A
AQ or AAQ Annual Quantity or Annual Agreed Quantity
Automated Meter Reading (AMR) A meter which automatically collects data which is transferred to a central database for billing.
Availability (KVA) Availability or Agreed Capacity refers to the limit of capacity for a site.
Available Supply Capacity Also known as the Agreed Capacity, this is an agreed amount of electrical load for a property, as stated in the property's Connection Agreement with the local Distribution Network Operator (DNO).
B
Balancing Mechanism The mechanism by which electricity demand is matched with electricity generation as near to real time as possible.
Balancing services Use of System Charges (BSUoS Charges that are paid by electricity suppliers based on the energy taken from or supplied to the National Grid system in each half-hour settlement period.
Base Load Base load is the level below which electricity demand never drops, i.e. a site with a high maximum demand of 750 kVA whose demand never drops below 250 kVA would have a base load of 250 kVA.
Bearish Biofuels
Biomass Biomass is degradable biological material which can be used to generate biofuels.
Bullish Believing that market prices are about to rise.
C
Capacity Charge A set charge by the local Distribution Network Operator (DNO) for investment and maintenance of the electricity network, based on the Agreed Capacity of a property. This can also be called the Availability Charge.
Climate Change Levy (CCL) CCL is a government-imposed tax to encourage reduction in gas emissions and greater efficiency of energy used and not on any other component of the bill.
Combined Half Hourly (HH) Data Charge Costs associated with collecting and handling metering data from half hourly (HH) read meters.
Communication Charges Communication charges cover the cost of the telephone line or cellular link used for remote access to the electricity meter. This applies to half-hourly metered sites only.
D
Data Collector (DC) An organisation accredited to carry out Data Collection for Half Hourly (HH) Metering Systems. The DC is appointed by the Suppliers to retrieve and validate metering data and forward it to the Data Aggregator. The DC may be appointed by the customer but must always be accredited and contracted to the customer’s Supplier.
Data Logger A device used to record meter readings and automatically transmit them to the meter reading agency.
Deemed Contract A contract which is deemed to apply when a customer begins a new supply contract at a property and has not signed a written contract for its supply. These contracts have a defaulted rate for supply until a customer requests a fixed price for a fixed period
Distribution Network Operators (DNO) Companies that are responsible for operating and maintaining the networks that connect electricity consumers to the national transmission system and provide interconnection with embedded generation. There are 15 regions in the UK operated by 10 companies.
Distribution Use of System Charges (DUoS) These charges are published costs made by each Distribution Network Operator for delivering electricity from the Grid Supply Point to the customers’ premises.
Demand The rate at which electric energy is used in any instant or average over a period of time. Usually expressed in kilowatts (kW) or kilovolt amperes (kVA). See also Maximum Demand.
E
Electricity Market Reform (EMR) This is the Government initiative to make sure the UK can deliver low carbon electricity supplies for UK plc whilst maintaining our carbon reduction targets. It is estimated that due to plant closures and the need to replace and upgrade the UKs electricity infrastructure, by 2020 the UK electricity sector will need to attract around £110 billion investment in new networks and increase our generating capacity.
Energy Only An offer of electricity which has no delivery charges (DUoS & TNUoS) added at the point of quotation.
Energy Performance Certificate (EPC) In response to the Energy Performance of Buildings Directoive (EPBD): as of the 6th April 2008, all commercial property for sale, let or in construction now require a commercial Energy Performance Certificate (EPC). An EPC gives a property an energy efficiency rating from A (most efficient) to G (least efficient).
F
Feed-in Tariffs (FiTs) Payments made by FIT licensed electricity suppliers to energy users who generate their own electricity. They are designed to encourage the adoption of renewable energy sources and to help accelerate the move toward grid parity.
Forward Contract An agreement to buy electricity from another party at a specified time in the future at a specified price with money changing hands at the delivery date.
Flexible Contracts An energy purchasing structure will provide the opportunity to extend energy purchasing decisions over a number of periods. You enter into a fixed duration framework agreement with your supplier but the framework allows you to break your contract into smaller sections, so you can buy forward in seasons, quarters, months or the next day.
