Business energy jargon explained
There is a tendency for business gas and business electricity suppliers to
use that mean very little without explanation. One of our goals at
Make It Cheaper is to demystify business energy terminology so that
owners can make and informed and considered choice about reducing
their bills and switching to improved rates. Here's our guide to
some commercial energy abbreviations:
Agreed Read Dispute
An industry-wide process to resolve problems arising when
closing and opening meter readings do not correspond during a
switch or change of tenancy.
Automated Meter Reading
Available from Smart Meters, these readings provide instant and
accurate data about commercial electricity consumption.
AQ or AAQ
Annual Quantity or Annual Agreed
An estimate of future consumption of commercial gas, as
calculated by the distribution network, Transco.
Authorised Supply Capacity
This only applies to Maximum Demand customers and is the
commercial electricity 'load' allowed to be taken to run industrial
Climate Change Levy
A charge introduced by the Government in 2001 on commercial
electricity and gas, intended to encourage less consumption
and reduce emissions of greenhouse gases.
A greenhouse gas, measured in tonnes, that makes up the Carbon
Footprint belonging to each commercial electricity user.
Carbon Reduction Commitment
A scheme designed to improve energy efficiency in large
organisations and mandatory for the 5,000 biggest commercial
electricity users in the UK.
A measurement of the energy contained in gas and usually quoted
in megajoules per cubic metre (MJ/m3).
Department of Energy and Climate
Created by the Government in 2008 to 'ensure our energy is
secure, affordable and efficient'.
Estimated Annual Consumption
Similar to AQ but for profiling the consumption of commercial
electricity, based on historic billing information. Sometimes known
as Calculated Annual Consumption or CAC.
Electricity Central Online Enquiry
A service provided by the electricity suppliers and distribution
companies which notifies the relevant organisations when someone is
switching commercial electricity supplier.
European Union Emissions Trading
A scheme to reduce emissions of carbon dioxide to meet targets
set out in the Kyoto Protocol.
The name for meters with the profile number '00' that are used
by energy-intensive businesses whose average peak electricity
demand was greater than 100kW in any three months of the previous
A unit of power required to run industrial machinery.
The standard unit to which business electricity charges
Levy Exemption Certificate
Issued by Ofgem to exempt the holder from paying Climate Change
Levy in addition to business electricity charges.
Liquefied Natural Gas
Gas cooled so that it condenses into a liquid and can be more
easily transported and stored.
The highest expected load drawn from the network by an intensive
commercial electricity user. Maximum Demand meter profile numbers
begin with '05, 06 07, 08' and usually have their own types of
Meter Point Administration Number
Also known as a 'supplier number' or an 'S number', this is the
unique identifying number that can be found on a business
electricity price bill. The first two digits give your meter
profile (03 or 04 for small businesses, 05 to 08 for maximum demand
and 00 for half-hourly.
Meter Point Reference
The unique identifying number of a commercial gas supply. It is
10 digits and can be found on a bill.
Meter Serial Number
A unique number used to identify a meter which will be displayed
on the front of most meters.
Office of Gas and Electricity
The organisation set up to regulate and promote competition
within the deregulated energy industry.
HM Revenue & Customs form to claim exemption or discount
from the Climate Change Levy (CCL).
Renewable obligation certificate
Holds details of exactly how a unit of renewable electricity was
produced, who produced it and who bought the electricity.