A Comprehensive glossary of key industry terms for Energy Brokers

AAHEDC is a scheme in the UK that provides financial assistance to electricity distribution networks operating in areas where the cost of electricity distribution is significantly higher than the national average. This ensures that consumers in these areas do not face disproportionately high electricity bills.

It is added to all electricity sold from the transmission system to all users in Great Britain.

ADR refers to a range of processes, such as mediation, arbitration, or negotiation, used to resolve disputes without resorting to litigation. It is often faster, less formal, and more cost-effective than going through the courts.

The ADR Register is an official list of certified Alternative Dispute Resolution (ADR) bodies that have been approved to offer dispute resolution services in specific sectors. These bodies are recognised by national authorities for their adherence to regulatory standards and the quality of their dispute resolution processes.

AQ or AAQ refers to the estimated annual consumption of gas for a particular site, measured in kilowatt-hours (kWh). This figure is used to calculate energy bills and manage supply agreements.

The AQ is typically based on historical usage data.

ASC refers to a designated supply chain that has received formal authorisation, ensuring that all entities within the chain comply with specific regulatory, quality, and safety standards.

Only Maximum Demand customers need to be concerned with ASC which refers to the amount of commercial electricity allowed for running industrial equipment.

BSUoS charges are fees levied on electricity suppliers and generators in the UK to cover the costs incurred by National Grid in balancing electricity supply and demand in real time. These costs include the deployment of balancing services, such as frequency control and reserve power, to ensure the stability of the electricity grid.

National Grid takes actions to ensure the transmission network remains functional on a day-to-day basis. These actions are wide ranging and often involve payments to third parties such as generators.

For example, when the system can’t transmit the power generated at a particular location to where there’s a demand for it, National Grid will reconfigure the system. They may increase or lower the amount of electricity being supplied to the system at different locations.

The costs incurred are known as constraint costs.  Along with other costs incurred, they are passed on equally to generators and suppliers as the Balancing Services Use of System (BSUoS) charge.

The Capacity Market is a mechanism introduced in the UK to ensure the security of electricity supply by providing payments to electricity generators and demand-side response providers to ensure they are available to meet peak demand.

It encourages investment in new capacity and ensures that existing capacity is maintained, especially during periods of high demand or when renewable generation is low.

Change of Tenancy (CoT) refers to the process and associated procedures that occur when the occupancy of a property changes hands, whether in a residential or commercial setting.

In the energy sector, CoT involves the transfer of responsibility for utility accounts, such as gas and electricity, from the outgoing tenant to the incoming tenant, ensuring accurate billing and continuity of service.

Contracts for Difference (CfD) is a UK government scheme designed to incentivise investment in low-carbon electricity generation by providing long-term price stability.

Under a CfD, the government pays renewable energy generators the difference between the market price and a pre-agreed “strike price” if the market price is lower. Conversely, if the market price is higher than the strike price, the generator pays the difference back to the government.

This mechanism ensures a steady revenue stream for generators while protecting consumers from high energy prices.

A CT Meter, or Current Transformer Meter, is a type of electricity meter used to measure high electrical currents in industrial and commercial settings.

Instead of directly measuring the current, the CT meter uses current transformers to step down the current to a lower, more manageable level for accurate measurement. This is essential in situations where the electrical load is too high for standard meters, allowing for safe and precise monitoring of electricity consumption.

A Data Aggregator (DA) is a role within the UK electricity market responsible for collecting, processing, and aggregating meter data from various Data Collectors (DCs).

The DA ensures that this data is accurately compiled and formatted before it is submitted to the central settlement systems for calculating energy supplier charges and balancing the electricity market.

The role of the DA is critical in maintaining the accuracy and integrity of energy consumption data used in market settlements.

A Data Collector (DC) is a role in the UK electricity market responsible for retrieving, validating, and processing meter data from electricity meters.

The DC ensures that the data collected is accurate, complete, and consistent before passing it to the Data Aggregator (DA) for further processing and settlement.

The DC plays a crucial role in ensuring the reliability of consumption data used in billing and market settlements.

A Data Flow Link is a designated connection within the UK energy market’s data exchange system, which facilitates the structured transfer of information between different market participants, such as suppliers, distributors, and settlement bodies.

