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14 Feb

Jargon Within The Energy Industry : A Glossary Of Terms


It’s easy to get overwhelmed while wading through the energy industry. Whether you’re looking for a new supplier or simply trying to understand your business’ energy bill, there’s lots of new terminology to grasp. From understanding definitions, processes, and terminology – it can quickly feel like you’re trying to understand a foreign language. If you’ve ever found yourself wondering what is meant when we talk about ‘capacity’ or ‘demand’, then this post is for you! Here’s a helpful glossary of terms commonly used within the energy industry so that you have all the knowledge needed to make better-informed decisions on your business energy requirements.

Below we have provided an A-Z style of glossary to help explain some complicated and good-to-know terms. 


Agreed Capacity 

This is the agreed amount of electricity load that can be supplied to a property. If you are renting or newly purchasing a property for your business operations this will be stated in your property’s Connection Agreement with the local DNO*.


Automatic Meter Read (AMR)

An automatic meter read is taken by a system that takes meter readings remotely. This data will be passed onto your business energy supplier for billing purposes.



Biomass energy or bioenergy, as it can often be referred to, is an energy sourced from organic materials, this includes matter from recently living organisms such as plants. This is considered a ‘carbon neutral’ method of generating energy. 


Carbon Credits 

Carbon credits are a rising form of credit that can be purchased on the voluntary carbon market. These are used to permit owners an allowance of carbon dioxide emissions. Also known as carbon offsets. Many businesses are now opting voluntarily to buy carbon credits in order to develop a ‘green business strategy’ that coincides with government plans to achieve net zero carbon. 


Carbon Neutral 

Carbon neutrality means reaching a state in which there are net-zero carbon dioxide emissions. This can be achieved by either balancing the total amount of carbon dioxide removed with the total emitted or by completely eliminating the emission of CO2 from within society. Both are something governments across the world are hoping to achieve, as agreed. 


*District Network Operator (DNO)

A district network operator or DNO is responsible for the installation and maintenance of electrical cabling, as well as the distribution of electricity to the supply point of the grid. 

If you are attempting to contact your DNO, one way you can do this is by looking them up using your location information, such as postcode. Each district will have a different DNO. 


Fixed Term Contracts

A fixed term contract is a supply contract decided with your energy provider for a fixed price over a fixed period of time. 


Greenhouse Gas (GHG) 

A GHG is simply a type of gas found in the atmosphere that traps heat. The main GHGs found in Earth’s atmosphere are water vapour, carbon dioxide, methane, nitrous oxide, and ozone.

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