing NETA which did not cover Scotland.	Electricity
Brown Power	Brown Power is electricity generated from non renewable sources such as coal or gas. It does not carry renewable certificates and therefore has a higher carbon intensity. Some suppliers label Brown Power separately from green or renewable products.	Electricity
BSC (Balancing and Settlement Code)	The Balancing and Settlement Code governs how electricity is metered traded and financially reconciled across the UK. It ensures accuracy fairness and consistency in the electricity market. Businesses mainly encounter BSC costs through non commodity charges.	Electricity
Budget Billing	Budget Billing is a payment method where businesses pay a fixed monthly amount based on estimated annual usage. It smooths costs over the year and reduces bill fluctuations. Suppliers review the amount periodically to ensure it reflects actual consumption.	Billing and Contracts
Bulk Supply	Bulk Supply refers to high volume energy deliveries usually for large industrial processes or district energy systems. Businesses with bulk usage may access special pricing or contract structures. It often requires additional infrastructure or metering.	General Energy
Burner Tip Price	Burner Tip Price is the final cost of gas when it reaches the point of use inside a building. It includes the wholesale rate network charges and any supplier margin. Understanding this cost helps businesses compare gas efficiency and heating performance.	Gas
Business Day Rate	The Business Day Rate is the electricity unit rate charged during normal operating hours on multi rate tariffs. It is often higher than night rates due to increased demand on the grid. Choosing the right tariff helps reduce day rate exposure.	Billing and Contracts
Business Night Rate	The Business Night Rate is the discounted electricity rate applied overnight typically for businesses operating outside peak hours. It benefits companies with flexible processes or equipment that can run overnight. It also supports load shifting strategies.	Billing and Contracts
Business Energy Tariff	A Business Energy Tariff is an electricity or gas contract designed for commercial users rather than households. It usually offers tailored pricing structures fixed terms and different non commodity charges. Selecting the right tariff improves budgeting and reduces costs.	Billing and Contracts
Balancing Services	Balancing Services are actions taken by National Grid to ensure electricity stability including reserve power voltage control and frequency response. Costs are passed through to commercial customers depending on contract type. Participation can also offer revenue opportunities for large users.	Electricity
Billing Cycle	A Billing Cycle is the standard period a supplier uses to produce an energy invoice often monthly or quarterly. Understanding your billing cycle helps track usage and budget effectively. Businesses with smart or half hourly meters often receive more accurate cycle data.	Billing and Contracts
Benchmark Consumption	Benchmark Consumption is an estimated usage figure used to compare business performance against similar sites. It identifies whether energy use is typical high or low for the industry. Benchmarks support energy audits and improvement planning.	General Energy
Building Energy Management System (BEMS)	A BEMS is a system that controls and monitors energy usage across a building including heating cooling ventilation and lighting. It helps optimise performance reduces waste and improves comfort levels. Many businesses install BEMS to support carbon reduction strategies.	General Energy
Building Load	Building Load refers to the total energy demand of a premises at any given time. It includes heating cooling machinery and essential equipment. Managing building load helps reduce peak charges and improve operational efficiency.	Electricity
Billing Accuracy Check	A Billing Accuracy Check is an audit comparing billed consumption against meter readings and contract rates. It helps identify errors such as estimated bills or incorrect charges. Many businesses use third parties to perform regular checks.	Billing and Contracts

C

Term	Definition	Category
Calorific Value	Calorific Value is the amount of energy released when gas is burned and is used to convert gas volume into kilowatt hours. Higher calorific value means more usable energy per cubic metre. It helps ensure accurate gas billing for commercial users.	Gas
Capacity Agreement	A Capacity Agreement is a contract under the UK Capacity Market where generators commit to providing electricity when needed. It ensures enough backup power is available during peak demand. Businesses mainly encounter these costs through non commodity charges.	Electricity
Capacity Charge	A Capacity Charge is a fee paid for the electrical capacity reserved for a site usually based on Agreed Capacity. Businesses exceeding their limit may incur excess capacity charges. Reviewing capacity settings can reduce ongoing costs.	Billing and Contracts
Capacity Market	The Capacity Market ensures enough electricity generation is available to meet peak demand in the UK. Generators receive payments for staying on standby and delivering power when called upon. Costs are recovered from energy users through supplier charges.	Electricity
Carbon Allowances	Carbon Allowances are certificates that permit businesses to emit a certain amount of carbon under trading schemes. They are used in large energy intensive industries to control and reduce emissions. Prices fluctuate based on demand and environmental policy.	Gas
Carbon Capture and Storage	Carbon Capture and Storage is a technology that captures carbon dioxide from industrial processes and stores it underground. It reduces emissions from sectors that are difficult to decarbonise. Businesses may see related costs or incentives in future energy policy.	Regulation and Compliance
Carbon Factor	The Carbon Factor represents the amount of carbon dioxide released per kilowatt hour of electricity consumed. It changes depending on the generation mix on the grid. Businesses use it for carbon reporting and sustainability calculations.	Regulation and Compliance
Carbon Intensity	Carbon Intensity measures how much carbon dioxide is produced to generate each unit of electricity. It varies throughout the day based on renewable availability and grid demand. Monitoring carbon intensity helps businesses schedule low carbon energy use.	Regulation and Compliance
Brown Power	Brown Power is electricity generated from non renewable sources such as coal or gas. It does not carry renewable certificates and therefore has a higher carbon intensity. Some suppliers label Brown Power separately from green or renewable products.	Electricity
Climate Change Levy (CCL)	The Climate Change Levy is a government tax applied to business energy use. It encourages companies to reduce energy consumption and improve efficiency. Eligible businesses may receive discounts through Climate Change Agreements.	Billing and Contracts
Climate Change Agreement (CCA)	A CCA is a voluntary scheme that provides significant discounts on the Climate Change Levy for eligible energy intensive businesses. To qualify companies must meet energy saving targets. CCAs help reduce operational costs and support long term sustainability.	Billing and Contracts
Combined Cycle Gas Turbine (CCGT)	A CCGT plant generates electricity using natural gas and captures waste heat to increase efficiency. It is one of the most common forms of electricity generation in the UK. CCGT plants provide flexible output to balance renewable generation.	General Energy
Combined Heat and Power (CHP)	CHP systems generate electricity on site and capture the heat for use in buildings or industrial processes. They improve efficiency and reduce overall energy costs. Businesses use CHP to increase resilience and lower carbon output.	General Energy
Closed Profile Class	Closed Profile Classes are historic electricity profile categories no longer used for new connections. They remain relevant when analysing older supply data or legacy billing formats. Most modern sites are classified under updated profile systems.	Billing and Contracts
Commodity Cost	Commodity Cost is the wholesale cost of electricity or gas which makes up part of the unit rate. It fluctuates based on market conditions supply risks and demand levels. All fixed and flexible tariffs are influenced by commodity cost movements.	Billing and Contracts
Connection Agreement	A Connection Agreement sets out the technical and commercial conditions under which a business is connected to the electricity network. It includes details such as capacity limits and metering arrangements. Understanding it helps businesses avoid non compliance charges.	Regulation and Compliance
Consumption Benchmark	A Consumption Benchmark is a typical usage figure used to compare energy performance against similar businesses. It provides insight into whether a site is operating efficiently. Benchmarks support audits and identify areas for improvement.	General Energy
Contract End Date	The Contract End Date is the final day of an energy supply agreement. Businesses must renew negotiate or switch before this date to avoid rolling onto higher rates. Keeping track of contract end dates prevents unwanted default tariffs.	Billing and Contracts
Credit Cover	Credit Cover is a financial guarantee required for some flexible energy purchasing arrangements. It protects the supplier against non payment risk. Larger businesses often provide credit cover when buying energy directly from wholesale markets.	Billing and Contracts
CT Meter (Current Transformer Meter)	A CT Meter is used for sites with high electricity demand and requires external transformers to measure current safely. It provides accurate consumption data for larger commercial premises. CT meters often support half hourly metering.	Electricity
Customer Transfer Blocking	Customer Transfer Blocking occurs when a supplier prevents a switch usually due to debt or contract disputes. It is regulated by Ofgem to ensure fair switching processes. Businesses must resolve outstanding issues before the transfer can proceed.	Billing and Contracts