These links ensure the accurate and timely exchange of data related to meter readings, consumption, and financial transactions necessary for market operations and settlements.

A Deemed Contract is a type of contractual arrangement that automatically comes into effect when a new tenant or property owner starts using electricity or gas services without having an explicit agreement with an energy supplier.

This contract is typically based on standard terms set by the supplier and is used to ensure continuity of service while formal contractual terms are negotiated.

Deemed Contracts often come with higher rates and less favorable terms compared to standard contracts.

A Disconnected or De-energised Meter refers to an electricity or gas meter that has been disconnected from the supply network, meaning that no energy is being delivered to the premises it serves.

This can occur due to various reasons such as non-payment, maintenance, or the cessation of use. While the meter remains physically in place, it is inactive and does not record any energy consumption until reconnected.

A Distribution Network Operator (DNO) is a company responsible for operating and maintaining the electricity distribution network in a specific geographical area. They ensure the delivery of electricity from the high-voltage transmission network to end users, including homes and businesses.

In the UK, Independent Distribution Network Operators (IDNOs) are similar entities but operate independently of the main DNOs and often manage smaller or newly developed networks. Both DNOs and IDNOs are crucial for maintaining reliable electricity supply and handling network connections.

Distribution Use of Systems (DUoS) charges are fees paid by electricity suppliers and generators to cover the costs of operating and maintaining the distribution network.

These charges are used to fund the infrastructure and services required to transport electricity from the high-voltage transmission network to end users.

DUoS charges are passed on to consumers through their electricity bills and vary depending on factors such as location and consumption levels.

A Distributor ID is a unique identifier assigned to a Distribution Network Operator (DNO) or Independent Distribution Network Operator (IDNO) within the electricity market.

This ID is used to facilitate the accurate management and processing of data related to the distribution network, including network connections, metering, and billing information.

It helps in identifying which distribution network is responsible for a specific geographic area or connection point.

DM (Daily Metered) Gas Supply refers to a type of gas supply arrangement where the gas consumption of a site is measured and reported on a daily basis, rather than monthly or annually. This is typically used for large commercial and industrial sites with significant gas usage.

Daily Metered (DM) sites are required to have advanced metering systems that provide detailed daily consumption data, which is used for accurate billing and to monitor usage patterns.

Domestic Profiles are standardised consumption patterns used in the UK energy market to estimate the electricity or gas usage of residential properties where actual metering data is not available.

These profiles are based on typical consumption patterns for different types of households and are used for billing and settlement purposes.

They help ensure that energy suppliers and network operators can accurately estimate and manage energy usage and costs for domestic consumers.

Estimated Annual Consumption (EAC) refers to the estimated amount of electricity or gas a consumer is expected to use over a year, based on historical usage data or average consumption profiles.

The EAC is used by energy suppliers and other industry participants for billing, forecasting, and managing energy supply and demand.

It helps in setting accurate estimates for accounts where actual consumption data might be missing or incomplete.

The Energy Bill Discount Scheme (EBDS) is a UK government initiative designed to provide financial support to businesses, public sector organisations, and non-domestic energy users by offering discounts on their energy bills.

The scheme was introduced to help organizations cope with rising energy costs and replaced the previous Energy Bill Relief Scheme (EBRS). It operates by providing eligible organisations with a reduction in their energy unit rates, helping to reduce their overall energy expenses.

The Energy Bill Relief Scheme (EBRS) was a UK government initiative aimed at providing temporary financial support to businesses, public sector organisations, and non-domestic energy users facing steep increases in energy costs.

The scheme, which ran from October 2022 to March 2023, capped the wholesale energy prices to ensure that eligible organizations received discounts on their energy bills. It was later replaced by the Energy Bill Discount Scheme (EBDS).

ECOES is an online database and service in the UK that provides information on electricity meters, including details about meter points, suppliers, and service providers.

It is used by energy suppliers, network operators, and other industry participants to access accurate and up-to-date information about electricity metering and connections, which is crucial for effective market operations, customer service, and regulatory compliance.

