Energy Industry Glossary: Terms Explained
The energy industry can be full of technical jargon and complex terms — but understanding the basics shouldn’t be a barrier. Our Energy Industry Glossary is here to break it all down. Whether you’re comparing energy tariffs, exploring renewable solutions, or just trying to make sense of your bill, this glossary offers clear, simple definitions to help you stay informed.
A
AAHEDC (Assistance for Areas with High Electricity Distribution Costs)
A government scheme that helps reduce electricity distribution costs for customers in certain remote areas of Great Britain.
Account Statement
A summary from a supplier showing an energy account’s bills, payments, credits, and current balance over a set period.
ADR (Alternative Dispute Resolution)
A process to help resolve complaints between a customer and an energy supplier without going to court, often through an ombudsman.
Aggregate Consumption
The total energy used by a group of customers over a period, typically measured in kilowatt-hours (kWh).
AMR Meter (Automated Meter Reading)
A type of meter that automatically sends usage data to suppliers without the need for manual readings.
Annual Statement
A yearly summary provided by energy suppliers showing total consumption, payments made, contract status, and any outstanding balances.
AQ (Annual Quantity)
The estimated yearly gas usage for a site, based on historical data. Used for billing purposes.
APR (Annual Percentage Rate)
While less common in energy contracts, this may appear in payment plans or financing options, representing the yearly interest rate for borrowed funds.
Availability Charge
An availability charge is a fee paid to an energy supplier or network operator to reserve a set level of electricity capacity for a site, regardless of how much energy is actually used.
B
Back-Billing
When a supplier charges for energy used in the past that wasn’t previously billed, often due to missed meter readings or errors. Regulations limit how far back suppliers can charge.
Backboard
A backboard is the mounting board used to securely fix and support an electricity meter and associated equipment at a property.
Balancing Mechanism
A system used by National Grid ESO to ensure electricity supply meets demand in real-time.
Baseload
The minimum level of continuous demand on the electricity supply system.
Bill Validation
The process of checking an energy invoice to ensure charges, rates, consumption, and contract terms have been applied accurately.
Bioenergy
Renewable energy made from organic materials such as plant or animal waste.
Biofuel
A renewable fuel produced from organic materials such as plants, crops, or waste, used as an alternative to fossil fuels for generating energy.
BSUoS (Balancing Services Use of System)
A charge applied to electricity suppliers to recover the cost of balancing the national electricity system in real time, which is ultimately passed on to customers through their bills.
C
Capped Price
An energy tariff that limits how high your unit rate can go during the contract term, though it can still drop if the market falls.
Capacity
Capacity is the maximum amount of electricity demand, measured in kVA or kW, that a site is permitted to draw from the network at any one time.
Capacity Market
A mechanism where energy suppliers are paid to guarantee future electricity supply capacity.
Carbon Credit
A permit that allows a business to emit a certain amount of CO₂. Can be bought or sold in carbon markets.
Carbon Footprint
The total amount of greenhouse gases emitted, directly and indirectly, by an individual, organisation, product, or activity, usually measured in tonnes of CO₂ equivalent.
Carbon Intensity
The amount of carbon dioxide emissions produced per unit of electricity generated, often measured in grams of CO₂ per kWh.
Carbon Offsetting
The process of compensating for carbon emissions by investing in projects that reduce or remove an equivalent amount of greenhouse gases from the atmosphere.
CHP (Combined Heat and Power)
A highly efficient method of generating electricity and useful heat from the same energy source.
Climate Change Levy (CCL)
A government tax on business energy use, intended to encourage energy efficiency and reduce carbon emissions. Exemptions or discounts may apply.
Code of Practice
Standards and procedures that energy suppliers must follow, often in areas like customer service, billing, or dealing with vulnerable customers.
Commission
Commission is a fee paid to a broker or third party for arranging or managing an energy contract on behalf of an organisation.
Commodity Charges
The cost of the actual gas or electricity consumed by a business. This includes the wholesale market price, supplier margin, and any risk premiums added by the supplier. Commodity charges can vary depending on market conditions, time of year, global fuel prices, and demand.