D

Term	Definition	Category
D0001 Data Flow	D0001 is a standard electricity industry data flow used to send meter readings between market participants. It helps suppliers validate consumption and produce accurate bills. Businesses may hear the term when dealing with metering issues or billing disputes.	Metering
D0010 Meter Readings	D0010 is an industry data file containing actual or estimated meter readings sent to suppliers. It ensures that billing reflects the latest consumption information. Accurate D0010 data reduces the risk of incorrect invoices.	Metering
D0030 Consumption Data Report	D0030 is a half hourly consumption report used by suppliers and industry agents. It contains detailed usage data that supports billing, forecasting and analysis. Businesses with half hourly meters rely on this data for performance reviews.	Metering
D0052 Estimated Annual Consumption Update	D0052 is a data flow that updates the estimated annual consumption for electricity customers. It helps suppliers forecast demand more accurately. Changes in D0052 values can affect standing charges and contract pricing.	Metering
D0095 Meter Technical Details	D0095 contains technical information about a meter such as type, configuration and identifiers. It ensures all industry parties have correct metering records. Accurate D0095 data helps avoid billing delays and switching issues.	Metering
Daily Meter (DM)	A supply point whose annual quantity (consumption) is greater than 58,600,000kWh (2,000,000 therms per annum), will have a mandatory DM meter fitted.	Metering
Daily Standing Charge	The Daily Standing Charge is a fixed daily fee covering network access metering and supplier administration. It applies regardless of how much energy is used. Reviewing standing charges helps businesses understand their total cost structure.	Billing and Contracts
Daily Unit Rate	The Daily Unit Rate is the electricity price per kilowatt hour used during daytime hours on a multi rate tariff. It is usually higher because demand on the grid is greatest during the day. Businesses can reduce costs by shifting usage away from peak hours.	Billing and Contracts
Data Aggregator (DA)	A Data Aggregator is responsible for collecting and consolidating meter data from different sources. They ensure consumption figures are accurate before being sent for settlement. Reliable aggregation supports fair and consistent billing.	Metering
Data Collector (DC)	A Data Collector retrieves meter readings from sites for use in billing and settlement processes. They play a key role in ensuring meter data is accurate and up to date. Businesses rely on good DC performance to avoid estimated bills.	Metering
Data Logger	A Data Logger is a device that records energy usage at regular intervals. It is used to analyse consumption patterns identify inefficiencies and support energy audits. Many businesses use loggers to monitor high usage equipment.	General Energy
Day Ahead Price	The Day Ahead Price is the wholesale electricity or gas price agreed one day before delivery. It is commonly used in flexible purchasing contracts. Monitoring day ahead prices helps businesses manage procurement risk.	Billing and Contracts
Deemed Rates	Deemed Rates are high default prices charged when a business uses energy without an active contract. They are significantly more expensive than negotiated rates. Avoiding deemed rates is essential for cost control.	Billing and Contracts
Demand Charge	A Demand Charge applies to businesses with high electrical loads and is based on the maximum power drawn from the grid. It encourages users to avoid unnecessary peaks. Managing demand helps reduce operational costs.	Electricity
Demand Forecasting	Demand Forecasting predicts future energy usage based on operational trends and seasonal patterns. Accurate forecasting helps businesses choose suitable contracts and avoid overpaying. It also supports budgeting and efficiency planning.	Electricity
Demand Side Response (DSR)	Demand Side Response rewards businesses for reducing or shifting electricity use at certain times. It helps support the grid during periods of high demand or low supply. Participating in DSR can provide additional revenue or cost savings.	Electricity
Department of Trade and Industry (DTI)	The Department of Trade and Industry, a UK government department which, among other responsibilities, has a leading role the UK Government oversight of energy policy (UK).	Regulation and Compliance
Direct Current (DC)	An electrical current which flows only in one direction in a circuit. Batteries and fuel cells produce direct current.	General Energy
DUoS Distribution Use of System	DUoS charges cover the cost of using local electricity networks operated by Distribution Network Operators. These charges vary by region and time of use. Businesses on pass through contracts see DUoS listed separately on bills.	Electricity
Distribution Network Operator (DNO)	A Distribution Network Operator manages the local electricity infrastructure including cables and substations. They ensure the safe delivery of electricity from the national grid to business sites. DNO region affects network charges and capacity rules.	Electricity
Domestic / Non Domestic Supply	A Supply Point with an AQ of 73,200kWH (2500 therms) or less, is deemed as a domestic site. (This does not mean the user is necessarily residential). A supply point with an AQ of over 73,00kWh is deemed as non-domestic.	Billing and Contracts
Dynamic Load	Dynamic Load refers to electrical demand that varies frequently throughout the day. Understanding dynamic load helps businesses manage peak usage and improve efficiency. It is particularly important for sites with machinery that cycles on and off.	Electricity
Dynamic Purchasing	Dynamic Purchasing allows businesses to buy energy at multiple points throughout a contract instead of fixing all costs upfront. It offers flexibility but requires active market monitoring. Many larger businesses use dynamic purchasing for cost control.	Billing and Contracts
Dynamic TNUoS Tariff	Dynamic TNUoS refers to transmission charges that change depending on system needs or peak demand levels. It can influence the timing of electricity use for large business users. Managing consumption during high charge periods helps reduce bill costs.	Electricity

E

Term	Definition	Category
Estimated Annual Consumption (EAC)	Estimated Annual Consumption is the forecast electricity usage for a site over a full year. Suppliers use EAC to plan purchasing and calculate contract pricing. Keeping it accurate helps prevent billing issues and unexpected charges.	Billing and Contracts
Embedded Generation	Embedded Generation refers to electricity produced on site or locally such as solar panels or CHP units. It reduces reliance on the national grid and can lower energy costs. Businesses with embedded generation may also benefit from export payments.	Electricity
Energy Arbitrage	Energy Arbitrage is the practice of using storing or exporting electricity when prices are lower and reducing usage when prices are higher. It is common for businesses with batteries or flexible processes. Effective arbitrage reduces overall energy spend.	Electricity
Energy Audit	An Energy Audit is a detailed review of how a business uses electricity and gas. It identifies inefficiencies and recommends cost saving measures. Audits are commonly used to support ESOS compliance or carbon reduction planning.	General Energy
Energy Breakdown	An Energy Breakdown shows how consumption is split across equipment departments or time periods. It helps businesses understand where savings can be made. Detailed breakdowns improve budgeting and support efficiency plans.	General Energy
Energy Broker	An Energy Broker acts on behalf of a business to find competitive electricity or gas contracts. They compare suppliers manage tenders and advise on pricing. Transparency around broker fees is important for fair comparisons.	Billing and Contracts
Energy Consumption Profile	An Energy Consumption Profile shows how energy use changes throughout the day week or year. It helps identify peak usage patterns and waste. Businesses use profiles to optimise equipment schedules and reduce costs.	General Energy
Energy Efficiency Measure	An Energy Efficiency Measure is an action that reduces the amount of electricity or gas a business uses. Examples include LED lighting insulation controls or upgraded machinery. These measures reduce costs and support sustainability goals.	General Energy
Energy Intensive User	An Energy Intensive User is a business that consumes large amounts of energy as part of its operations. These companies often qualify for government schemes that reduce network or environmental charges. Managing energy efficiently is critical for their competitiveness.	General Energy
Energy Management System (EMS)	An EMS is a system used to monitor and control energy use across a site. It helps identify waste optimise equipment and track performance. EMS tools are common in large sites with complex energy demands.	General Energy
Energy Ombudsman	The Energy Ombudsman is an independent body that resolves disputes between businesses and energy suppliers. It provides free impartial decisions when complaints cannot be resolved directly. Businesses often use the Ombudsman for billing or service issues.	Regulation and Compliance
Energy Performance Certificate (EPC)	An EPC rates how energy efficient a building is and provides recommendations for improvement. Commercial properties require an EPC during sale rental or construction. Better EPC ratings help reduce energy costs and improve compliance.	Regulation and Compliance
Energy Procurement	Energy Procurement is the process of sourcing electricity or gas contracts for a business. It involves timing the market comparing suppliers and choosing tariff types. Effective procurement reduces long term costs and risk.	Billing and Contracts
Energy Profile Class	An Energy Profile Class categorises electricity meters based on usage patterns. Domestic and small business meters often fall into profile classes instead of half hourly categories. The profile affects billing structure and forecasting.	Metering
Energy Strategy	An Energy Strategy outlines how a business plans to reduce costs carbon output and risk. It includes procurement efficiency generation and long term targets. Strong strategies support resilience and regulatory compliance.	General Energy
Energy Supplier of Last Resort (SoLR)	A Supplier of Last Resort is appointed when an energy supplier fails. It ensures continuity of supply for affected businesses. Customers are transferred automatically until they choose a new contract.	Regulation and Compliance
Energy Theft	Energy Theft refers to illegally bypassing or tampering with electricity or gas meters. It is a criminal offence that increases network costs for all users. Suppliers use data analysis to detect suspicious activity.	Regulation and Compliance
Energy Savings Opportunity Scheme (ESOS)	ESOS is a mandatory energy audit scheme for large UK businesses. It requires organisations to measure consumption review efficiency and identify improvement opportunities every four years. Non compliance can result in financial penalties.	Regulation and Compliance
EV Charge Point	An EV Charge Point is a device that supplies electricity to electric vehicles at a business site. Companies install charge points to support staff fleets or customers. They may also access grants or incentives to reduce installation costs.	Electricity
Ex Ante Pricing	Ex Ante Pricing is a forward looking pricing method where rates are set before the energy is consumed. It is common in fixed price contracts. Businesses use it to secure price certainty and protect against market volatility.	Billing and Contracts
Ex Post Pricing	Ex Post Pricing is based on actual energy usage and costs after consumption occurs. It is common in flexible purchasing contracts. This method offers transparency but exposes businesses to price fluctuations.	Billing and Contracts

F

Term	Definition	Category
Feed in Tariff (FiT)	The Feed in Tariff was a government incentive that paid businesses for generating renewable electricity on site. Although closed to new applicants it still applies to older solar and renewable installations. FiT provides both generation payments and export payments.	Electricity
Fixed Charge	A daily, monthly or quarterly charge levied by the supplier and is in addition to the standing charge.	Billing and Contracts
Fixed Energy Contract	A Fixed Energy Contract locks in the unit rate and standing charge for a set period. It protects businesses from market volatility and makes budgeting simpler. These contracts suit organisations wanting cost certainty.	Billing and Contracts
Flexible Energy Contract	A Flexible Contract allows the business to purchase energy in multiple blocks throughout the term. It offers more control over buying strategy but requires active market engagement. Larger energy users often prefer flexible arrangements.	Billing and Contracts
Flexi Purchasing	Flexi Purchasing is a buying method where energy is bought in smaller tranches rather than all at once. It aims to secure better prices by spreading market risk. Companies with higher usage often use flexi purchasing for long term cost optimisation.	Billing and Contracts
Floor Price	A Floor Price is the minimum price set within a contract or tariff that the unit rate cannot fall below. It protects suppliers during market downturns. Businesses benefit from understanding floor prices when comparing flexible tariffs.	Billing and Contracts
Forecast Consumption	Forecast Consumption is the estimated gas or electricity usage a business expects over a future period. Suppliers rely on forecasts to plan purchasing and set contract terms. Accurate forecasting supports budgeting and risk management.	General Energy
Frequency Response	Frequency Response is a grid service used to stabilise the electricity system when frequency deviates from its target. Some businesses with flexible load or generation can provide frequency response to earn revenue. It helps the grid react quickly to sudden demand changes.	Electricity
Fuel Mix Disclosure	Fuel Mix Disclosure shows the types of energy sources a supplier uses such as renewable gas nuclear or coal. It helps businesses understand their environmental impact. Suppliers must publish fuel mix data every year.	Regulation and Compliance
Fuel Poor Network Extension Scheme	This scheme helps qualifying households connect to the gas network but can affect network charges. Businesses mainly encounter its costs indirectly through transport charges. It forms part of regulated social support mechanisms.	Regulation and Compliance
Fuse Capacity	Fuse Capacity refers to the maximum electrical load that a fuse or main protection device can safely handle. Exceeding fuse capacity can cause outages or equipment issues. It is an important factor when upgrading electrical infrastructure.	Electricity