G
Gas Day Gas companies may define the start and end of their “Gas Day” in terms of 06:00 to 06:00, 08:00 to 08:00, and 12:00 to 12:00.
Gigawatt The equivalent to one thousand megawatts (MW) or one million kilowatts (kW).
Grid Supply Point (GSP) The (GSP) is the point at which energy is taken from the National Grid transmission system into a local distribution system.
H
Half Hourly Data (HHD) HHD is the product of the half-hourly meter. The data is usually made available to end users by way of a spreadsheet. A full years' half-hour data will be a spreadsheet with approximately 18,520 cells of data.
Half Hourly Meters Since April 1998, Code 3 or Code 5 meters have been mandatory for all sites over 100 kVA, and voluntary for sites under 100 kVA. This meter sends your consumption record by telephone or radio every half-hour to a central data bank. The supplier will then receive this information from the data collector and bill the client accordingly.
I
Imbalance A situation where there is a difference between the amounts of power produced (supply) and the amount of electricity contracted or sold (demand). At such times spare capacity in the system can be brought on stream, normally at a much higher price.
J
Joule A unit of measurement for energy equal to one watt-second.
K
Kilovolt Amperes (kVA) Also known as Total Power. The resultant effect of the active of the active (kW) and reactive (kVArh) power is the total power measured in kVA. KVA= kW/power factor.
Kilowatt (kW) A standard unit of electrical power equal to 1,000 watts. Kilowatts are the units used to measure Maximum Demand.
Kilowatt Hourly (kWh) A measure of electrical energy. One kilowatt hour (kWh) of energy is the energy produced by one kilowatt acting for one hour. Electricity meters record in kilowatt hours and electrical consumption is billed on kilowatt hours.
L
Letter of Authority (LOA) A Letter of Authority is the means by which you instruct a third party to act on your behalf.
Load Factor Ratio of average energy demand (load) to maximum demand (peak load) during a specific period. Usually stated as a percentage or number of hours used.
M
Maximum Demand (MD) Maximum Demand is the highest peak of usage (kWh) in any Half Hour during a calendar month or between two meter readings measured in either kW or kVA. This value is multiplied by 2 to give the MD on an hourly basis.
Mega Watt Hour (MWh) Mega Watt hour, one thousand kWh. A 1 MW power-generating unit running for 1 hour produces 1 MWh of electrical energy.
Megawatt (MW) A unit of power equal to 100kW.
Meter Point Reference Number (MPRN) Gas A unique meter point reference number that identifies a specific gas supply point and will not change even if the meter is replaced.
Meter serial Number (MSN) This is a unique number which should be clearly visible on the front of the meter. This would change with the installation of a new meter.
Meter Operator (MO) Generators with a Half-hourly metered supply requirement must have an agreement with a Meter Operator in place. The MO will provide the meter and will also be responsible for installation and maintenance of the communication line.
N
National Grid The National Grid owns the main transmission systems and is responsible for transmitting the electricity from the generator to the local DNO's area.
Non Half Hourly (NNH) Meters Unlike HH meter a meter reader must visit the site to obtain readings.
O
Official Journal of the European Union (OJEU) OJEU is the publication in which all tenders from the public sector which are valued above a certain financial threshold according to EU legislation, must be published. The legislation covers organisations and projects that receive public money. Organisations such as Local Authorities, NHS trusts, MOD, Central Government Departments and Educational Establishments are all covered by the legislation.
OFGEM The Office of Gas and Electricity Markets. The industry regulator.
OFWAT Office of Water Services. The economic regulator of the water and sewerage sectors in England and Wales
P
Pass-through Charge A pass-through cost is a cost that is charged to the energy supplier, but is then “passed through” directly to the consumer.
Power Factor This relates to how efficiently electricity is used on your site. Certain types of equipment cause poor Power Factor which reduces the capacity of the network to supply power. Distribution Network Operators' (DNO) can charge customers for this through power factor charges.
Profile Class Identifies the type of the electricity supply. 00= Half Hourly Supply, 01-02=domestic supply (NHH), 03-04=quarterly supply (NHH) and 05-08=monthly supply (NHH).
R
Reactive Charges Charges applied to a client's invoice in cases where certain suppliers and distribution companies enforce a penalty for Reactive Power use.