Contract End Date
The date your fixed energy contract ends. Failing to renegotiate can lead to expensive out-of-contract rates.
Contract Start Date
The date on which an energy supply agreement officially begins and the agreed contract rates and terms take effect.
COO (Change of Occupancy)
The process of transferring responsibility for an energy supply from one organisation or tenant to another at a property.
Cooling-Off Period
A set timeframe (usually 14 days) after agreeing to a contract during which a business or individual can cancel without penalty.
COS (Change of Supplier)
The process of transferring an energy supply from one supplier to another.
COT (Change of Tenancy)
The process of updating an energy account when a new tenant moves into a property and takes over responsibility for the supply.
Credit
Credit refers to a positive balance on an energy account, which can either be refunded to the organisation or used to offset future bills, depending on the supplier’s policy.
D
Data Aggregator (DA)
The appointed party responsible for collecting metering data from Data Collectors and providing it to relevant market participants for settlement and billing.
Data Collection (DC)
The service of obtaining meter readings and consumption data (either remotely or manually) and submitting it for billing and industry settlement.
Decarbonisation
The process of reducing carbon emissions from business activities, particularly energy consumption.
Deemed Energy Contract
A mechanism where energy suppliers are paid to guarantee future electricity supply capacity.
Demand
The amount of electricity a site requires at a given time, often considered as the level of power drawn during peak periods.
Demand Side Response (DSR)
When a business reduces or shifts its electricity use during peak periods to help balance the grid and potentially earn incentives.
Distribution Losses
The units of electricity lost as heat and inefficiencies when power travels through local distribution networks, meaning more energy is generated than is ultimately delivered to sites.
DNO (Distribution Network Operator)
The company that owns and maintains the local electricity network (cables, substations and related infrastructure) and is responsible for delivering electricity to properties in its region.
Dual Fuel
When a business or household buys both gas and electricity from the same supplier.
DUoS (Distribution Use of System)
Charges that businesses pay to use the local electricity distribution network. Varies by region and time of use.
E
Economy 7 / Economy 10
Metering systems and tariffs that offer cheaper electricity rates during off-peak hours, typically at night.
EII (Energy Intensive Industries)
Refers to businesses that use exceptionally high levels of energy in their operations and may qualify for government support or exemptions from certain policy costs.
Electric Supply
Describes a registered electricity supply point identified by a unique MPAN (Meter Point Administration Number), which is used to track billing and industry data.
Electronic Data
Refers to meter readings collected automatically via smart or advanced meters, including AMR (Automated Meter Reading) or HH (Half-Hourly) consumption data.
Energy Broker
A third party that helps businesses compare and secure energy contracts, often working with multiple suppliers.
Energy Consumption
The amount of energy used by a business over a given period, measured in kWh or MWh.
Energy Efficiency
Measures or technologies that reduce energy consumption without affecting productivity.
Energy Mix
The combination of energy sources (renewable, nuclear, fossil fuels, etc.) used to meet demand.
Energy Management
The process of monitoring, controlling, and optimising energy production and consumption to reduce costs, improve efficiency, and lower environmental impact.
EMS (Energy Management Systems)
Software and tools that monitor, control, and optimise energy use in buildings, factories, or grids to reduce costs, improve efficiency, and support sustainability.
Energy Tariff
The pricing plan agreed between a business and an energy supplier, which can be fixed, variable, green, or capped.
EPC (Energy Performance Certificate)
A document grading the energy efficiency of a building from A (most efficient) to G (least efficient).
ESOS (Energy Savings Opportunity Scheme)
A mandatory UK energy assessment scheme requiring qualifying large organisations to measure and audit their energy use and identify cost-effective efficiency opportunities.
EVs (Electric Vehicles)
Cars, vans, or other vehicles powered by electricity stored in batteries rather than fossil fuels, reducing emissions and supporting the transition to cleaner transport.
F
Feed-in Tariff (FiT)
A former government scheme that paid businesses for generating their own renewable electricity (now closed to new applicants).
Fixed Energy Tariff
An agreement where the unit rate remains constant for the duration of the contract, offering protection from market fluctuations.