G

Term	Definition	Category
Gas Distribution Network (GDN)	A Gas Distribution Network is responsible for transporting gas from the national transmission system to homes and businesses. Each region has its own operator who maintains pipelines and ensures supply reliability. GDN costs appear as part of non commodity charges on gas bills.	Gas
Gas Emergency Cut Off Valve	A Gas Emergency Cut Off Valve stops the gas supply in the event of a leak or safety issue. It helps protect the premises and supports emergency response procedures. Businesses must ensure that staff know where the valve is located and how to operate it safely.	Gas
Gas Load	Gas Load refers to the amount of gas a business uses at a given time. Understanding gas load helps size equipment and forecast demand accurately. It also supports procurement decisions and capacity planning.	Gas
Gas Meter Point Reference Number (MPRN)	The MPRN is the unique identifier for a gas supply point. It is required for switching suppliers and resolving billing issues. Businesses can find it on gas bills or by contacting their current supplier.	Gas
Gas Safe Register	The Gas Safe Register is the official list of qualified engineers permitted to work on gas systems. Businesses must use Gas Safe engineers for installation repair and inspection work. This ensures legal compliance and protects site safety.	Regulation and Compliance
Gas Settlement	Gas Settlement is the industry process that ensures all gas delivered and consumed is accurately recorded and paid for. It uses meter readings forecasts and allocation rules. Settlement accuracy helps keep bills aligned with actual usage.	Gas
Gas Shipper	A Gas Shipper arranges for gas to be transported through the network to the supplier and ultimately to the business. Shippers work behind the scenes but their charges flow through to final gas bills. Their role ensures stable supply and market efficiency.	Gas
Gas Supplier	A Gas Supplier provides the commercial contract and billing services to the business. They buy gas from shippers and wholesalers and deliver customer support and account management. Switching suppliers can reduce cost and improve service.	Gas
Giga Watt (GW)	Giga Watt – 1,000 MW.	General Energy
Gigawatt Hour (GWh)	A Gigawatt Hour is a unit of energy equal to one million kilowatt hours. It is used to measure large scale consumption such as that of industrial users or national demand. GWh figures help compare usage trends over long periods.	General Energy
Greenhouse Gas Conversion Factor (GCF)	The GCF is used to convert energy usage into carbon emissions for reporting purposes. It changes each year based on the UK generation mix. Businesses use GCF values in sustainability reporting such as SECR or ESG statements.	Regulation and Compliance
Greenhouse Gas (GHG) Protocol	A widely used standard for emissions reporting. The protocol covers project emissions reporting and corporate emissions reporting. The corporate emissions reporting standard provides a methodology for calculation of a carbon footprint. The protocol was developed by the World Resources Institute and the World Business Council for Sustainable Development.	Regulation and Compliance
Green Gas Certificate	A Green Gas Certificate verifies that a portion of the gas supplied comes from renewable sources such as biogas. Businesses use these certificates to demonstrate lower carbon impact. They help support the growth of the green gas market.	Gas
Green Power Tariff	A Green Power Tariff supplies electricity matched with renewable certificates. It helps businesses reduce carbon footprint without installing their own generation. Green tariffs vary in quality based on the type of certificate used.	Electricity
Grid Balancing	Grid Balancing is the process of matching electricity supply and demand in real time. National Grid uses various tools to maintain stability such as frequency response and reserve power. Businesses may indirectly pay for balancing through non commodity charges.	Electricity
Grid Connection	A Grid Connection links a business site to the electricity network. The connection capacity and design affect what equipment can be installed. Upgrading a connection may be required for high load facilities or on site generation projects.	Electricity
Grid Constraint	A Grid Constraint occurs when the network cannot move electricity freely due to limited capacity or system issues. It may lead to higher balancing costs or curtailment of renewable generation. Businesses may see the impact through increased network charges.	Electricity
Grid Supply Point (GSP)	A Grid Supply Point is where electricity moves from the transmission network into local distribution networks. It plays an important role in regional pricing and system balancing. Businesses do not interact directly with GSPs but pay charges influenced by them.	Electricity

H

Term	Definition	Category
Half Hourly Data (HHD)	Half Hourly Data is electricity usage recorded every 30 minutes by a half hourly meter. It provides highly accurate insight into when and how energy is used. Businesses use this data for forecasting efficiency planning and reducing peak demand.	Metering
Half Hourly Meter (HH Meter)	A Half Hourly Meter automatically sends usage data every half hour to the supplier. It is mandatory for larger electricity users and improves billing accuracy. HH metering supports advanced analytics demand management and flexible energy contracts.	Metering
Hard Standing Charge	A Hard Standing Charge is a fixed cost applied to cover network availability and infrastructure access. It applies even when little or no energy is consumed. Understanding this charge helps businesses evaluate the true cost of their contract.	Billing and Contracts
Heat Pump	A Heat Pump is an energy efficient system that extracts heat from the air ground or water. It reduces reliance on fossil fuels and can lower long term heating costs. Many businesses install heat pumps to improve EPC ratings and sustainability performance.	General Energy
Heating Degree Days (HDD)	Heating Degree Days measure how cold the weather is and how much heating energy is likely to be required. They help businesses forecast seasonal gas use and analyse heating performance. HDD data is widely used in energy audits and building optimisation.	General Energy
High Voltage (HV)	High Voltage (11,000 Volts or above).	Electricity
High Voltage Supply (HV Supply)	A High Voltage Supply provides electricity at higher voltages for large industrial or commercial sites. HV connections offer improved efficiency but require specialised equipment and safety measures. Businesses with HV supply often face different network charges.	Electricity
Historic Consumption	Historic Consumption refers to past electricity or gas usage data for a site. Suppliers use it when pricing contracts and assessing load patterns. Reviewing historic consumption helps businesses identify trends and potential savings.	General Energy
Holiday Mode Tariff	A Holiday Mode Tariff is a special rate offered when energy consumption is expected to be significantly lower for a period. It is sometimes used by seasonal businesses. It helps reduce costs during known shutdown periods.	Billing and Contracts
Hot Water Load	Hot Water Load refers to the amount of energy required to heat water for business operations. It is common in hospitality healthcare and food production. Managing hot water load helps reduce overall gas or electricity consumption.	General Energy
Heating Ventilation and Air Conditioning (HVAC)	HVAC systems manage indoor temperature and air quality in commercial buildings. These systems are major energy users and offer significant savings opportunities through tuning controls and upgrades. Efficient HVAC management improves comfort and reduces running costs.	General Energy

I

Term	Definition	Category
Independent Public Gas Transporter (IGT)	An independent company who has responsibility of the maintenance of a gas supply network.	General Energy
Industrial and Commercial Supply (I&C)	I and C supply refers to energy contracts designed for medium to large business users with higher consumption levels. These contracts offer tailored pricing structures and may include flexible purchasing options. They differ from standard SME tariffs due to higher load and complexity.	Billing and Contracts
Infrastructure Costs	These relate mostly to the costs of providing the infrastructure required to deliver power. They include the cost of energy lost as heat as it travels from the power station down the transmission and distribution wires to you (which we call Tloss and Dloss), and charges for using the transmission and distribution networks (which are called TUoS and DUoS).	General Energy
Import	Where a site consumes electricity as opposed to generating and exporting power. Import is the most common type of site.	Electricity
Import Capacity	Import Capacity is the maximum electrical load a site is permitted to draw from the grid. It is set by the Distribution Network Operator and shown on electricity bills. Exceeding import capacity can result in penalty charges.	Electricity
Import Meter	An Import Meter records the amount of electricity drawn from the grid into a business site. It forms the basis for billing and consumption reporting. Businesses with generation systems also use import meters alongside export meters.	Metering
Imbalance Charges	Imbalance Charges apply when a supplier or generator buys or sells more or less electricity than planned. These charges help balance the national grid. Businesses on flexible contracts may indirectly see the impact of imbalance costs.	Electricity
Incentive Scheme	An Incentive Scheme encourages businesses to reduce consumption or improve efficiency through rewards or reduced charges. Examples include demand response and energy efficiency grants. Incentive schemes support cost savings and sustainability goals.	General Energy
Industry Charges	Industry Charges are non commodity costs passed through on electricity or gas bills. They include transmission distribution balancing and environmental scheme costs. Industry charges can make up a significant portion of total energy spend.	Billing and Contracts
Installed Capacity	Installed Capacity refers to the maximum possible output of on site generation equipment such as solar panels or CHP. It helps determine grid connection requirements and export potential. Knowing installed capacity is important when assessing project viability.	Electricity
Interconnector	An Interconnector is a high voltage cable linking the UK to another country for energy trading. It increases security of supply and helps balance the system. Interconnector flows influence wholesale prices.	Electricity
Interval Data	Interval Data refers to energy usage recorded at regular intervals such as every 15 or 30 minutes. It provides detailed insight into consumption patterns. Businesses use interval data to optimise operations and reduce peak demand.	Metering
Inverter	An Inverter converts direct current from solar panels or batteries into alternating current for use in buildings. It is an essential component of renewable energy systems. Efficient inverters help maximise generation performance.	Electricity
IPP Independent Power Producer	An Independent Power Producer generates electricity for sale to the grid or direct supply. IPPs often operate renewable or flexible generation assets. They play a key role in diversifying the UK energy market.	Electricity
ISO 14064	This is an international standard for corporate emissions reporting. It builds on the approach outlined in the Greenhouse Gas Protocol.	Regulation and Compliance
ISO Energy Standards	ISO energy standards such as ISO 50001 help businesses manage energy use more effectively. These standards provide structured frameworks for reducing consumption and improving performance. Certification supports compliance and sustainability reporting.	Regulation and Compliance

