Active Power

Also known as ‘Real Power’ or simply ‘Power’. Active power is the rate of producing, transferring or using electrical energy. Measured in watts and often-expressed in kW (kilowatt) or MW (megawatt).

Amp
An Amp is a unit that measures the rate of flow of an electrical current.

Apparent Power
The product of the voltage (volts) and the current (amps). Comprises both active and reactive power. Measured in kVa (kilo-volt amperes) or Mva (mega-volt amperes).

AQ- Annual Quantity
The expected number of kWh (kilowatt hours) of gas expected to be consumed annually at a site.

Availability Charge
The charge for the amount of power made available to the clients premises. It is related to the agreed supply capacity. The distribution company sets the rate and it is expressed in kVA.

Available Supply Capacity (ASC)
The agreed maximum supply capacity, measured in kVa, which a customer is allowed to take from the distribution system through their connection point. Customers pay a monthly charge for each unit of capacity. The maximum demand should not exceed the ASC.

Base Load
The minimum amount of electricity being used during non-operational hours.

Bearish
Believing that market prices are about to fall.

BETTA
The British Electricity Transmission and Trading Arrangement introduced in 2005 covering England, Wales and Scotland, replacing NETA which did not cover Scotland.

Bilateral Energy Trading
Trading whereby two parties (for example a generator and a supplier) enter into a contract to deliver electricity at an agreed time in the future.

BIS
(Department for Business, Innovation and Skills). replaced the former DTI

Bullish
Believing that market prices are about to rise.

Calorific Value
The ratio of energy to volume measured in mega joules per cubic meter (MJ/m).

Carbon Emissions Trading Scheme
A scheme in which greenhouse gas emissions are controlled by setting a cap on total transmissions and allowing the market sectors to reach an economically balanced response via trading of emissions allowances. Allowances are allocated initially, perhaps through a free distribution or through an auction, and the total allocation is adjusted periodically.

Cash Out
Company pays a penalty to another company for being out of Balance on the National Grid network.

CCL Discount
The benefits of the Climate Change Levy Discount Scheme result in up to 80% discount on the CCL in return for meeting energy or carbon saving targets.

CCL Relief
A reduction of the CCL agreed as part of a trade sector Climate Change Agreement.

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)
A charge introduced by the Government on 1 April 2001 on UK non-domestic fuel. The Government’s aim when introducing the levy was to encourage business to use less energy, and contribute to the reduction of Carbon Dioxide emissions.

Combined Heat & Power (CHP)
CHP is very efficient technology for generating electricity and heat together. A CHP plant is an installation where there is simultaneous generation of usable heat (normally for space heating) and power (usually electricity) in a single process. CHP typically achieves a 35-40% reduction in primary energy usage compared with power stations and heat only boilers.

Communication Charge
The monthly fee payable by a customer, which covers the collection of half hourly data by the meter operator. This can be billed direct by the MOP (the Meter Operator) or passed on through the current supplier.

Connection Agreement
Agreement between client and the local distribution company (for example Central Networks in the Midlands) setting out the terms and conditions with which each are bound concerning the provision and use of the connection.

Consumer Direct
Consumer body for domestic gas and electricity users ( http://www.consumerdirect.gov.uk/ )

Contract Price Structures
This indicates a supply offer, which has all delivery charges (DuoS & TuoS) built into the unit rates for the supply of electricity.

DM- Daily Metered
A gas site that has its consumption measured daily

Data Aggregator
The organisation appointed to aggregate the meter-reading data received from the appointed Data Collectors and forward it to suppliers.

Data Collector
The organisation responsible for collecting, processing and validating the meter reading data, who then passes the information to the Data Aggregator.

Deemed Rates
Out of contract rates levied by a supplier when a new contract is not signed

De-energisation
The interruption of supply, so that electricity cannot flow from the network to the premises.

DEFRA
Department for Environment, Food and Rural Affairs.

Distribution System
The local wires, transformers, substations and other equipment used to distribute and deliver energy to consumers.

DTI
Department of Trade and Industry, (now defunct) see BIS (Department for Business, Innovation and Skills).

DUoS (Distribution Use of System)
The charges incurred for distributing electricity across the local area system to the supplied premises.

ECOES – Electricity Central Online Enquiry Service
A central database accessible by consumers to check data held about their sites.

EFA – Electricity Forward Agreement
An amount of electricity traded for a period of time.

Economy Seven
An electricity tariff with 2 rates. One for day and one for night

Energywatch
A non-governmental body set up to safeguard the interests of energy users, (now defunct) see Consumer Direct.