Flexible Energy Tariff
A contract where the unit price can change with the market, potentially offering savings but carrying risk.
Fossil Fuels
Traditional sources of energy such as coal, oil, and gas, which are non-renewable and carbon-intensive.
Fuel Mix Disclosure
The information provided by an energy supplier showing the proportion of electricity generated from different sources, such as renewables, gas, coal, and nuclear.
G
Gas Charges
The costs applied to a gas bill, including unit rates, standing charges, transportation costs, and government levies.
GGCS (Green Gas Certification Scheme)
A UK scheme that certifies biomethane injected into the gas grid, enabling suppliers to evidence renewable gas supply.
GGL (Green Gas Levy)
A government levy applied to gas suppliers to support the production of biomethane.
GHE (Greenhouse Emissions)
The release of greenhouse gases into the atmosphere from activities such as energy use and fuel combustion.
GHG (Greenhouse Gases)
Gases such as carbon dioxide and methane that trap heat in the atmosphere and contribute to climate change.
Green Energy
Electricity or gas sourced from renewable resources such as wind, solar, or hydro.
Green Tariff
A tariff that ensures some or all of the electricity you use is matched with renewable energy or carbon offsetting.
Grid
The national infrastructure of cables, substations, and related equipment that transports electricity from generators to end users.
GSHP (Ground Source Heat Pump)
A heating system that uses heat stored in the ground to provide energy-efficient heating and hot water.
GSP (Grid Supply Point)
The connection point where electricity moves from the national transmission system to regional distribution networks.
GWh (Gigawatt Hour)
A unit of energy equal to one million kilowatt hours, commonly used to measure large-scale consumption or generation.
H
Half-Hourly (HH) Metering
Advanced metering that records electricity consumption every 30 minutes. Mandatory for businesses using large volumes of electricity.
Heat Pumps
Energy-efficient systems that extract heat from the air, ground, or water to provide heating and hot water for buildings, and sometimes cooling.
HH Data (Half-Hourly Data)
Detailed electricity consumption data recorded every 30 minutes for billing and settlement purposes.
High/Low Energy User
Classifications based on consumption. High users may have bespoke tariffs, while low users may be offered simplified or bundled rates.
High Voltage (HV)
Detailed electricity consumption data recorded every 30 minutes for billing and settlement purposes.
Hydroelectric
Hydroelectric refers to electricity generated from flowing water.
Hydrogen
A low-carbon energy carrier that can be used as an alternative fuel source.
I
IO (Integrated Operations)
A collaborative approach in the energy sector that combines people, processes, and digital technologies to improve decision-making, efficiency, and safety in operations.
IoT (Internet of Things)
A network of connected devices, sensors, and systems that communicate and share data over the internet. In the energy sector, IoT is used for smart meters, predictive maintenance, and real-time energy monitoring to improve efficiency and reduce costs.
ISO 50001
An international standard for energy management systems designed to help organisations improve energy performance.
K
KPI (Key Performance Indicator)
A measurable value used to track progress against energy strategy objectives.
kWh (Kilowatt-hour)
The standard unit of energy used to measure electricity consumption. One kWh equals 1,000 watts used for one hour.
L
Late Payment Fee
A charge applied when an energy invoice is not paid within the agreed payment terms.
LDZ (Local Distribution Zone)
A geographic area of the gas distribution network used for pricing and balancing purposes.
Leak
The unintended escape of gas from pipework or equipment, posing safety and efficiency risks.
Letter of Authority (LOA)
A document allowing an energy broker or consultant to act on behalf of a business when obtaining quotes or accessing meter data.
Lighting Controls
Systems that automatically manage lighting levels using timers, sensors, or dimming technology to reduce energy use.
Load Band Shifting
Describes moving energy consumption from peak periods to off-peak times to reduce costs.
Load Factor
A measure of how consistently a business uses energy over time, calculated by comparing average load to peak load.
Load Profile
A pattern showing how a site’s energy consumption varies over time.
Load Shedding
Reducing or stopping electricity usage during peak periods to avoid overloading the grid or reduce costs.