J

Term	Definition	Category
Joule	A Joule is the basic unit of energy used in scientific measurement. It represents the amount of work done when one watt of power is used for one second. While not commonly used in billing it helps explain how energy is measured and converted.	General Energy
Jointers	Jointers are specialists who connect or repair electricity cables within distribution networks. They ensure safe installation of underground and overhead power lines. Their work supports network reliability and reduces outage risks for businesses.	Electricity
Jointing Pit	A Jointing Pit is an access point in the ground that allows engineers to reach and maintain underground electricity cables. It provides a safe working area for connecting or repairing power lines. These pits are essential for maintaining local network infrastructure.	Electricity
Jurisdictional Charges	Jurisdictional Charges refer to regulated costs applied by government bodies or industry authorities. These charges are included within business energy bills and support infrastructure maintenance or policy schemes. They contribute to the non commodity portion of electricity and gas pricing.	Billing and Contracts
J-power Curve	A J power Curve is a graphical view of how electricity demand increases sharply after a low load period forming a J shape. It is used in forecasting and operational planning for larger energy users. Understanding this curve helps businesses manage demand peaks.	Electricity
Job Completion Certificate	A Job Completion Certificate confirms that electrical or gas installation work has been carried out safely and correctly. Businesses may require this certificate for compliance records or insurance purposes. It provides assurance that equipment meets industry standards.	Regulation and Compliance
Joint Network Analysis	Joint Network Analysis assesses how both gas and electricity networks operate together in a local area. It helps identify capacity limits and future infrastructure needs. Businesses planning expansion projects may be affected by joint network outcomes.	Electricity
Jurisdictional Metering	Jurisdictional Metering refers to meters used in specific regulatory categories such as commercial industrial or public sector sites. These meters must comply with standards set by industry bodies. Accurate metering supports fair billing and contract performance.	Metering
Industry Charges	Industry Charges are non commodity costs passed through on electricity or gas bills. They include transmission distribution balancing and environmental scheme costs. Industry charges can make up a significant portion of total energy spend.	Billing and Contracts
Installed Capacity	Installed Capacity refers to the maximum possible output of on site generation equipment such as solar panels or CHP. It helps determine grid connection requirements and export potential. Knowing installed capacity is important when assessing project viability.	Electricity
Interconnector	An Interconnector is a high voltage cable linking the UK to another country for energy trading. It increases security of supply and helps balance the system. Interconnector flows influence wholesale prices.	Electricity
Interval Data	Interval Data refers to energy usage recorded at regular intervals such as every 15 or 30 minutes. It provides detailed insight into consumption patterns. Businesses use interval data to optimise operations and reduce peak demand.	Metering
Inverter	An Inverter converts direct current from solar panels or batteries into alternating current for use in buildings. It is an essential component of renewable energy systems. Efficient inverters help maximise generation performance.	Electricity
IPP Independent Power Producer	An Independent Power Producer generates electricity for sale to the grid or direct supply. IPPs often operate renewable or flexible generation assets. They play a key role in diversifying the UK energy market.	Electricity
ISO 14064	This is an international standard for corporate emissions reporting. It builds on the approach outlined in the Greenhouse Gas Protocol.	Regulation and Compliance
ISO Energy Standards	ISO energy standards such as ISO 50001 help businesses manage energy use more effectively. These standards provide structured frameworks for reducing consumption and improving performance. Certification supports compliance and sustainability reporting.	Regulation and Compliance

K

Term	Definition	Category
Kilovolt Ampere (kVA)	kVA is a unit used to measure electrical load capacity and is often used in relation to Agreed Capacity. It indicates how much electrical demand a site can place on the network. Businesses must ensure their kVA allowance is set correctly to avoid excess capacity charges.	Electricity
Kilovolt (Kv)	A Kilovolt is a unit of electrical potential equal to one thousand volts. It is commonly used in high voltage distribution networks. Understanding kV levels helps businesses when upgrading or connecting large electrical equipment.	Electricity
Kilowatt Hour (kWh)	A Kilowatt Hour is the standard unit used to measure energy consumption on business electricity and gas bills. It represents using one kilowatt of power for one hour. Reducing kWh usage directly lowers operational energy costs.	General Energy
Kilowatt (kW)	A Kilowatt is a unit of power that measures how fast energy is being used at a given moment. It is commonly used for equipment ratings such as heaters motors or lighting systems. Understanding kW demand helps businesses avoid high peak usage.	Electricity
Kilo Var (kVAr)	kVAr is a unit of reactive power which is used to support voltage levels on the electricity network. Businesses with poor power factor may incur reactive power charges linked to kVAr demand. Improving power factor reduces waste and equipment strain.	Electricity
Kilo Var Hour (kVArh)	kVArh measures how much reactive power is consumed over time. High kVArh usage can lead to additional charges for sites with older or inefficient equipment. Monitoring reactive load helps improve electrical efficiency.	Electricity
Key Meter	A Key Meter is a type of prepayment electricity meter operated using a top up key. Although more common in residential settings some small businesses still use them. They help control spending but usually come with higher unit rates.	Metering
Kiln Load	Kiln Load refers to the significant energy demand created by industrial kilns used in manufacturing or ceramics. Managing kiln load helps avoid high peak consumption and reduces running costs. These systems often require dedicated supply arrangements.	General Energy
Knot Energy Loss	Knot Energy Loss describes energy lost due to inefficiencies at points where network cables join. It is a minor but measurable factor in distribution performance. Businesses do not pay for this directly but it forms part of overall network costs.	Electricity

L

Term	Definition	Category
Landlord Supply	A Landlord Supply is an energy supply controlled by a landlord and used for communal or multi tenant areas. The landlord manages billing and may recharge tenants. Clear metering is important to avoid disputes.	Billing and Contracts
Late Payment Charge	A Late Payment Charge is applied when a business does not pay its energy bill on time. It compensates suppliers for administrative and cash flow impacts. Avoiding late fees helps manage overall energy costs.	Billing and Contracts
LED Lighting	LED Lighting is an efficient alternative to traditional lighting that uses far less electricity. Businesses switch to LED to cut running costs and reduce maintenance. It is one of the quickest and simplest energy saving upgrades.	General Energy
Liquefied Natural Gas (LNG)	LNG is natural gas cooled into a liquid for storage or transport. It is used as an alternative supply source during shortages or peak demand. LNG availability can influence wholesale gas prices.	Gas
Load	Load refers to the amount of electrical power a business is using at any moment. Managing load helps reduce peak demand and avoid unnecessary charges. Load data supports efficiency planning and equipment scheduling.	Electricity
Load Factor	Load Factor measures how efficiently a business uses its maximum electrical demand. A higher load factor indicates steady consumption while a low factor suggests costly peaks. Improving load factor helps reduce overall electricity charges.	Electricity
Load Forecasting	Load Forecasting predicts how much energy a business will use in future periods. It is essential for procurement planning and accurate budgeting. Suppliers also use forecasts to plan wholesale purchasing.	General Energy
Load Management	Where sites are flexible as to when they use their electricity. This means that they can schedule their production and shift patterns according to the price of pool electricity. Consumers who can load manage are able to significantly reduce their consumption at the three times in the year when the National Grid takes the Triad maximum demand readings which are used to calculate the transmission charges.	Electricity
Load Profile	A Load Profile shows how a business electricity consumption varies throughout the day. It highlights peak times and operational patterns. Understanding load profile helps improve efficiency and reduce cost.	Electricity
Load Shedding	Load Shedding is the controlled reduction of electricity use to prevent system overload. Some businesses take part in load shedding programmes through demand response schemes. It can provide resilience and cost benefits.	Electricity
Low Voltage (LV)	Low Voltage, normally at 240 or 415 Volts.	Electricity
Low Voltage Supply (LV Supply)	A Low Voltage Supply delivers electricity at standard commercial or domestic voltage levels. Most small and medium businesses operate on LV connections. It is simpler and cheaper than a high voltage supply.	Electricity
Lower Heating Value LHV	Lower Heating Value is a measure of the usable energy in fuel excluding the energy lost in water vapour. It is used in gas efficiency calculations. Understanding LHV helps compare heating technologies and fuel performance.	Gas
Loss Adjustment Factor	A Loss Adjustment Factor accounts for electricity lost during transmission or distribution. It ensures fair billing by adjusting metered data. Businesses usually see its impact only through network charges.	Electricity
Losses Non Technical	Non Technical Losses refer to energy lost through theft meter errors or administrative issues. Reducing these losses improves overall system efficiency. Businesses may see indirect cost impacts through industry charges.	Regulation and Compliance
Low Voltage Directive	The Low Voltage Directive sets safety requirements for electrical equipment connected to the supply network. It ensures safe operation and proper installation standards. Businesses must ensure electrical products meet these rules.	Regulation and Compliance

