Energy Terminology
Like many other areas, the energy business uses terminology, abbreviations, acronyms and product names that may seem obscure and often confusing. That's why we thought it would be helpful to provide you with this list of terms, which we hope you'll find useful when communicating with your energy company or trying to decipher a bill.
| Term | Explanation |
| AQ | Annual Quantity. Usually used in connection with Transco's database of readings from which past annual gas consumption may be determined. AQ readings are often used when an energy supplier is assessing the quantity of energy that a new business customer is likely to use. |
| CCL | CCL or Climate Change Levy is a fixed charge on the industrial and commercial supply of lighting, heating and power by consumers who are broadly speaking non-residential. In other words businesses pick up the tab. |
| Deemed Contract | A reference to the state of supply where no contract has been arranged in time to replace the previous one, and therefore your energy is by default deemed to be provided by your existing supplier. Be aware, that deemed rates are normally more expensive than if you had negotiated a new contract in a timely fashion. |
| De Minimis | Defined by the HMRC as the level of energy consumption when reached, means that normal rate VAT becomes payable instead of reduced rate VAT. See the HMRC website for the latest levels for each type of energy source - gas, electricity, oil, etc. |
| DNO | The Distribution Network Operator (DNO) is responsible for the electricity infrastructure for a given geographical area and charges each supplier individually for carrying electricity to their customers. The DNO regions are the same geographic areas as the old nationalised electricity boards. There are currently 14 DNOs. |
| Erroneous Transfer | A term used by the energy industry to suggest that you may now being supplied with electricity or gas by a company with which you have no contract, as the change probably took place without your authorisation. |
| Kwh | The commonly used measure of the amount of energy used. 1 kWh is consumed when you have an appliance constantly using 1kW over a period of 1 hour - or it could be a 6kW appliance used for 10 minutes. |
| Micro-Business | Micro Business describes a business that due to the size of its operation, consumes energy at a level that is similar to that of a residential user, and will enjoy some benefits in terms of contract terms and regulation |
| MPAN |
Meter Point Administration Number. Also known a 'M Number' or 'Supply Number', this is a unique reference for your electricity supply and will be shown on your bill. |
| MPRN |
Meter Point Reference Number. Also known a 'M Number' or 'Supply Number', this is a unique reference for your gas supply and will be shown on your bill. The MPRN will normally be between 6 and 10 numbers in length. *Please note that your meter will also have a seperate serial number. If ever your meter is changed, the serial number will change with it. However your MPRN number should always remain the same. |
| PF (Power Factor) | PF or Power Factor is the measure of how much power may be derived from the electricity supply at any point in time. Certain types of equipment cause poor power factors, and consequently means that less power may be available. |
| Reconciliation Statement | A statement issued by an energy supplier that will usually show that any previous fixed direct debit payments have been insufficient to to cover the amount of gas and electricity used in that period. The statement will normally suggest what the modified direct debit should be going forward, to avoid the possibility of a large outstanding bill at the end of the contract period. As a consumer, you may wish to check the figures are a true reflection of both past and assumed future usage. |
| Relevant Date | Normally used in any offers or contracts from your supplier, and refers to the date on which a Termination Notice needs to be received to avoid being caught in the Rollover Trap. If you meet the criteria of a micro-business, you can now send a Termination Notice at any time before the Relevant Date. If you are not a micro-business you will need to check to see how soon you can send a Termination Notice.
You will need to read your contract to ensure you understand exactly how this will affect your own particular circumstances. |
| Rollover Trap | Rollover Trap is part of the energy industry vernacular. The term refers to the circumstances where a customer misses the window in which they must give notice if they intend to end the contract and look for a new deal.
The result is that the customer is likely to be penalised by the energy company who may not only move them to a less competitive contract, but also legitimately lock them in for a further period. |
| Termination Date | Normally used in any offers or contracts from your supplier, and refers to the date on which the contract to supply will cease and will need to be replaced by a new contract.
You will need to read your contract to ensure you understand exactly how this will affect your own particular circumstances. |
| Termination Notice | A letter or email from your business to advise your current supplier that you wish to the contract to end on the Termination date shown, and that you will be arranging to put a new contract in place. See example termination notice.
Do make sure though that you put a new contract in place in a timely fashion otherwise you may still find yourself being put onto 'out-of-contract by your current supplier. |
| Transco | Transco is the organisation that provides the physical infrastructure for supplying gas in the UK |
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