Loss (Energy Loss)
Refers to energy that is generated but not delivered to the end user due to network inefficiencies or leakage.
Low Voltage (LV)
Describes smaller electricity supplies typically used by standard commercial premises.
M
Market
Refers to the competitive energy industry environment in which suppliers buy and sell electricity and gas, and organisations choose contracts and pricing structures.
Meter Reading
The process of recording your meter’s current energy usage data, either manually or automatically, to ensure accurate billing.
Meter Top Line
The key supply information displayed at the top of an energy bill, including identifiers such as the MPAN or MPRN.
MHHS
A UK energy market reform that uses smart meter data to settle electricity consumption every half hour, making the grid more efficient and enabling better demand management.
Microbusiness
A business that uses less than 100,000 kWh of electricity or 293,000 kWh of gas per year, or has fewer than 10 employees and an annual turnover below €2 million.
MOP (Meter Operator)
Responsible for installing and maintaining half-hourly electricity meters. Businesses with HH metering must appoint a MOP.
MOP Agreement
The contract between an organisation and a Meter Operator (MOP) covering the installation, maintenance, and compliance of a half-hourly electricity meter.
MOP Charges
The fees paid for Meter Operator services, including meter installation, maintenance, data retrieval, and ongoing support.
MPAN (Meter Point Administration Number)
A unique 13-digit number used to identify your electricity supply point. Often referred to as a “supply number”.
MPRN (Meter Point Reference Number)
A unique number for your gas supply point, used by suppliers to identify and bill the correct site.
MTC (Meter Timeswitch Code)
A three-digit code that indicates the type of electricity meter and the tariff structure applied, such as single-rate or multi-rate supply.
MWh (Megawatt-hour)
Equal to 1,000 kilowatt-hours. A common unit of measurement for large energy users.
N
Net Zero
A state where your business’s greenhouse gas emissions are balanced by carbon removal or offsetting, often a key sustainability target.
NCC (Network Charging Compensation Scheme)
A government scheme that provides eligible energy-intensive industries with compensation for certain electricity network charges to help reduce operating costs.
Non-Commodity Charges
All additional costs associated with delivering, managing, and regulating energy supply. These charges are typically passed through by suppliers and can make up a large portion of a business energy bill.
Non-Half-Hourly (NHH) Metering
Traditional electricity metering method where consumption is estimated or read periodically, rather than recorded every 30 minutes.
NTS (National Transmission System)
The high-pressure gas network that transports gas across Great Britain from terminals and storage facilities to regional distribution networks.
O
Ofgem
The UK’s energy regulator, responsible for protecting customers and ensuring fair competition in the energy market.
Off-Peak
Describes periods of lower energy demand when electricity or gas is typically charged at a reduced rate.
Oil
A fossil fuel used for heating and power generation, typically delivered and stored on site rather than supplied through a network.
Ombudsman (Energy)
An independent body that resolves disputes between energy suppliers and organisations when a complaint cannot be settled directly.
Optimisation
Refers to adjusting energy usage, contracts, or systems to improve efficiency and reduce unnecessary costs.
P
Pass-Through Charges
Elements of an energy bill (like DUoS, TNUoS, CCL) that may be itemised separately and “passed through” to the customer typically at cost.
Peak Demand
The highest level of electricity usage recorded at a site during a specific period.
Policy
Refers to government or regulatory measures that influence energy pricing, environmental obligations, or market rules.
Power (Electricity)
The rate at which electrical energy is used or generated, measured in kilowatts (kW).
Powershoring
The relocation of energy-intensive industries to regions with abundant, clean, and reliable energy sources, often to reduce carbon impact and supply chain risk.
Power Curve
A graph showing how electricity usage or generation varies over time or at different output levels.
Power Cut
An interruption to the electricity supply, resulting in a temporary loss of power at a property.
PPA (Power Purchase Agreement)
A contract between an electricity buyer and a generator, often used in corporate renewable energy deals.
R
RECs (Renewable Energy Certificates)
Tradable certificates that confirm a specific amount of electricity has been generated from renewable sources.