M

Term	Definition	Category
Meter Point Reference Number (MRPN)	The M Number or MPRN is the unique identifier for a gas supply point. It appears on gas bills and is required when switching suppliers. It helps ensure the correct meter is billed and managed.	Gas
Maximum Authorised Capacity (MAC)	Maximum Authorised Capacity is the highest electrical capacity a site is allowed to import from the network. Exceeding this level can result in penalty charges. Regular reviews help businesses match capacity to real demand and avoid unnecessary costs.	Electricity
Maintenance Load	Maintenance Load is the reduced level of energy usage that occurs when equipment is offline for servicing. It helps businesses plan energy use around operational downtime. Understanding maintenance load supports accurate forecasting.	General Energy
Mandated Meter	A Mandated Meter is a meter required by regulation such as a half hourly meter for high-load sites. It ensures accurate recording of electricity use for settlement and billing. Businesses must comply with mandated metering rules to avoid penalties.	Metering
Market Price	Market Price is the wholesale cost of electricity or gas purchased on the open market. It changes daily based on supply demand weather and global factors. Understanding market price trends helps businesses choose the right procurement strategy.	Billing and Contracts
Market Stabilisation Charge	The Market Stabilisation Charge is applied when customers move from deemed or variable rates to fixed contracts during volatile periods. It protects suppliers from sudden market shifts. Businesses should understand this charge before agreeing a new tariff during high volatility.	Billing and Contracts
Maximum Demand (MD)	Maximum Demand is the highest level of electrical power a site draws during a set period. High demand can lead to extra charges or trigger capacity reviews. Businesses reduce MD by managing equipment startup and avoiding unnecessary peaks.	Electricity
Maximum Export Capacity (MEC)	Maximum Export Capacity is the highest output an onsite generator like solar or CHP is allowed to send back to the grid. It is set by the Distribution Network Operator. Staying within MEC ensures safe and compliant export.	Electricity
Megawatt (MW)	A megawatt is a unit of power equal to one million watts. It measures the rate at which energy is generated or used. Megawatts are typically used for large-scale energy production, such as the output of wind turbines or power stations.	Electricity
Mega Watt Hour (MWh)	A megawatt-hour is the amount of energy used if you consume 1 megawatt of power for one hour. In other words, it measures how much electricity is used over time.	Electricity
Maximum Import Capacity (MIC)	Maximum Import Capacity is the upper limit of electricity a site may take from the grid. It appears on bills and affects standing and capacity charges. Businesses can cut costs by adjusting MIC to match real consumption.	Electricity
Meter Class	Meter Class categorises electricity meters for settlement and billing purposes. It ensures the meter is treated correctly within the industry process. Incorrect meter class can lead to billing errors or compliance issues.	Metering
Microgeneration Certification Scheme (MCS)	The Microgeneration Certification Scheme certifies installers and equipment for small scale renewable systems such as solar panels or heat pumps. MCS approval is often required for grants and export payments. It assures quality and compliance.	Regulation and Compliance
Meter Distribution Zone (MDZ)	A Meter Distribution Zone refers to the regional area a meter belongs to in the gas network. MDZ information helps suppliers and shippers manage supply and pricing. It also affects certain elements of gas transport costs.	Gas
Meter Asset Manager (MAM)	A Meter Asset Manager installs maintains and removes gas meters. They ensure meters meet industry standards and operate safely. Businesses rely on MAM services when upgrading or replacing equipment.	Metering
Meter Asset Provider (MAP)	A Meter Asset Provider owns the physical meter and leases it to the supplier or customer. MAP charges may appear as part of non commodity costs. Understanding MAP roles helps businesses make sense of metering fees.	Metering
Meter Configuration	Meter Configuration describes how a meter is set up including registers and time periods for multi rate tariffs. Incorrect configuration can lead to inaccurate billing. Reviewing configuration ensures the meter matches operational needs.	Metering
Meter Multiplier	The Meter Multiplier is used to convert raw meter readings into actual consumption values especially for CT or large gas meters. It ensures accurate billing by scaling readings correctly. Errors in the multiplier can cause major billing discrepancies.	Metering
Meter Operator (MOP)	A Meter Operator installs maintains and tests electricity meters for commercial sites. MOP contracts are mandatory for half hourly meters. Choosing the right MOP ensures good data quality and reduces metering issues.	Metering
Meter Point Administration Number (MPAN)	The MPAN is the unique identifier for an electricity supply point. It appears on electricity bills and is required when switching suppliers. It ensures the correct meter is registered to the correct site.	Electricity
Meter Point Administration Service (MPAS)	Organisation that holds all information of MPANs. www.mpas-online.co.uk	Electricity
Metering Dispute	A Metering Dispute arises when meter readings or technical data appear incorrect. It often involves the supplier the MOP or the data collector. Resolving disputes quickly helps avoid inaccurate billing.	Metering
Microbusiness	A Microbusiness is defined by Ofgem as a company with low consumption or limited staff and turnover. Microbusinesses receive additional regulatory protections in the energy market. They typically access simpler and shorter contract types.	Regulation and Compliance
Microgeneration	Microgeneration refers to small scale onsite energy production such as solar panels wind turbines or small CHP units. It reduces reliance on the grid and lowers energy costs. Businesses often use microgeneration to support sustainability goals.	Electricity
MOP Contract	A MOP Contract covers the installation maintenance and data collection service for half hourly meters. Businesses must have an active MOP contract in place separately from their supply agreement. Selecting the right MOP helps ensure accurate and reliable data.	Metering

N

Term	Definition	Category
National Grid ESO	National Grid ESO operates the electricity system and ensures supply and demand remain balanced at all times. It manages generation dispatch grid stability and market services. Businesses interact with ESO costs through non commodity charges.	Electricity
National Transmission System (NTS)	The National Transmission System is the high pressure gas network that transports gas across the country. It delivers gas to local distribution zones before it reaches businesses. NTS charges form part of commercial gas bills.	Gas
Natural Gas Liquids (NGL)	Natural Gas Liquids are hydrocarbons extracted from natural gas such as propane or butane. They are used in heating industrial processes and fuel production. NGL availability can influence wholesale gas markets.	Gas
Network Capacity	Network Capacity refers to how much electricity or gas a local network can supply safely. Limited capacity can restrict new connections or load increases. Businesses planning expansions must consider local capacity availability.	Electricity
Network Charge	A Network Charge covers the cost of transporting electricity or gas through national and local grids. These charges make up a significant part of business energy bills. They vary by region usage pattern and meter type.	Billing and Contracts
Network Constraint	A Network Constraint occurs when the network infrastructure cannot support required energy flows. It may lead to higher balancing costs or delays in connecting new equipment. Constraints can affect regional pricing and expansion plans.	Electricity
Network Losses	Network Losses refer to energy lost during transmission or distribution. They are included in supplier costs and affect business bills indirectly. Minimising losses supports system efficiency and fairness.	Electricity
Network Operator	A Network Operator manages either the electricity distribution system or the gas distribution system in a region. They maintain infrastructure ensure safety and handle connection requests. Charges from network operators appear in non commodity costs.	Electricity
New Connection	A New Connection is the process of linking a property or site to the electricity or gas network. It may require capacity studies metering arrangements and infrastructure upgrades. The process is managed by the relevant network operator.	Regulation and Compliance
Non Commodity Costs	Non Commodity Costs are charges that are not related to the wholesale price of energy. They include network costs balancing charges and environmental levies. These costs now make up a large portion of business energy bills.	Billing and Contracts
Non Half Hourly Meter (NHH)	A Non Half Hourly Meter records electricity usage in regular intervals rather than every 30 minutes. It is common for smaller business sites. NHH meters eventually convert to smart or half hourly under industry reforms.	Metering
Non Half Hourly Settlement	Non Half Hourly Settlement is the industry process used to calculate consumption for NHH meters. It uses estimated profiles rather than precise interval data. It will be phased out as smart metering expands.	Metering
Non Standard Meter	A Non Standard Meter is a meter with special configuration or load characteristics. It may require tailored tariffs or additional metering support. These meters are common in industrial or complex commercial sites.	Metering
Notice of Objection	A Notice of Objection is issued by a supplier to block a customer switch usually due to outstanding debt or contract issues. Ofgem rules restrict when objections can be raised. Resolving the cause of the objection allows the switch to proceed.	Billing and Contracts
Notification Period	A Notification Period is the time a business must give its supplier before the end of a contract to avoid automatic moves to out of contract rates. Missing the window can lead to higher costs. Keeping track of renewal dates prevents issues.	Billing and Contracts
Nuclear RAB Levy	The Nuclear RAB Levy is a charge added to electricity bills to help fund new nuclear power projects under the Regulated Asset Base model. It allows consumers to contribute to construction costs while the plant is being built rather than waiting until it generates electricity. The levy reduces financial risk for developers and aims to lower long term nuclear project costs. Businesses will see this charge included within non commodity costs on electricity bills.	Regulation and Compliance

O

Term	Definition	Category
Ofgem (Office of Gas and Electricity Markets)	Ofgem is the energy regulator responsible for overseeing electricity and gas markets in the UK. It protects consumers enforces rules on suppliers and sets policies that affect pricing and competition. Businesses rely on Ofgem regulations for fair treatment transparent billing and complaint resolution.	Regulation and Compliance
Off Peak Electricity	Off Peak Electricity refers to cheaper electricity rates during quieter periods such as overnight or weekends. Businesses can lower costs by shifting high usage tasks into off peak windows. This tariff structure supports grid balancing and demand reduction.	Billing and Contracts
Offtake	Offtake refers to the amount of energy taken from a transmission or distribution system at a given point. It helps determine network charges and capacity requirements. Monitoring offtake is important for large users with varying demand.	Electricity
Operational Consumption	Operational Consumption refers to the energy used by equipment and processes during normal business activity. It excludes standby or shutdown loads. Monitoring operational consumption helps identify efficiency improvements.	General Energy
Out of Contract Rates	Out of Contract Rates are high default prices charged when a contract expires without renewal or switching. These rates are significantly more expensive than agreed tariffs. Avoiding out of contract rates is essential for cost control.	Billing and Contracts
Outage	An Outage is a temporary loss of electricity or gas supply due to faults maintenance or network issues. Businesses may be affected by planned or unplanned outages depending on network conditions. Outage reporting helps suppliers maintain resilience.	Electricity
Overvoltage	Overvoltage occurs when the electrical supply exceeds the normal operating voltage. It can damage equipment reduce lifespan and cause safety issues. Businesses should investigate repeated overvoltage events through their supplier or DNO.	Electricity
OFGEM Price Cap	The Ofgem Price Cap limits what suppliers can charge domestic customers per unit of energy. Although it does not apply to business tariffs it can influence wholesale market behaviour. Business customers may still monitor it for market trends.	Regulation and Compliance
Onsite Generation	Onsite Generation refers to producing electricity at a business location using technology such as solar CHP or small wind systems. It helps reduce grid reliance and cut long term energy costs. Many businesses pair onsite generation with battery storage.	Electricity
Open Market Tariff	An Open Market Tariff is a contract sold at current wholesale influenced rates rather than long term fixed prices. It offers flexibility but exposes businesses to market volatility. It is more common in flexible procurement arrangements.	Billing and Contracts
Operational Carbon	Operational Carbon is the carbon dioxide emitted from daily business activities including energy use. Reducing operational carbon is a key part of sustainability strategies. Businesses track it for reporting frameworks such as SECR.	Regulation and Compliance