European Emissions Trading Scheme
The EU ETS is one of the policies being introduced across Europe to tackle emissions of carbon dioxide (plus other greenhouse gases) and combat the serious threat of climate change. The scheme will commence on 1 January 2005. The phase runs from 2005-2007 and the second phase will run from 2008-2012 to coincide with the first Kyoto Commitment Period. Further 5-year periods are expected subsequently.

Excess Availability Charges
A penalty charge being applied by certain suppliers to clients who are drawing kVa above their Available Supply Capacity (ASC). This can be three times the contracted pence per kVa rate.

Exit Point
A point of connection at which a supply of electricity may flow between the local Distribution system, the client’s installation, supplier’s installation or the Distribution system of another person.

Extra High Voltage
22,000 volts or higher voltage

Firm Gas
Gas supplied to a customer on a guaranteed basis, without interruption.

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

Flexible Contracts
Contracts that are made for a period of time. The price is set at different times during the life of the contract

Forwards Contract
An agreement to buy electricity from another party at a specified time in the future, at a specified price with money changing hands on the delivery date.

Fossil Fuel
An energy source formed in the Earths crust from decayed organic material. The common fossil fuels are oil, coal, and natural gas.

Fossil Fuel Levy
A tax levied on business on energy generated using Fossil Fuel

Futures Contract
Similar to a forwards contract these are normally traded through an Exchange on standard contract terms with profits or losses calculated and paid daily.

GEMA Gas and Electricity Markets Authority
The Board of prominent people managing Ofgem

Gas Substation
A pressure reduction station located on the customers’ premises where gas is reduced from mains pressure to a medium or low pressure for domestic or industrial use.

Generation
This covers the production of electricity at power stations. At present the main fuels used are gas, nuclear and coal, although there is now a growing use of renewable forms of energy, such as wind power, the burning of gas from landfill sites and waste incineration.

Gigawatt (GW)
A unit of power equal to 1 billion watts; 1 million kilowatts, or 1,000 megawatts.

Gigawatt-hour (GWh)
A unit of energy equal to 1 million kilowatt-hours. 1 GWh is equivalent to the total electricity typically used by 250 homes in one year.

Half-Hour Data (HHD)
This is the product of the half-hour data meter. The data is used for invoicing, tendering and reporting purposes.

HV
High Voltage (Normally 11,000 Volts).

IGT- Independent Gas Transporter
A Company that owns the pipework in a small private area ie a housing estate.

Imbalance
A situation where there is a difference between the amount of power produced and the amount of electricity contracted or sold.

Interconnector
A connection or link between power systems that enables them to draw on each others` reserve capacity in time of need.

Interruptible Gas
Gas supplied to a customer whose site has an alternate fuel source, on the basis that the supply might be interrupted for a specified period.

Kilovolt Amperes (KVA)
Also known as Total Power. The resultant effect of the active (kW) and reactive (kVAr) power is the total power measured in kVa. Kva = kW/power factor.

Kilowatt (kW)
A standard unit of electrical power equal to 1,000 watts, or to energy consumption at a rate of 1,000 joules per second.

Kilowatt-hour (kWh)
A unit of energy consumption. A typical home uses around 3,300 kWh of electricity per annum.

Kyoto Agreement
An international agreement signed by countries to limit or reduce their global emissions.

Liquified Natural Gas (LNG)
When natural gas is cooled to a temperature of approximately -160 degrees at atmospheric pressure, it condenses to a liquid called Liquefied Natural Gas (LNG). Natural gas is composed primarily of methane (typically at least 90%), but may also contain ethane, propane and heavier hydrocarbons.

LLF – Line Loss Factor
A number used in the electricity industry In the supply number which denotes the loss of electricity at a supply point

Load
The amount of electric power delivered or required at any specific point or points on an electrical system. The requirement originates at the energy consuming equipment of the customer.

Load Factor
Measures the relationship between unit consumption and maximum demand and is the percentage capacity utilisation figure of a site`s power consumption. To calculate load factor take the total number of units of consumption, divide by the maximum demand, divide by the number of hours in the period, and multiply by 100.

LDZ – Local Distribution Zone
One of 12 areas of the country where a distribution company supplies and maintains the Low Voltage wiring

LV
Low Voltage, normally at 240 or 415 Volts.

MAM-Meter Asset Maintainer
An organisation that maintains a meter

MAP-Meter Asset Provider
An organisation that supplies Meters

Maximum Demand
The highest average demand (in kW or kVA) occurring in a half hour period.

Megawatt (MW)
The equivalent to one thousand kilowatts (kW).

Meter Operator (MOP or MO)
The organisation appointed to install and maintain metering equipment.

Meter Point Reference Number
A unique reference number identifying each meter and used in the preparation of supply tenders.

