0191 691 5014 [email protected]

Things don't need to be complicated

We’ll walk you through the process without bamboozling you with complicated terms.

Glossary of Terms

Clear by name, clear by nature, we’re here to ensure you understand your energy contract and the options available to you.

The following list details some of the more commonly used terms and what they mean.

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)

It is the sum of the annual consumption of all meters on a site. This comes from National Grid, and is based on historical usage from previous years. Measured in kWh (electricity) or Therms (gas). Supply Point AQ is the total annual consumption of all meters on a site. Meter Point AQ is the AQ for a particular Meter Point.

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.

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 Reduction Commitment (CRC)

The CRC is a UK government emissions trading scheme for large organisations which are not eligible for EU Emissions Trading. This includes banks, large offices, universities, large hospitals, large local authorities and central government departments. The scheme is mandatory. The CRC is expected to deliver emissions reductions totalling 0.5m tonnes of carbon (Mtc) per year by 2015.

Climate Change

The variation in the Earth’s global climate over time. Man-made climate change is a variation directly attributable to human behaviour.

Climate Change Agreement

An agreement between the Government and a business user, whereby a reduced rate of Climate Change Levy is payable in return for a commitment by the user to achieve certain pre-determined targets for energy usage or carbon emissions.

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.

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.

CT Metering

Metering that is 100 amp and above.

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.

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.

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.

DUoS (Distribution Use of Systems)

The RECs receive a market average of 20% of the electricity cost for distribution and this cost is paid irrespective of whether they are responsible for supply.

Energy Only

An offer of electricity that has no delivery charges (DUoS & TUoS) added at the point of quotation.

Exit Zone

A defined zone in which the point of gas offtake is situated.

The Feed-in Tariffs (FIT)

The government programme designed to promote the uptake of renewable and low-carbon electricity generation technologies, whereby everyone contributes. This can be included in the rate or a separate amount on your bill.

Fixed Charge

A daily, monthly or quarterly charge levied by the supplier and is in addition to the standing charge.

Fixed Term Contracts

Supply contract for a fixed price, over a fixed period of time which gives customers a constant price. Fixed Charges include Standing Charges and Availability Charges.

Green Certificates

An official record proving that a specified amount of green electricity has been generated.

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.

Half Hourly (HH) Meters

A communication device connected to the meter allowing the data collector to remotely connects to the meter, obtaining half-hourly consumption.

Half Hourly Data (HHD)

HHD is the product of the half-hour data 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.

High Voltage (HV)

High Voltage (11,000 Volts or above).

Independent Public Gas Transporter (IGT)

An independent company who has responsibility of the maintenance of a gas supply network.

kVa (Kilo Volt Amperes)

Power Factor adjusted kW demands = kVa (true power).

kWh (Kilowatt-Hours)

Electricity consumption (as opposed to maximum demand) is measured in kilowatt-hours.

Large Supply Point

A supply point where the reference consumption actual quantity (AQ) is equal to or exceeds 732,000 kWh/25,000 therms per annum.

Line Loss Factor

Line Loss Factor codes are used to calculate the related DUoS charges for an MPAN. The figure gives us the voltage scale of the Mpan and reflects both the amount of transmission infrastructure used to supply the point and the amount of energy lost through heat etc

Low Voltage (LV)

Low Voltage, normally at 240 or 415 Volts.

Maximum Demand

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.

Meter Asset Manager (MAM)

A role that can be taken on by a number of parties who will manage a portfolio of meters

Meter Operator (MOp)

The organisation appointed to maintain metering equipment.

Meter Operator Charges (MOp Charges)

This charge covers the cost of maintaining metering equipment.

Meter Serial Number

The number stamped on the front of the meter. This changes when meter is exchanged.

Non Half Hourly (NHH) Meters

Unlike HH meter a meter reader must visit the site to obtain readings. There are different tariffs (SSC) available.

Non-Daily Metered (NDM) Supply Point

Volume of gas consumed at supply point is recorded at monthly, quarterly or longer intervals by traditional meter reading.

Non-Domestic

A supply point with an AQ of 73,200 kWH (2,500 therms) is deemed as a domestic site. A supply point with an AQ of over 73,00 kWh is deemed as non-domestic.

Pass Through Charges

Charges that appear on bills to cover the costs of third parties involved in the energy supply chain to deliver power.

Renewable Obligation (RO)

This is the main government market mechanism to support renewable energy. It is an obligation on all electricity suppliers to supply a certain amount of their electricity sales from accredited renewable sources under the Climate Change Levy exemption scheme.

Smart Metering

The ability to remotely read non-half hourly (NHH) meters. Data is more reliable and more accurate bills are produced.

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.

Take Or Pay

Percentage of gas purchased by the buyer from the seller against the Minimum Bill Quantity.

Triad

It is used to calculate TUoS Charges. the TRIAD is calculated by looking at the three maximum demand points (in kW) of the supply at half hourly time periods, and then averaging the total. The figures used are usually selected from winter months, and at peak times, as these periods are set to reflect the point at which the highest demand occurs on the National Grid.

TUoS (Transmission Use of Systems)

An average of 6% of the electricity cost is paid to the National Grid to transmit the electricity from the generator to the local suppliers’ area.

Whole Current Meterering

Metering that is 100 amp and below.

t: 0191 691 5014

Lansdowne House, Lansdowne Court, Gosforth,
Newcastle Upon Tyne. NE3 1GF

© 2017 Clear Energy Consulting.