An Economy-7 Meter is a type of electricity meter that allows consumers to benefit from lower electricity rates during off-peak hours, typically at night.

This tariff is designed to encourage electricity use during times of lower demand, which helps to balance the load on the electricity grid.

The meter records usage in two separate periods: peak hours (when the standard rate applies) and off-peak hours (when the lower rate applies).

An Economy-10 Meter is an electricity meter that supports a tariff offering ten separate off-peak periods throughout the day and night, providing lower rates during these times compared to peak periods.

This tariff is designed to offer consumers greater flexibility and cost savings on electricity used during these off-peak periods, making it suitable for households or businesses with variable energy consumption patterns.

An Evening and Weekend Meter is an electricity meter that supports a tariff offering lower rates for electricity used during evenings and weekends, compared to standard daytime rates.

This type of tariff is designed to benefit consumers who use more electricity during these periods, such as those with evening or weekend-heavy activities.

It provides cost savings by charging less for consumption during the designated lower-rate times.

An Evening, Weekend, and Night Meter is an electricity meter that supports a tariff offering lower rates during evenings, weekends, and night-time hours.

This type of tariff is designed to provide cost savings to consumers who use more electricity during these times, promoting energy use when demand is typically lower and helping to balance the grid.

It is beneficial for households or businesses with significant energy consumption outside of traditional peak hours.

The Feed-in Tariff (FiT) was a UK government scheme designed to encourage the adoption of small-scale renewable energy technologies by providing payments to individuals, businesses, and organizations for the electricity they generate and feed into the national grid.

Under the FiT, participants received a fixed payment for each unit of electricity produced, regardless of whether it was used on-site or exported. The scheme aimed to support renewable energy generation, reduce carbon emissions, and contribute to the UK’s renewable energy targets.

Most small-scale renewable generation technologies qualify for the scheme, including:

1. Solar photovoltaic (PV) panels
2. Wind turbines
3. Hydroelectricity
4. Anaerobic digesters
5. Micro combined heat and power (micro-CHP).

The scheme pay FiT-eligible generators for every kWh of electricity produced and for any electricity exported to the grid, as long as they’re registered with Ofgem through the Microgeneration Certification Scheme (MCS).

All energy suppliers pay towards the FiT fund, based on their share of the energy supply market. Ofgem administers the scheme with key decisions being made by the Department of Business, Energy and Industrial Strategy (BEIS).

The FiT scheme closed to new applicants on March 31, 2019, and has been replaced by the Smart Export Guarantee (SEG) for new projects.

Gas meter sizes refer to the physical dimensions and flow capacities of gas meters, which are used to measure the amount of gas consumed by residential, commercial, and industrial properties.

The size of a gas meter determines its ability to handle different volumes of gas flow.

Commonly, gas meters are classified by their maximum flow rate and pressure rating. Meter sizes are usually specified in terms of the cubic meters per hour (m³/h) they can measure, with different sizes suited to varying levels of gas consumption.

A gigawatt (GW) is a unit of power equal to one billion watts (1,000,000,000 watts). It is used to measure the output of large power plants or the overall electricity consumption of large regions or countries.

One gigawatt is enough to power about 750,000 homes, depending on average energy use.

Gigawatts are commonly used in discussions about national energy capacities, renewable energy installations, and large-scale energy generation projects.

Half-hourly meters are advanced electricity meters that record consumption data at 30-minute intervals. This detailed data collection allows for more accurate monitoring and billing of electricity usage, particularly useful for large commercial and industrial users with significant energy consumption.

The half-hourly data is used for various purposes, including detailed billing, energy management, and regulatory compliance.

The Market-wide half-hourly settlement (MHHS) programme will see all settlements move to half-hourly – a move that will see more than 30million meters needing to be updated by the end of 2026.

An Independent Gas Transporter (IGT) is a company that operates and maintains its own gas distribution networks, separate from the main gas transmission network managed by the national gas transporter (such as National Grid Gas).

IGTs typically manage smaller or newly developed gas networks and are responsible for the delivery of gas to end users within their specific areas. They ensure the safe and efficient operation of the gas infrastructure and may also handle connections and customer service within their networks.

