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Business energy glossary
A plain-English A–Z of the terms you'll meet when managing commercial energy. Written for non-experts, with no jargon and no assumptions.
A
- Annual Consumption
- The total amount of energy (in kWh) a business uses over a year. Suppliers use it to price contracts and assess suitable procurement options.
B
- Broker
- An intermediary who arranges energy contracts between a business and a supplier. Also known as a TPI (Third Party Intermediary).
C
- Climate Change Levy (CCL)
- An environmental tax added to most business energy bills, charged per kWh. Some businesses with a Climate Change Agreement may pay a reduced rate.
- Contract End Date (CED)
- The date your current energy contract ends. The key date for planning your renewal; missing it can lead to out-of-contract rates.
D
- Deemed Contract
- A default contract applied when a business takes over a supply without an agreed contract in place, typically a supplier's most expensive tariff.
- DUoS
- Distribution Use of System: the charge for using the local electricity distribution network to deliver energy to your premises.
E
- Electricity Meter
- The device that records how much electricity (in kWh) your premises consumes.
- Energy Broker
- See Broker.
- Energy Supplier
- The company that sells you energy and bills you for it. They buy energy on the wholesale market and arrange its delivery via network operators.
F
- Fixed Contract
- A contract where the unit rate and standing charge are fixed for the term, giving budget certainty.
- Flexible Procurement
- A procurement strategy for larger users where energy is bought in tranches over time rather than fixed all at once, allowing some market responsiveness.
G
- Green Tariff
- A tariff backed by Renewable Energy Guarantee of Origin (REGO) certificates, indicating the supplier has matched your consumption with renewable generation.
H
- Half-Hourly Meter
- An electricity meter that records consumption every 30 minutes and sends it automatically to the supplier. Required for larger sites (typically 100kW+).
K
- kWh
- Kilowatt-hour — the standard unit of energy. Your consumption in kWh multiplied by your unit rate gives the energy charge on your bill.
L
- Letter of Authority (LOA)
- A document giving a broker permission to speak to your supplier on your behalf, to request bills, confirm consumption and review your contract. It carries no obligation to switch.
M
- Meter Operator (MOp)
- A company responsible for installing and maintaining certain electricity meters, particularly half-hourly meters.
- MPAN
- Meter Point Administration Number: the unique 21-digit identifier for your electricity supply point, needed to switch electricity supplier.
- MPRN
- Meter Point Reference Number: the unique 8–10 digit identifier for your gas supply point, needed to switch gas supplier.
N
- Non-Half-Hourly Meter
- A standard electricity meter read manually or remotely at intervals, rather than every 30 minutes. Common for smaller sites.
O
- Out-of-Contract (OOC)
- Rates applied when a contract ends without a new one in place. Typically a supplier's most expensive tariff; avoidable by planning your renewal.
R
- Renewal Window
- The period before your contract end date during which you can notify your supplier of an intention to switch or renew without penalty — typically 30–120 days.
S
- Standing Charge
- A fixed daily charge covering the cost of supplying energy to your premises, regardless of how much you use.
T
- TNUoS
- Transmission Network Use of System: the charge for using the high-voltage electricity transmission network.
- TPI
- Third Party Intermediary: the formal term for an energy broker or advisor acting between a business and a supplier.
U
- Unit Rate
- The price per kWh of energy used, shown in pence (p/kWh). The main variable charge on your bill.
W
- Wholesale Energy
- Energy bought and sold on the wholesale market before being supplied to end users. Wholesale prices are a major driver of commercial energy rates.
Looking for something more specific?
For a deeper dive, see our guides to how business energy works, contract types and understanding your bill, or browse our full FAQs.
Reviewed by the Vantage Commercial Energy Team · Last updated August 2026
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