P

Term	Definition	Category
Pass Through Charges	Pass Through Charges are non commodity costs that a supplier does not fix in the contract and instead passes directly to the customer at the true industry rate. They include network charges balancing costs environmental levies and metering fees. Pass through structures offer transparency but can lead to fluctuating monthly bills depending on system conditions and regulatory changes.	Billing and Contracts
Power Purchase Agreement (PPA)	A Power Purchase Agreement is a long term contract where a business buys electricity directly from a generator often at a discounted stable rate. PPAs support renewable investment and help businesses lock in predictable energy costs. They are popular for sustainability driven organisations.	Electricity
Peak Demand	Peak Demand is the highest level of electricity a business uses during a specific period. High peaks can lead to increased capacity and demand charges. Managing peak demand helps reduce overall energy costs.	Electricity
Peak Load	Peak Load refers to the maximum amount of power required by a site at any moment. Businesses aim to reduce peak load to avoid network penalties and improve efficiency. Equipment scheduling plays a key role in peak load management.	Electricity
Penalty Charge	A Penalty Charge is applied when a business breaches certain contract conditions such as exceeding capacity or late payment. These charges protect suppliers against risk and administrative costs. Understanding contract terms helps avoid unnecessary penalties.	Billing and Contracts
Pipeline Gas	Pipeline Gas refers to natural gas delivered through the UK transmission and distribution network. It is the main fuel source for most commercial heating systems. Pipeline gas prices depend on global markets and regional capacity.	Gas
Power Factor	Power Factor measures how effectively electrical equipment uses the supplied power. Poor power factor can result in additional charges for reactive power. Improving power factor enhances efficiency and reduces strain on equipment.	Electricity
Power Factor Correction	Power Factor Correction involves installing equipment to improve the efficiency of electrical systems. It helps reduce reactive power usage and avoid charges. Businesses with large motors or machinery often benefit from correction solutions.	Electricity
Power Purchase	Power Purchase refers to the procurement of electricity from suppliers or generators. Businesses can choose fixed flexible or direct purchase arrangements depending on risk appetite. Effective power purchasing helps manage long term energy costs.	Billing and Contracts
Power Quality	Power Quality describes the stability and reliability of the electrical supply including voltage harmonics and interruptions. Poor power quality can damage equipment or disrupt operations. Monitoring power quality helps prevent costly downtime.	Electricity
Prepayment Meter (PPM)	A Prepayment Meter requires businesses to pay for energy before using it typically by topping up credit. It offers spending control but usually comes with higher unit rates. PPMs are more common in microbusiness settings.	Metering
Pressure Drop	Pressure Drop refers to the reduction in gas pressure as it travels through pipes. Excessive pressure drop can affect appliance performance. Engineers consider pressure drop when designing business gas installations.	Gas
Profile Class	A Profile Class categorises electricity meters based on typical usage patterns. Smaller businesses often fall into standard profile classes which influence settlement and billing. Moving to half hourly metering provides more accurate profiling.	Metering
Prosumer	A Prosumer is a business that both consumes and produces electricity such as with solar or CHP systems. Prosumers may export surplus power back to the grid. This supports energy independence and sustainability.	Electricity
Periodic Transmission Review (PTR)	A Periodic Transmission Review assesses the costs and performance of the electricity transmission system. It influences how transmission charges are set. These costs are passed through to commercial customers on their bills.	Regulation and Compliance

Q

Term	Definition	Category
Quadrature Load	Quadrature Load refers to the reactive component of electricity that does not perform useful work but is required to maintain voltage on the network. High quadrature load can lead to reactive power charges for some businesses. Managing equipment efficiency helps reduce unnecessary reactive demand.	Electricity
Quality of Supply	Quality of Supply describes how reliable and consistent the electricity or gas supply is for a business. It includes factors like voltage stability outages and frequency variations. Good quality of supply reduces equipment failures and operational downtime.	Electricity
Quarter Hourly Data	Quarter Hourly Data records electricity usage every fifteen minutes providing a more detailed profile than half hourly data. It is used in advanced analytics and for some flexible energy contracts. Businesses can use this data to pinpoint inefficiencies and manage load more precisely.	Metering

R

Term	Definition	Category
Regulated Asset Base (RAB)	The Regulated Asset Base is a funding model that allows energy infrastructure such as nuclear projects to recover costs from consumers during construction. It reduces financial risk for developers and encourages long term investment. Businesses see RAB costs included within non commodity charges.	Regulation and Compliance
Reactive Power	Reactive Power is the portion of electricity that supports voltage rather than performing useful work. High reactive power levels can trigger extra charges for some commercial sites. Improving power factor helps reduce reactive demand and associated fees.	Electricity
Reconciliation Charge	A Reconciliation Charge is applied when suppliers adjust previous bills to match accurate metering or settlement data. It corrects under or overcharging from earlier estimates. Businesses should review reconciliation statements to ensure accuracy.	Billing and Contracts
Red Zone DUoS Rate	The Red Zone Rate is the highest cost period in Distribution Use of System charges typically during early evening peak demand. Businesses on pass through contracts pay more for consumption in this window. Reducing usage in red zones helps cut electricity costs.	Electricity
Regional Network Charge	A Regional Network Charge varies depending on the location of a business and reflects local infrastructure costs. Different areas of the UK have different charges for electricity distribution. These charges form part of non commodity costs.	Electricity
Renewable Energy Certificate (REC)	A Renewable Energy Certificate verifies that electricity has been generated from renewable sources. Businesses use RECs to demonstrate sustainability commitments. Suppliers may bundle RECs into green tariffs.	Electricity
Renewable Energy Certificate (REC)	A REGO certificate proves that a unit of electricity was generated from a renewable source such as wind solar or hydro. Suppliers use REGOs to demonstrate the renewable content of their tariffs and provide transparency to customers. Businesses often request REGOs when choosing green energy products to support sustainability reporting and environmental goals.	Electricity
Renewable Heat Incentive (RHI)	The Renewable Heat Incentive was a government scheme that provided payments to businesses generating heat from renewable sources such as biomass or heat pumps. Although closed to new applicants existing participants still receive payments. It encouraged long term investment in low carbon heat.	Regulation and Compliance
Renewables Obligation (RO)	The Renewables Obligation requires suppliers to source a portion of electricity from renewable generators. Costs are recovered through RO charges on business bills. It supports investment in renewable energy across the UK.	Regulation and Compliance
Residual Charge	A Residual Charge is applied to recover remaining network costs that are not linked to consumption. It is part of the Targeted Charging Review reforms. Businesses pay residual charges regardless of usage level.	Billing and Contracts
Resistance Losses	Resistance Losses are electrical losses that occur when energy travels through cables and components. They increase with distance and load. These losses form part of overall network efficiency costs.	Electricity
Retrofit Upgrade	A Retrofit Upgrade involves installing new technology or equipment to improve energy efficiency in an existing building. Examples include LED lighting insulation or upgraded controls. Retrofits help reduce long term operating costs.	General Energy
Rollover Contract	A Rollover Contract activates when a business fails to renew or switch before the contract end date. These contracts usually have higher rates and limited flexibility. Staying aware of renewal dates helps avoid rollover charges.	Billing and Contracts
Reactive Power Charge	A Reactive Power Charge is applied to sites with low power factor or high reactive demand. It encourages businesses to use electricity more efficiently. Installing correction equipment helps reduce these charges.	Electricity

S

Term	Definition	Category
Seasonal Demand	Seasonal Demand refers to how energy usage changes throughout the year due to weather and business activity. Gas consumption typically peaks in winter while electricity demand may rise during cooling periods. Understanding seasonal demand helps improve forecasting and procurement.	General Energy
Seasonal Time of Day (STOD Tariff)	An STOD Tariff charges different electricity rates depending on both the time of day and the season. It encourages businesses to reduce usage during high demand periods. STOD tariffs can offer savings for sites that can shift consumption.	Billing and Contracts
Streamlined Energy and Carbon Reporting (SECR)	SECR is a mandatory reporting scheme requiring qualifying businesses to disclose energy consumption and carbon emissions annually. It promotes transparency and encourages reduction of environmental impact. Non compliance can lead to financial penalties.	Regulation and Compliance
Settlement Data	Settlement Data is the meter and consumption information used within the energy market to calculate accurate financial settlements. It ensures suppliers pay correctly for the energy their customers use. High quality settlement data reduces billing disputes.	Metering
Shape Risk	Shape Risk is the risk that actual energy consumption will differ from forecast patterns used to price a fixed contract. Suppliers factor shape risk into fixed rates to cover unexpected usage profiles. Businesses with predictable consumption help reduce shape risk costs.	Billing and Contracts
Shipper	A Shipper arranges for gas to be transported through the national system to suppliers and customers. Although businesses do not deal with shippers directly their costs form part of gas pricing. Shippers ensure secure and efficient gas delivery.	Gas
Shortfall Charge	A Shortfall Charge applies when a business or generator does not meet contracted levels of output or reduction. These charges protect system reliability and ensure compliance. Understanding shortfall risks helps businesses manage obligations.	Billing and Contracts
Smart Meter	A Smart Meter automatically sends usage data to the supplier and provides more accurate billing. It can also show real time consumption through an in premises display or online portal. Smart meters reduce estimated bills and support energy management.	Metering
SME Tariff	An SME Tariff is designed for small and medium sized businesses with lower energy consumption. It usually offers simpler pricing and shorter contract lengths compared to I and C tariffs. SME tariffs help businesses manage costs without complexity.	Billing and Contracts
Solar PV	Solar PV refers to photovoltaic panels that convert sunlight into electricity. Businesses use solar PV to cut electricity bills and reduce carbon emissions. Pairing PV with battery storage increases onsite usage and savings.	Electricity
Spinning Reserve	Spinning Reserve is backup generation that runs at low output so it can respond quickly to sudden demand changes. It helps maintain grid stability and prevent outages. Its cost contributes to non commodity charges on electricity bills.	Electricity
Spot Price	The Spot Price is the real time wholesale price of electricity or gas for immediate delivery. It changes rapidly based on demand supply and market events. Businesses on flexible contracts may be exposed to spot price movements.	Billing and Contracts
Standing Charge	A Standing Charge is a fixed daily cost that covers network access metering and supplier admin. It applies regardless of how much energy is used. Reviewing standing charges helps businesses understand total contract cost.	Billing and Contracts
Sub Meter	A Sub Meter measures energy use for specific areas or equipment within a building. It helps allocate costs identify inefficiencies and monitor performance. Sub metering is common in multi tenant sites and energy audits.	Metering
Supplier of Last Resort SoLR	A Supplier of Last Resort is appointed when an energy supplier fails. It ensures continuity of supply for affected businesses. Customers are moved to the SoLR until they choose a new contract.	Regulation and Compliance
Supply Capacity	Supply Capacity refers to the maximum amount of electricity a site can access from the network. It influences standing charges and capacity related fees. Adjusting capacity to match actual demand helps reduce costs.	Electricity
Supply Number	The Supply Number is the identification code for an electricity meter shown on the bill. It helps suppliers and engineers locate and verify the correct supply point. Accurate supply numbers ensure smooth switching and billing.	Metering
System Operator	A System Operator manages the real time flow of electricity or gas to ensure balance and reliability. In the UK this role is performed by National Grid ESO for electricity. System operator services form part of non commodity charges.	Electricity

