Understanding business energy shouldn’t be complicated. This glossary breaks down every key term you’ll find on energy bills, supplier contracts, and the wider UK energy market.
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You pay non-commodity charges “at cost”.
The broker’s fee, built in or billed.
The period to renew before expiry.
How much notice you must give to exit.
A contract that “rolls on” after expiry.
Extra protections for very small firms.
A contract that keeps renewing.
Rates when you’re supplied without a deal.
Default rates after your deal ends.
Rates can change any time.
Prices move with an index.
Market-linked buying in stages.
Fixed p/kWh for a term.
Policy charges added to bills.
Non-supplier bill components.
The cost suppliers pay for energy.
Charges billed at cost.
The “pipes and wires” costs.
Legacy renewables scheme cost.
National grid network cost.
Local network charge.
Cost of balancing the grid.
A low-carbon support mechanism.
A legacy renewables scheme cost.
Business energy tax per kWh.
A security-of-supply charge.
The non-energy part of your bill.
Price per kWh you use.
Daily fixed fee for an active energy supply.
A documented plan to cut a business's energy use across sites and time.
Cutting greenhouse gas emissions to as close to zero as possible and balancing the rest.
An electric system that moves heat for heating (and cooling) far more efficiently than fossil fuel boilers.
Renewable Energy Guarantees of Origin — certificates proving renewable output.
An energy tariff marketed as backed by renewable generation.
Earning revenue by reducing or shifting demand when the grid needs help.
Moving flexible energy use away from peak hours to cut cost and carbon.
A structured review of how a business uses energy and where it can save.
Energy Performance Certificate — required when most buildings are sold or let.
A grade (A–G) showing how energy-efficient a building or product is.
Total greenhouse gas emissions associated with a business's activity.
The maximum amount of electricity a generator (or fleet) can produce.
The blend of generation sources (gas, wind, nuclear, etc.) supplying electricity.
Matching electricity supply to demand in real time to keep the grid stable.
The Electricity System Operator that balances supply and demand on GB's grid.
A subsea/overland cable linking GB's grid to another country's grid.
Where energy is bought and sold for delivery weeks, months or years ahead.
The price of energy for immediate or very short-term delivery.
The market that sets electricity prices for delivery on the next day.
Electricity demand and supply during the higher-demand hours of the day.
Steady, round-the-clock electricity demand (and the generation that meets it).
Locking in energy prices in advance to reduce exposure to wholesale swings.
The market where suppliers buy electricity and gas in bulk before selling on.
Your peak power draw.
A typical usage “shape”.
How your usage is modelled.
A real meter read.
A supplier’s best guess.
They install and maintain meters.
They total your meter data.
They collect your meter data.
Usage recorded every 30 minutes.
Second-generation smart meter.
First-generation smart meter.
Automatic meter readings.
Your gas supply number.
Your electricity supply number.
Updating the supplier when a new business takes over an energy supply.
Independent service that resolves disputes between customers and suppliers.
A defect that makes a meter record usage incorrectly (or not at all).
A formal dispute raised when a bill is believed to be wrong.
Requesting money back from a supplier (e.g. for overpayment or incorrect billing).
How often your supplier issues bills (e.g. monthly, quarterly).
A short window after signing where you can cancel without penalty.
Rules limiting how far back a supplier can charge you for missed energy use.
When your current supplier blocks a switch (usually for debt or contract end-date).
The process of moving your gas or electricity supply to a new supplier.
Ofgem's programme that cut energy switching time to 5 working days.
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