IGTs always have to have 10-digits and will begin with a ‘7’. In 99% of cases, where you have a 10-digit MPR starting with a 7, it will be an IGT.

If the MPRN starts with a 7, you should be aware that gas is piped to the property by an Independent Gas Transporter. This may have an adverse effect on the price paid for gas as some gas suppliers charge a premium rate to customers served by an IGT.

An Independent Distribution Network Operator (IDNO) is a company that owns and operates electricity distribution networks separate from the main Distribution Network Operators (DNOs).

IDNOs manage smaller or newly developed networks, often within residential, commercial, or industrial developments, and deliver electricity from the national grid to end users.

Although they operate independently of DNOs, IDNOs are regulated and must maintain the same standards of safety and reliability for electricity supply.

kVA (kilovolt-amperes) is a unit of measurement used to quantify apparent power in an electrical system. It represents the total power, including both real power (kW) and reactive power (kVAR), required to operate electrical equipment.

While kilowatts (kW) measure real power that does the useful work, kVA measures the overall capacity of electrical systems, including power lost in the form of heat or used to maintain the electromagnetic fields of equipment.

A kilowatt hour (kWh) is a unit of energy representing the consumption of one kilowatt of power over the course of one hour.

It is commonly used to measure electricity usage for residential, commercial, and industrial purposes. For example, if a device with a power rating of 1 kW operates for one hour, it will consume 1 kWh of energy.

The kWh is a standard unit on utility bills and helps determine the cost of electricity consumed.

Market-wide Half-Hourly Settlement (MHHS) is a reform initiative in the UK energy market aimed at moving from the current system of settlement based on estimated or less frequent data to a system where all electricity consumption is settled on the basis of half-hourly metering data.

This change is designed to improve the accuracy of energy billing, enhance market efficiency, and support better demand response and flexibility in the energy system.

MHHS will enable more precise matching of supply and demand and support the integration of renewable energy sources.

The Micro Business Review refers to an initiative by Ofgem, the UK energy regulator, to assess and improve the treatment of microbusinesses in the energy market.

The review focuses on ensuring that microbusinesses, which often face challenges in accessing fair energy deals and navigating complex market processes, receive appropriate protections, transparent pricing, and support for switching suppliers.

Key areas include tackling mis-selling, improving contract transparency, and ensuring businesses are treated fairly by suppliers.

A Meter Operator (MOP) is a company responsible for the installation, maintenance, and management of electricity or gas meters.

MOPs ensure that meters are accurate, properly calibrated, and functioning correctly. They also handle meter readings and provide data for billing and settlement purposes.

In the UK energy market, MOPs play a crucial role in ensuring that metering infrastructure supports accurate and efficient energy measurement and billing.

The Meter Point Administration Number (MPAN) is a unique reference number used in the UK to identify an electricity supply point.

It is also commonly referred to as the “Supply Number” or “Meter Point Reference Number” (MPRN) in some contexts.

The MPAN is used to distinguish between different electricity supply points and is essential for activities such as switching suppliers, billing, and managing electricity supply.

A Meter Reading Profile (MRP) refers to a standardised set of data or a schedule that details how and when meter readings should be collected and recorded.

In the context of electricity and gas metering, the MRP outlines the frequency and timing of readings to ensure accurate billing and data management.

This profile is used to categorise consumption patterns and determine the appropriate metering and billing processes for different types of customers.

The Meter Serial Number (MSN) is a unique identification code assigned to a gas or electricity meter.

It is used to identify the specific meter installed at a property and is typically printed on the physical meter itself.

The MSN helps energy suppliers and meter operators accurately track, maintain, and manage the meter for billing, maintenance, and meter reading purposes.

National Grid was the company responsible for operating and maintaining the high-voltage electricity transmission network and the gas transmission system across Great Britain.

National Grid sold the Electricity System Operator (ESO) to the UK Government and on 1st October 2024, National Energy System Operator (NEOS) – a new independent organisation was launched.

The National Energy System Operator (NEOS) is a UK organisation responsible for overseeing the operation of the electricity system, ensuring that supply meets demand and maintaining the security and reliability of the electricity grid.