REGO (Renewable Energy Guarantees of Origin)
Certificates that show electricity has been generated from renewable sources, helping businesses and consumers verify green energy claims.
RGGOs (Renewable Gas Guarantees of Origin)
Certificates that verify a unit of gas has been produced from renewable sources, such as biomethane.
Regulator
Refers to the governing body, such as Ofgem in Great Britain, that oversees the energy market and enforces industry rules.
Renewable Energy
Energy generated from naturally replenishing sources such as solar, wind, hydro, and biomass, offering a sustainable alternative to fossil fuels.
Retail Price
The rate charged to end users for energy supply, including wholesale costs, network charges, and policy levies.
RTS (Radio Teleswitch Service)
A legacy UK system that used longwave radio signals to control off-peak electricity tariffs and appliances; it is being phased out as smart meters replace it.
S
SECR (Streamlined Energy and Carbon Reporting)
A UK regulatory framework requiring qualifying organisations to report on their energy use and carbon emissions within their annual accounts.
SED (Supply End Date)
The date on which an energy supply contract is scheduled to end.
Smart Meter
A digital device that records energy usage in near real-time and can send data automatically to suppliers.
SME (Small and Medium-sized Enterprise)
A business that falls within defined size thresholds based on employee numbers and turnover.
Signatory
The authorised individual who signs and agrees to the terms of an energy contract on behalf of an organisation.
Solar Panels
Devices that convert sunlight directly into electricity using photovoltaic (PV) cells, commonly used in homes, businesses, and large-scale renewable energy projects.
SSD (Supply Start Date)
The date on which an energy supply contract begins and agreed rates take effect.
Standing Charge
A fixed daily fee covering the cost of keeping your business connected to the energy network.
Sub-Metering
The installation of additional meters within a site to monitor energy usage in specific areas, departments, or equipment.
Supply Capacity
The maximum amount of electricity a business site can draw from the grid. Charges may apply if usage exceeds agreed capacity.
Sustainability
Refers to meeting current energy needs in a way that minimises environmental impact and preserves resources for the future.
Switching
The act of transferring an energy supply from one supplier to another.
T
Tariff
The pricing structure of an energy contract, including unit rates, standing charges, and any additional fees.
TCR (Targeted Charging Review)
A reform by Ofgem that changes how electricity network costs are charged, moving from usage-based to fixed fees to ensure fairer billing.
TNUoS (Transmission Network Use of System)
A charge to cover the cost of maintaining the high-voltage electricity transmission network.
Transmission
The process of transporting electricity from power stations to local distribution networks over long distances.
Transmission Losses
The energy lost as heat and inefficiencies when electricity is transported across the high-voltage transmission network.
Transportation Charges
The costs applied for using the gas or electricity networks to deliver energy from source to site.
Triads
The three half-hour periods of highest national electricity demand during winter. Businesses with HH meters can be charged more during these periods if they are on certain tariffs.
U
Unit Rate
The cost per unit of energy (e.g., per kWh) used. This is the variable part of your bill, multiplied by your consumption.
Uplift
An additional cost applied to an energy unit rate or contract price, typically to cover supplier risk, third-party fees, or market adjustments.
Utility
A general term for service providers that deliver essentials like gas, electricity, and water.
V
VAT (Value Added Tax)
A government tax applied to energy bills at the applicable rate.
Verification
The security process carried out by a supplier, often over the phone, to confirm authority before discussing or granting access to an energy account.
Volatility
Describes fluctuations in energy prices over time, often driven by supply, demand, geopolitical events, or market conditions.
Voltage
The electrical pressure that pushes electricity through a network, determining how power is delivered to a site.
W
Waste Energy
Energy produced as a by-product of industrial processes or waste treatment that can be captured and reused for power or heating.
Watt (W)
The basic unit of electrical power, measuring the rate at which energy is used or generated.
Wind Turbine
A device that converts wind energy into electricity through rotating blades connected to a generator, used in both onshore and offshore wind farms.
Wholesale Market
The marketplace where energy suppliers purchase electricity and gas in bulk from generators before selling it to end users.
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