T

Term	Definition	Category
Targeted Charging Review (TCR)	The Targeted Charging Review is an Ofgem reform that changes how residual network charges are applied. It aims to make charges fairer and more consistent across all users. Businesses now pay residual charges through fixed bands rather than usage-based rates.	Regulation and Compliance
Tariff	A Tariff is the pricing structure for a business electricity or gas contract. It includes unit rates standing charges and other fees. Choosing the right tariff helps control costs and match operational needs.	Billing and Contracts
Telemeter	A Telemeter is a meter that transmits readings automatically to the supplier. It reduces manual checks and improves billing accuracy. Telemetering supports smoother switching and settlement processes.	Metering
Therm	A Therm is a unit of heat energy used mainly in gas calculations. It measures the energy content of natural gas and supports billing conversions. Businesses rarely see therms on bills but they help explain gas usage history.	Gas
Three Phase Supply	A Three Phase Supply delivers electricity across three alternating currents and is used for high load equipment. It provides more stability and capacity than single phase supply. Larger commercial sites typically require three phase connections.	Electricity
Time of Use Tariff (TOU)	A Time of Use Tariff charges different rates depending on the time of day. Businesses can save money by shifting energy use to cheaper periods. TOU tariffs support grid balancing and demand reduction.	Billing and Contracts
Total Final Consumption	Total Final Consumption measures all energy used by a business including electricity heating and transport fuel. It is used for sustainability tracking and carbon reporting. Lowering final consumption helps reduce operating costs and emissions.	General Energy
Transportation Charge	A Transportation Charge is applied to cover the cost of moving gas through the national and regional pipeline networks. It forms part of business gas bills and varies depending on distance capacity and system demand. Transportation charges ensure safe and efficient delivery of gas to commercial sites.	Gas
Transmission Losses Line Losses	Transmission Losses also called line losses refer to the energy lost as electricity travels across the high voltage transmission network. Losses occur due to resistance and heat within cables and equipment. The cost of these losses is included within non commodity charges and affects all business electricity bills.	Electricity
Transmission Peak Rate (TPR)	The Transmission Peak Rate refers to higher charges applied during periods of high national electricity demand. These costs reflect pressure on the transmission network. Businesses can reduce TPR exposure by avoiding peak times.	Electricity
Transmission Use of System (TUoS)	Transmission Use of System charges cover the cost of operating and maintaining the national high voltage electricity network. These charges are paid by suppliers and passed on to business customers through their bills. TUoS costs help ensure the transmission system remains reliable and capable of meeting national demand.	Electricity
Transmission Charge	A Transmission Charge covers the cost of transporting electricity across the national high voltage network. It is included in business energy bills as part of non commodity costs. These charges support infrastructure maintenance and system reliability.	Electricity
Transmission Constraint	A Transmission Constraint occurs when the high voltage network cannot carry electricity freely between regions. This can increase balancing costs and influence wholesale prices. Large businesses may feel the impact through pass through charges.	Electricity
Triad	A Triad is one of the three highest national peak demand periods during winter evenings. Historically businesses could cut costs by reducing usage during potential triad periods. Recent reforms have changed triad incentives but peak management remains important.	Electricity

U

Term	Definition	Category
UK Emissions Trading Scheme (UK ETS)	The UK ETS is a carbon trading system that sets a cap on emissions for energy intensive businesses. Companies must hold allowances for every tonne of carbon they emit encouraging reductions over time. The scheme influences carbon reporting and long term sustainability planning.	Regulation and Compliance
Unaccounted for Gas (UAG)	Unaccounted for Gas refers to the difference between measured gas entering the network and the amount billed to customers. It includes losses measurement errors and theft. UAG costs are shared across gas users through industry processes.	Gas
Unit Price	The Unit Price is the cost a business pays for each kilowatt hour of electricity or gas used. It forms the main variable part of the bill and changes depending on contract type market conditions and supplier margins. Understanding the unit price helps businesses compare offers and forecast overall energy spend.	Billing and Contracts
Unmetered Supply	An Unmetered Supply is an electricity connection without a meter typically used for street lighting signage or telecoms equipment. Charges are based on estimated usage rather than actual readings. Businesses with unmetered assets must register them with the DNO.	Metering
Utility Broker	A Utility Broker helps businesses find energy water or telecoms contracts by comparing market options. They assist with tendering negotiation and contract management. Transparency over broker fees is important for fair comparisons.	Billing and Contracts
Utility Scale Generation	Utility Scale Generation refers to large energy projects such as wind farms solar parks or major gas plants. These assets supply power directly to the grid and influence national prices. Businesses may purchase output from utility scale projects through PPAs.	Electricity
Usage Profile	A Usage Profile shows how electricity or gas consumption changes over time. It helps businesses identify peak periods and efficiency opportunities. Accurate profiles support better procurement and operational planning.	General Energy
Total Final Consumption	Total Final Consumption measures all energy used by a business including electricity heating and transport fuel. It is used for sustainability tracking and carbon reporting. Lowering final consumption helps reduce operating costs and emissions.	General Energy
Transportation Charge	A Transportation Charge is applied to cover the cost of moving gas through the national and regional pipeline networks. It forms part of business gas bills and varies depending on distance capacity and system demand. Transportation charges ensure safe and efficient delivery of gas to commercial sites.	Gas
Transmission Losses Line Losses	Transmission Losses also called line losses refer to the energy lost as electricity travels across the high voltage transmission network. Losses occur due to resistance and heat within cables and equipment. The cost of these losses is included within non commodity charges and affects all business electricity bills.	Electricity
Transmission Peak Rate (TPR)	The Transmission Peak Rate refers to higher charges applied during periods of high national electricity demand. These costs reflect pressure on the transmission network. Businesses can reduce TPR exposure by avoiding peak times.	Electricity
Transmission Use of System (TUoS)	Transmission Use of System charges cover the cost of operating and maintaining the national high voltage electricity network. These charges are paid by suppliers and passed on to business customers through their bills. TUoS costs help ensure the transmission system remains reliable and capable of meeting national demand.	Electricity
Transmission Charge	A Transmission Charge covers the cost of transporting electricity across the national high voltage network. It is included in business energy bills as part of non commodity costs. These charges support infrastructure maintenance and system reliability.	Electricity
Transmission Constraint	A Transmission Constraint occurs when the high voltage network cannot carry electricity freely between regions. This can increase balancing costs and influence wholesale prices. Large businesses may feel the impact through pass through charges.	Electricity
Triad	A Triad is one of the three highest national peak demand periods during winter evenings. Historically businesses could cut costs by reducing usage during potential triad periods. Recent reforms have changed triad incentives but peak management remains important.	Electricity

V

Term	Definition	Category
Value Added Tax (VAT)	Value Added Tax is a government tax applied to business energy bills. Most commercial users pay the standard rate while eligible charities and low usage sites may qualify for a reduced rate. Understanding VAT rules helps ensure accurate billing and compliance.	Billing and Contracts
Variable Rate Tariff	A Variable Rate Tariff is an energy contract where the unit rate changes in line with market conditions. Prices can move up or down at any time which creates both risk and opportunity. Businesses on variable tariffs need to monitor the market closely to avoid unexpected cost increases.	Billing and Contracts
Voltage	Voltage is the electrical pressure that pushes current through circuits and equipment. Businesses operate on either low voltage or high voltage supplies depending on site size and load. Understanding voltage levels is important when planning upgrades or installing large machinery.	Electricity
Voltage Dip	A Voltage Dip is a short drop in voltage that can affect sensitive equipment or disrupt processes. It may be caused by faults switching operations or high network demand. Repeated dips may require investigation by the supplier or DNO.	Electricity
Voltage Optimisation	Voltage Optimisation is a technology that reduces incoming voltage to the optimal level for equipment. It helps cut electricity consumption and improves equipment lifespan. This solution is common in commercial buildings with consistently high voltage supply.	Electricity
Voltage Transformer	A Voltage Transformer reduces high voltage electricity to lower levels suitable for metering and protection systems. It ensures accurate measurement of consumption at large commercial or industrial sites. Voltage transformers are essential for high voltage and CT metering arrangements.	Electricity
Volumetric Charge	A Volumetric Charge is a cost based on the amount of electricity or gas a business uses. It applies alongside fixed charges such as standing charges. Reducing consumption directly lowers the volumetric element of the bill.	Billing and Contracts
VPP Virtual Power Plant	A Virtual Power Plant is a connected network of distributed energy assets such as batteries solar and flexible loads. It allows businesses to participate in balancing services and earn revenue. VPPs support grid stability and help integrate renewable energy.	Electricity

