A

Agreed Capacity – An agreed amount of electrical load for a property, as stated in the property’s Connection Agreement with the local Distribution Network Operator (DNO).

Annual Quantity (AQ) – The sum of the consumption from either a single meter or multiple meters. This comes from National Grid, and is based on historical usage from previous years. Measured in kWh (electricity) or Therms (gas).

Automatic Meter Read (AMR) – AMR is the term given to a system that provides automatic meter readings remotely. It uses telephone technology and holds the ability to transfer data into a billing system.

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.

Available Supply Capacity (ASC) – 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 used by the National Grid Company to balance the supply and demand of electricity.

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.

Biogas – Biogas is generated when bacteria degrades biological material in the absence of oxygen, in a process known as anaerobic digestion. Since biogas is a mixture of methane (also known as marsh gas or natural gas) and carbon dioxide it is a renewable fuel produced from waste treatment.

Biomass & Biofuel – Biomass, also known as biofuels or bioenergy, it’s obtained from organic matter either directly from plants or indirectly from industrial, commercial, domestic or agricultural products. The use of biomass is classed as a ‘carbon neutral’ process because the carbon dioxide released during the generation of energy from biomass is balanced by that absorbed by plants during their growth.

C

Calorific Value (CV) – Amount of heat given by the specified quantity of gas. This is used to calculate the energy consumed based on the volume of gas used. It is measured in joules per kilogram.

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.

Carbon Capture / Storage (CCS) – A technological solution for capturing carbon dioxide as it is released into the atmosphere from fossil fuels either before or after combustion.

Carbon storage – Sometimes called ‘carbon sequestration’, this is the long-term storage of carbon or CO2 in the forests, soil, ocean, or underground in depleted oil and gas reservoirs, coal seams, and saline aquifers. Carbon Capture and Storage can be referred to as CCS.

Carbon Credits – A credit or permit arising from a greenhouse gas emissions reduction scheme, such as emissions trading, JI or CDM. Emissions are controlled by setting a cap on total emissions and allowing the market sector(s) to reach an economically balanced response via trading of emissions allowances.

Carbon Dioxide – An inert non-toxic gas produced from decaying materials, respiration of plant and animal life, and combustion of organic matter, including fossil fuels.

Carbon Dioxide Tonnage – In relation to carbon emissions, CO2 is measured in tonnes. A typical household has around 10.9 tonnes of CO2 emissions per year.

Carbon Footprint – A measure of the amount of carbon dioxide or CO2 emitted through the combustion of fossil fuels; can be measured on a personal or national level, or according to a specific activity, such as taking a flight to go on holiday.

Carbon Intensity – The amount of CO2 emitted for a given volume of electricity. It allows the emissions from different amounts of electricity to be compared. For example, a coal power station produces around 890 grams of CO2 for every kilowatt hour of electricity, whereas a gas-fired power station produces around 370 grams of CO2 for each kilowatt hour of electricity.

Carbon Neutral – An activity or process that doesn’t add to the net amount of CO2 in the atmosphere. As the organisation or product will typically have caused some greenhouse gas emissions, it is usually necessary to use carbon offsets to achieve neutrality.

Carbon Offset – A carbon offset negates the overall amount of carbon released into the atmosphere by avoiding the release or removing it elsewhere – e.g. through a renewable energy or energy conservation project. Voluntary carbon offsetting schemes can help people reduce their carbon footprint, but should only be used as a last resort. It is also important that a credible scheme is used.

Carbon Trading – The trading of personal, corporate, or national credits to maintain and gradually reduce carbon emissions. Companies, nations, or individuals who beat the targets can sell the balance as credits to those that exceed their limits.

Climate Change Levy (CCL) – CCL is a government-imposed tax to encourage reduction in gas emissions and greater efficiency of energy used for business or non-domestic purposes.  CCL is chargeable only on units/kWh used and not on any other component of the bill, e.g., standing charge.  The rate of CCL is now index-linked and therefore likely to increase on 1 April each year.

Under current legislation, where VAT is charged at the standard rate, CCL (plus VAT on CCL) will usually be added to the bill.

Where VAT is charged at the reduced rate, the supply is automatically excluded from CCL.

Where VAT is charged at the standard rate, but sites are entitled to full or partial relief from CCL, you will need to submit a PP11 Supplier Certificate for each site to advise us what percentage of relief is applicable.  PP11s are only available from HM Revenue & Customs (HMRC) and can be downloaded from their website www.hmrc.gov.uk.  Please note that PP11 Supplier Certificates are not transferable between suppliers.

Contract Price – Price of a unit of gas or electricity which the supplier charges the customer.

Corrector Meter – For sites using large amounts of gas it is often deemed necessary to measure the temperature and pressure variations more accurately rather than just applying a fixed conversion factor. In these cases, an additional “corrector” meter is attached to the meter.

D

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.

Data Aggregator (DA) – The agent appointed to aggregate the meter reading data which is received from the Data Collectors (DC) and subsequently forwarded to the Supplier.

Data Collector (DC) – An organisation accredited by the Pool Accreditation Body 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, by Metering System, 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 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 Losses (Dloss) – Charges for the loss of distributing power through the wires.