Reactive Power (kVArh) This is the difference between the electricity supplied and the electricity converted into useful power. If the difference is large, i.e. there is a large amount of power being wasted, it puts an additional strain on the distribution network. The loss of power being can be caused by kinetic energy (heat) or through defective machinery. This is measured via the Reactive register on a meter and is charged to the customer depending on how much they accumulate.
Regional Electricity Company (REC) Regional Electricity Company. The UK is spilt into local electricity regions. Each REC is responsible for supply to domestic, commercial and industrial customers in its area.
Renewable Energy Certificates (REC's) REC's also known as 'Green Certificates', green tags, or tradable renewable certificate, represent the environment attributes of the
Renewable Obligation Certificates (ROC) Eligible renewable generators receive Renewable Obligation Certificates (ROCs) for each MWh of electricity generated. These certificates can then be sold to suppliers.
S
Settlement Agency Fee Elexon, the UK's Balancing and Settlement Code Company, charge for making sure all parties involved in distributing, supplying and measuring energy supply are paid appropriately.
Sewerage Waste matters discharged into the public sewer system through a series of drains and pipes. Also known as wastewater or sewage.
Smart Meters Any meter which allows for the identification of consumption in more detail than a conventional meter. Smart meters will generally also include a means of communicating information to a central data collection site for management or/and billing purposes.
Standing Charge Is a daily or monthly charge to contribute towards installation, maintenance and administration costs for the local Distribution Network Operator (DNO).
Supply Number S-Number (also known as MPAN – Meter Point Administration Number). A unique number identifying the distribution company and the location of the metering point.
Surface Water Rainwater that falls onto domestic and commercial premises and public highways.
Seasonal Time of Day (SToD) This is a unit based supply offer where electricity is supplied at different unit rates according to the time of day the power is taken by the customer. Typically they have different tariffs for Day Night, Summer Day and Winter Day and Winter Peak supply times, generally between 4pm and 7pm. In addition to this they often have an Evening supply period. STODs can have between 4 and 56 different unit rates in them.
T
Take-or-Pay (ToP) A form of gas/electricity supply contract which provides that a minimum quantity of gas/electricity in a period of time be paid for, whether or not delivery is accepted by the purchaser. Failure to take this amount still requires the buyer to pay for the full contracted volume.
Trade Effluent Trade effluent is any liquid waste (effluent), other than surface water and domestic sewage that is discharged from premises being used for a business, trade or industry.
Transmission The transfer of electricity at high voltage from the power stations across the UK through wires on pylons to points where it can be distributed to users. This is known as the Grid System and is owned and operated by the National Grid Company (NGC).
Transmission Network Use of System (TNUoS) The charges are incurred for transmitting electricity across the National Grid network from the source of generation to the network of the local distribution company. The level of these charges is usually calculated by applying a rate charge to the TRIAD demand level.
Transportation Charge A charge made by National Grid for the national transport of the shippers' gas through the gas network (National and Regional Transmission system and the low and medium pressure distribution system) to the customer. The transportation charge consists of three elements, which are dependent on the locations of the particular terminal and off-take site: capacity charge; commodity charge; and site charge.
Triad It is used to calculate TNUoS Charges. Triad charges are proportional to the client's electricity demand at the three highest national system peaks in any winter (November to February). The Triad is calculated by looking at these three maximum demand points (in kW) and then averaging the total.
U
Unit price The price paid per unit of energy used (e.g. in kilowatt hours). The unit price generally includes costs such as transportation but excludes standing charges, government taxes such as VAT or the Climate Change Levy, or any other third party costs. For Energy Only contracts transportation costs are excluded.
V
Volatility A measure of the rate of fluctuations in the relevant market price, often referred to as historical volatility and is calculated from the last twenty published closing prices.
W
Watt (W) A unit of electrical measurement equal to one ampere under a pressure of one volt.
Watt hour (Wh) A unit of electrical measurement equal to one watt of power supplied to, or taken from, an electric circuit steadily for one hour.
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Finance Office - 1 The Guild, Preston, Lancashire PR1 1HT
Registered Address - 4 Croft Court, Whitehills Business Park, Blackpool, Lancashire FY4 5PR

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