W

Term	Definition	Category
Watt	A Watt is the basic unit of power that measures the rate of energy use. Electrical appliances are rated in watts to show how much electricity they consume. Understanding wattage helps businesses manage load and reduce peak demand.	Electricity
Watt Hour (Wh)	A Watt Hour represents one watt of power used for one hour. It is the foundation of the kilowatt hour which appears on energy bills. Watt hours help explain how small amounts of energy usage add up over time.	General Energy
Weather Correction Factor	A Weather Correction Factor adjusts gas consumption data to account for changes in outdoor temperature. It helps compare usage year to year more accurately. Businesses use weather correction in audits and consumption analysis.	Gas
Whole Current Meterering	Whole Current Metering is used for smaller commercial electricity supplies where the meter directly measures the full electrical load without external transformers. It is common for low to medium demand sites such as shops offices and small industrial units. Whole current meters are simpler to install and maintain compared to CT metering and usually support smart and automated data collection.	Metering
Wholesale Market	The Wholesale Market is where suppliers buy electricity and gas before selling it to businesses. Prices change frequently based on supply demand and global events. Wholesale trends strongly influence business contract rates.	Billing and Contracts
Wind Generation	Wind Generation refers to producing electricity from wind turbines. It is one of the UK’s largest renewable sources contributing to lower carbon intensity. Businesses may purchase wind backed tariffs or invest in onsite wind systems.	Electricity
Winter Peak Demand	Winter Peak Demand describes the highest national usage periods during cold months. These peaks influence pricing balancing costs and capacity requirements. Businesses can reduce exposure by managing consumption during winter evenings.	General Energy
Wire Losses	Wire Losses are small amounts of electricity lost as heat when power travels through cables. These losses are included in network costs paid by businesses. Reducing distance and improving cabling helps minimise losses in local installations.	Electricity
Working Gas Capacity	Working Gas Capacity refers to the amount of gas that can be stored and withdrawn from UK storage facilities. It helps manage seasonal demand fluctuations and improves security of supply. Storage levels can influence wholesale gas pricing.	Gas

X

Term	Definition	Category
Xoserve	Xoserve manages the central data services for the UK gas industry including meter points consumption data and settlement processes. It ensures accurate information is shared between suppliers shippers and network operators. Businesses rely on Xoserve data for correct billing and smooth switching.	Gas
X Capacity Band	An X Capacity Band is a classification used in network or transport charging models to group sites based on their capacity needs. It helps determine fixed charges and non commodity costs. Accurate banding ensures fair billing.	Electricity

Y

Term	Definition	Category
Year Ahead Price	The Year Ahead Price is the forecast wholesale cost of electricity or gas for delivery over the next twelve months. It is commonly used in procurement strategies and helps businesses decide when to lock in fixed rates. Monitoring the year ahead price provides insight into long term market trends.	Billing and Contracts
Yearly Consumption	Yearly Consumption is the total amount of electricity or gas a business uses over a full twelve month period. It is used to size contracts assess efficiency and benchmark performance against similar sites. Accurate yearly consumption data improves budgeting and procurement decisions.	General Energy
Yield from Generation	Yield from Generation refers to the total energy produced by onsite systems such as solar panels or CHP units. It helps assess the performance and financial return of renewable investments. Higher yields reduce reliance on grid electricity and support sustainability goals.	Electricity
Y Factor Adjustment	A Y Factor Adjustment is used in some regulated charging models to account for inflation or cost changes across the network. It affects certain non commodity charges on business energy bills. Understanding these adjustments helps explain small annual pricing shifts.	Regulation and Compliance

Z

Term	Definition	Category
Zero Carbon Electricity	Zero Carbon Electricity refers to electricity generated without producing carbon emissions such as wind solar hydro or nuclear. Businesses choose zero carbon tariffs to reduce their environmental impact and support sustainability goals. It also helps improve carbon reporting accuracy.	Electricity
Zero Export System	A Zero Export System allows onsite generation such as solar PV to power a building without exporting surplus electricity back to the grid. This is used when export connections are limited or not permitted. It helps maximise onsite energy use.	Electricity
Zero Rated VAT	Zero Rated VAT applies to specific energy uses that qualify for a zero per cent VAT charge such as for certain charities or mixed use premises with low consumption. Businesses must meet strict criteria to receive zero rated VAT. Correct application reduces energy costs.	Billing and Contracts
Zone Charge	A Zone Charge refers to regional pricing variations for electricity or gas based on network zones. Charges differ depending on location infrastructure and demand. Businesses see zone charges reflected within their non commodity costs.	Billing and Contracts
Zone Meter	A Zone Meter measures gas or electricity usage in specific network zones for allocation and balancing purposes. It supports settlement processes and accurate cost distribution across regions. Businesses do not interact with zone meters directly but pay associated costs in their bills.	Metering
Zonal Pricing	Zonal Pricing is a system where energy prices vary by geographic zone based on supply and demand conditions. It encourages efficient use of network capacity and can reduce congestion. Businesses in constrained zones may face higher charges.	Billing and Contracts

We work with trusted UK suppliers

Why Switch Business Electricity?

Many businesses stay with the same supplier for years — often paying far more than they need to.

By comparing deals with WeSave, you could:

Cut costs by moving away from expensive out-of-contract rates
Fix your price for up to 3 years to protect against future rises
Gain peace of mind knowing you’re on a fair, transparent deal
Get help at every stage — from quote to renewal

Whether you run a café, workshop or warehouse, we’ll make sure your electricity works harder for your business.

Energy FAQs

Find answers to our frequently asked business energy questions below…

Why should I switch my business energy supplier?

Switching your business energy supplier can help you save money on your energy bills by securing better rates and contract terms.

Additionally, switching to a green energy supplier can help you reduce your business’s carbon footprint and improve your sustainability efforts.

When should I start to think about switching?

It is recommended that you start thinking about switching your business energy supplier at least 6 months before your current energy contract ends. This will give you enough time to compare energy plans and select the best one for you.

What impacts electricity and gas rates?

Many factors impact the commercial electricity and gas tariffs you can secure for your business. The main variables that affect the price you pay for your supply are:

Wholesale prices
Annual consumption
Location and size of premises
Business sector
Credit rating

Some businesses may associate these obstacles as a reason not to switch business suppliers.

Unfortunately, this means many companies are on the wrong type of tariff. We’re here to help you navigate the energy market and secure the best deal available from our panel of trusted suppliers.

Can I switch business energy with multiple buildings?

If you run a business with high energy usage or multiple locations, you may choose to install a multi-site meter.

This allows businesses with multiple premises or high usage to manage their energy with one contract. Your multi-site business energy contract covers the billing for more than one meter, whether at a single premise or multiple locations.

Some of the benefits of a multi-site meter are:

Greater management over multiple sites – Whether your business has 2 or 10 locations, a multi-site meter could help you manage your energy more effectively. This makes matters such as renewals easier to deal with.
Better management for single large sites – Instead of having several meters on one site, you could get a multi-meter that will cover your whole premises.
Further discounts may be available – You can leverage your buying power and get larger discounts when choosing a multi-site meter.

What is a half-hourly meter?

Half-hourly meters are for business premises recording a large amount of electricity consumption.

By law, your business must have a half-hourly meter if you have a maximum demand of 100kWh or greater in any 30-minute period during the day. These meters are great for managing business electricity to ensure that energy suppliers are not overcharging you based on estimated billing.

Do business energy tariffs offer a dual fuel option?

Dual fuel tariffs are for domestic customers only. Businesses must switch their gas and electricity separately.

Businesses can have the same supplier for both fuels, but they must be switched separately. You may be able to negotiate a better energy deal with the supplier if you decide to have a contract for both gas and electricity.

Will my business experience any downtime during a switch?

Switching your business electricity or gas supplier to start a new energy contract will not result in your premises connection being interrupted.

When you switch, your electricity and gas are supplied through the existing pipes and cables, it’s just the supplier that changes. This means there’ll be no disruption to your supply and no need for any extra digging or drilling at your premises.

What happens when my business energy contract rolls over?

If you don’t renew or renegotiate your energy deal during the renewal period – at the end of your business energy contract – you will be rolled over. Energy suppliers impose these contracts automatically. This means your company will be locked into an expensive renewal tariff for at least a year.

A minimum of two months before your current contract ends, your energy provider will contact you to let you know that a rollover contract will start if you take no action.

If you haven’t negotiated your tariff, you will likely be placed on a monthly rolling contract or a deemed rates contract. These rates are often much more expensive than negotiated rates.

The good news is that you can switch at any time with no exit fees. So, if you find that your energy contract has rolled over, you can compare the latest prices and start your switch today.

Does my business qualify for reduced VAT on energy?

Your business will qualify for the reduced rate of 5% VAT on energy if any of the following apply:

You use less than 1,000kWh of electricity per month.
You use less than 4,397kWh of gas per month.
You are a charitable or non-profit organisation.
At least 60% of your business energy is used for residential accommodation.

What is the Climate Change Levy (CCL)?

The Climate Change Levy (CCL) is an environmental tax on commercial energy use in the UK. It is an additional tax, alongside VAT, that certain businesses will pay on their energy.

It is designed to make UK businesses more sustainable. The more energy-efficient your business is, and the less carbon-creating energy you use, the less CCL you pay.

Your business may be exempt from CCL if any of the following apply:

You use less than 1,000kWh of electricity per month.
You use less than 4,397kWh of gas per month.
You are a charitable or non-profit organisation.
At least 60% of your business energy is used for residential accommodation.

Got any other questions?

Speak to a member of our friendly team by calling us today on 01872 495 111.

Our lines are open Monday to Friday, 9am – 5.30pm.

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