MPAN Core
A 13-digit number (the bottom line of the Supply Number) made up of the: Distributor Identifier (first two digits), the company which provides the distribution network for the supply address, and a Meter Point unique reference (11-digit number) which is linked to the supply address.

MPRS
The Meter Point Registration System is owned by the Distribution companies. It contains all the MPAN’s for that distribution area.

MTS- Meter Time Switch
A timing device built into meters that register more than one rate i.e. Day units and Night units.

NBP-National Balancing Point
The amount of gas required within National Grid`s pipeline for safe operation.

NTS – National Transmission System
The network of gas pipelines owned by National Grid.

NDM – Non Daily Metered
A gas site that has a meter which is read monthly or quarterly

NETA – New Electricity Trading Arrangements
This came into force on the 27th March 2001 and replaced the old ‘electricity pool’. NETA is a new wholesale market, comprising trading between generators and suppliers of electricity in England and Wales. Under NETA, bulk electricity will be traded forward through bi-lateral contracts and on one or more power exchanges. Those trading will include generators, suppliers, traders and customers. (defunct since 4 April 2005) see BETTA .

NGC
National Grid Company, the company which runs the England and Wales Balancing Mechanism and Transmission system.

NHH
Non Half hourly sites – sites that take a power supply less than 100kW.

OFGEM
Office of Gas and Electricity Markets.

PC
Profile Class in the electricity industry and used in the Supply Number to identify the meter type.

Peak Demand
The maximum load during a specified period of time.

PES
(Public Electricity Supply) geographical electricity supply areas.

Power Factor
A Power Factor is a measure of how effectively electricity is being used on a site. Certain types of equipment cause poor power factors, which reduces the capacity of the network to supply power. Distribution companies will charge customers for this through reactive power charges.

Reactive Charges
Charges applied to a client’s invoice in cases where certain Suppliers and Distribution companies enforce a penalty for reactive power use.

Regulator
OFGEM (the Office of the Gas and Electricity Markets) regulates the natural gas and electricity industry in Britain. You can get further information about gas and electricity from Energywatch, the gas and electricity consumer organisation. This is a statutory body representing the interests of gas and electricity consumers in Britain.

Renewable Energy
Energy derived from resources that are regenerative. This includes solar power, wind, wave,  tidal flow and hydroelectricity. Wood, straw and waste are often called solid renewable energy, while landfill gas and sewerage gas can be described as gaseous renewable.

Renewable Obligation
The obligation placed on licensed electricity suppliers to deliver a specified amount of their electricity from Renewable sources.

SOQ
Supply Offtake (Daily) Quantity measures in kWh.

Spark Spread
The difference between market price and the cost of production.

Standing Charge
A monthly or quarterly charge levied by the local Distribution company.

Substation
Facility equipment that switches, changes, or regulates electric voltage. An electric power station which serves as a control and transfer of power flow, transform voltage levels, and serve as delivery points to industrial customers.

Supply Agreement
A contract between a supplier and the customer to supply electricity at an agreed tariff for an agreed duration. Supply contracts are of 12, 18 or 24-month duration but longer and shorter ones are possible.

System Buy Price (SBP)
The price paid in the Balancing Mechanism by a party that requires more energy to meet its contractual commitments. Prices are often volatile and very high.

System Sell Price (SSP)
The price paid in the Balancing Mechanism by a party that has produced more electricity than it had customers to buy. Prices are very volatile and often negative, meaning that a payment would need to be made to dispose of the unwanted electricity produced.

Terawatt-hour (TWh)
The equivalent to one thousand gigawatt hours (GWh).

The Carbon Trust
The Carbon Trust is an independent, not-for-profit company, which was created by the  Government. The Carbon Trust helps business and the public sector cut carbon emissions, and supports the development of low carbon technologies.

Therm
This is a unit of measurement for gas. 1 therm is equal to 29.3071kWh.

Transco
Now known as National Grid. Looked after the high pressure gas pipeline and controlled gas leaks.

Transmission
The transfer of electricity at high voltage from the power stations across Britain through wires on pylons to points where it can be distributed to users. This is known as the Grid System and is owned and operated by National Grid.

TRIAD
Used for the calculation of 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 System)
The charges incurred for transmitting electricity across the National Grid network from the source of generation to the network of the local Distribution company. The level of these charges is usually calculated by applying a rate charge to the TRIAD demand level.

Volt
The volt is defined as the potential difference across a conductor when a current of one ampere dissipates one watt of power.

Voltage
The difference of electrical potential between two points of an electrical network, expressed in volts. It is a measure of the capacity of an electric field to cause an electric current in an electrical conductor.

Watt
The watt is the International System unit of power, equal to one joule per second.