Glossary of Terms >Electricity

AMR

Automated Meter Reading - automatic collection of data from meters which is transferred to a central database for billing and/or analysis.

Availability

See Capacity

Balancing Mechanism

The mechanism by which electricity demand is matched with electricity generation as near to real time as possible. It currently operates from three and a half hours ahead of delivery of the power up to the actual time of delivery.

Baseload Demand

Minimum demand experienced by a generating plant.

Capacitance

The property of a capacitor that determines the quantity of electric energy that it can store.

Capacitor

A device consisting of two conducting surfaces separated by an insulator and having the ability of storing electric energy. Also called a condenser. Capacitors can be installed to control and improve the power factor.

Capacity

Supply Capacity (or Availability) is a limit on monthly maximum demand agreed between the user and the regional distributor (normally via the supplier). Measured in kVA.

Climate Change Levy

A customs and excise levy charged to most commercial users of electricity since 2001. The levy is applied at a fixed rate per kilowatt hour.

Combined Heat and Power (CHP)

A power generation plant which produces electricity and uses the waste heat generated to warm a building or buildings. This may be small scale inside a factory or large scale where heat from a power station is used to provide heating for a local district containing domestic, commercial and industrial premises.

Correction Factor

Used by suppliers to calculate gas bills. The correction factor and the calorific value are the two variables used in the process of converting gas volume (as measured by the meter in cubic feet or cubic metres) into a measure of energy in kilowatt hours (kWh). Charges are based on kilowatt hours.

Cubic Feet

Unit of measure for volume of gas recorded by imperial meters.

Cubic Metres

Unit of measure for volume of gas recorded by metric meters. One cubic metre = 35.31 cubic feet.

Domestic Site

A site with an annual gas consumption of less than 73,200 kilowatt hours or 2,500 therms.

Demand-side Response

When large gas users turn down their gas usage in response to prices. See also interruptible supply.

De Minimis

If the amount of gas supplied to a commercial site is less than 145 kWh per day over a billing period then de minimis applies and VAT is charged at the reduced rate (currently 5%).

Firm Supply

A firm supply of gas is one that is guaranteed for a fixed period and will not be subject to an interruption or closure.

Industrial & Commercial (I&C) site

A site with an annual gas consumption of more than 73,200 kilowatt hours or 2,500 therms.

Interruptible Supply

An interruptible supply is one whereby an agreement has been reached with the user that the service may be interrupted throughout the year, for a pre-determined number of occasions and durations. This form of contract is cheaper and enables the supplier to be more flexible.

Kilowatt Hours

A measure of heat energy from gas. Gas suppliers now bill gas in kilowatt hours (kWh), as opposed to therms, so that a comparison can be drawn between gas services and electricity services. To calculate equivalent value in therms, divide by 29.3071.

MPR

Meter Point Reference. Each gas supply point is allocated a unique meter point reference or MPR number and these are held on a national database.

Network Code

A document that lays out the rights and responsibilities of all those using a Public Gas Transporter (PGT) network. The Network Code is normally used to refer specifically to the PGT network.

Nominated Consumption

The expected consumption of gas over a twelve month period used in a supply agreement.

NTS (National Transmission System)

The pipeline network and supporting facilities that are used to transport gas around the UK.

Objection

A notice issued to a shipper who received an involuntary withdrawal indicating that they wish to retain responsibility for the supply point.

Offtake

Gas consumed by a site or customer.

Ofgem

The Office of Gas and Electricity Markets. The industry regulator.

PGT - Public Gas Transporter

A pipeline network operator, the largest of which used to be Transco, but is now National Grid. Until recently National Grid Transco (now National Grid) owned and operated almost all of the UKs pipelines, now there are four players in the industry.

  1. National Grid Gas plc
  2. Northern Gas Networks Limited
  3. Wales and West Utilities Limited
  4. Scotia Gas Networks

According to OFGEM, this will 'allow gas customers, for the first time, to benefit from efficiency gains of the kind that successive price controls have secured for electricity distribution customers.'
Source: www.scotiagasnetworks.co.uk

Smart meters

Any meter which allows for the identification of consumption in more detail than a conventional meter. Smart meters will generally also include a means of communicating information to a central data collection site for energy management and/or billing purposes.

Supply Point

A group of one or more meters for which the PGT shall make natural gas available for offset by the Shipper.

Therms

A therm is an imperial measure of heat energy equivalent to 29.3071 kilowatt hours. Therms have been largely replaced by kilowatt hours as the standard unit of measure on gas bills and supply agreements.

Transportation Agreement

The agreement between an independent supplier of gas and the relevant PGT, for the movement of gas within the gas network.

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