NEOS coordinates the generation and distribution of electricity, facilitates the integration of renewable energy sources, and manages the balancing of supply and demand in real-time, playing a critical role in ensuring that the UK’s energy infrastructure operates efficiently, especially during periods of high demand or supply fluctuations.

Reactive power is the component of electricity that does not perform useful work but is necessary to maintain voltage levels across the electricity grid, enabling the efficient transmission of real power (active power).

Reactive power is measured in volt-amperes reactive (VAR) and is used to maintain the electromagnetic fields in devices such as transformers and motors.

Reactive power ensures stability in the power system, but excessive amounts can reduce the efficiency of energy transmission.

The Renewables Obligation (RO) was a UK government scheme designed to promote the generation of electricity from renewable sources.

Under the RO, electricity suppliers were required to obtain a certain number of Renewable Obligation Certificates (ROCs) for the amount of electricity they supplied to their customers. These certificates were issued to renewable energy generators based on their output.

The scheme aimed to increase the share of renewables in the electricity mix, reduce carbon emissions, and encourage investment in renewable energy technologies.

The Renewables Obligation closed to new generating capacity on March 31, 2017, and was replaced by the Contracts for Difference (CfD) scheme for new projects.

Scope 1, 2, and 3 emissions are categories defined by the Greenhouse Gas Protocol to help organisations measure and manage their greenhouse gas emissions.

• Scope 1 Emissions: These are direct emissions from owned or controlled sources. This includes emissions from fuel combustion in company-owned vehicles, on-site fossil fuel combustion, and industrial processes.
• Scope 2 Emissions: These are indirect emissions from the generation of purchased electricity, steam, heating, and cooling consumed by the reporting organisation. Scope 2 emissions occur as a result of the organisation’s energy use but are produced by the energy supplier.
• Scope 3 Emissions: These include all other indirect emissions that occur in a company’s value chain. Scope 3 encompasses emissions from both upstream and downstream activities, such as the production of purchased goods and services, waste disposal, employee travel, and the use of sold products.

Understanding and managing all three scopes of emissions is crucial for organisations aiming to reduce their carbon footprint and improve sustainability.

The Targeted Charging Review (TCR) is a reform led by Ofgem aimed at overhauling how electricity network charges are allocated to consumers and generators in the UK.

The goal of the TCR is to make the charging system fairer and more cost-reflective by ensuring that charges better align with the costs of maintaining the grid infrastructure.

Changes under the TCR affect how Distribution Use of System (DUoS) and Transmission Network Use of System (TNUoS) charges are applied, with an emphasis on reducing distortions and ensuring that consumers pay a fair share of network costs, regardless of how much electricity they generate or use.

A terawatt (TW) is a unit of power equal to one trillion watts (1,000,000,000,000 watts).

It is used to measure extremely large amounts of power, typically in the context of global or national energy generation and consumption.

Terawatts are often used to express the total capacity of large power grids or the energy output of entire countries over extended periods.

TNUoS (Transmission Network Use of System) charges are fees levied on electricity generators and suppliers to cover the costs of operating and maintaining the high-voltage transmission network that transports electricity from generation sites to local distribution networks.

These charges help fund the infrastructure required to ensure a reliable and efficient electricity supply across the UK.

TNUoS charges are based on factors such as the location of the generation or supply, and the amount of electricity transported.

Voltage optimisation is a technology and process used to reduce the voltage supplied to electrical equipment without compromising performance.

By lowering the voltage to optimal levels, businesses can enhance energy efficiency, reduce energy consumption, and decrease electricity costs. This process is particularly effective in commercial and industrial settings, where high electrical loads can lead to excessive energy use and equipment wear.

Voltage optimisation systems can automatically adjust voltage levels based on real-time needs, improving overall energy efficiency and extending the lifespan of electrical equipment.

Volume Tolerance (VT) refers to the allowable range of deviation in the volume of gas or electricity recorded by a meter compared to the actual consumption or expected volume.

It ensures that minor discrepancies in measurements are accounted for, acknowledging that some variation is normal due to factors such as meter accuracy, environmental conditions, or operational adjustments.

VT helps in managing billing accuracy and maintaining fairness in the measurement and settlement processes.