Business Energy Glossary | Bright Edge Jargon Buster

Energy terms can often feel like another language, especially when you’re busy running a business. Whether you're reviewing your latest bill or comparing contracts, understanding the terminology can make a huge difference to your costs and confidence.

At Bright Edge, we think jargon should never stand between you and a better deal. That’s why we've created this easy-to-use glossary to explain the terms that matter in plain English.

Why It Pays to Understand Energy Terms

Choosing the right supplier. Managing your usage. Timing your contract renewals. These aren’t just admin tasks, they impact your bottom line. Without clear insight into how the market works, it’s easy to end up paying more than you need to.

Our jargon buster helps you ask smarter questions, avoid traps, and spot value when you see it.

Business Energy Terms A to Z

A

• Annual Consumption: The total gas or electricity your business uses annually, shown in kWh.

• Availability Charge: A fixed cost for keeping energy available to your premises, regardless of how much you use.

• Automatic Meter Reading (AMR): A tool that submits meter readings directly to your supplier, reducing errors and estimated bills.

B

• Base Load: The minimum power level your operations need, even during quiet periods.

• Bill Validation: Checking your energy invoices for errors or discrepancies. A simple but powerful cost control step.

• Broker: A third party (like Bright Edge) that shops the market on your behalf to find the best deal for your usage profile.

C

• Carbon Footprint: The total greenhouse gases emitted as a result of your energy use and wider operations.

• Capacity Charge: A fee linked to the peak power your site may require—particularly relevant for high-demand operations.

• Change of Tenancy (COT): A formal process when a business moves in or out of a property, triggering a contract update.

• Climate Change Levy (CCL): A government-imposed charge designed to encourage energy efficiency in commercial buildings.

D

• Deemed Contract: A temporary contract type, often more expensive, applied when no formal energy deal is in place.

• Direct Debit: A common payment method allowing automatic deductions on your chosen date.

• Distribution Network Operator (DNO): The company responsible for maintaining local electricity infrastructure in your region.

E

• Energy Audit: A structured review of how your business uses energy, designed to uncover saving opportunities.

• Energy Consultant: An advisor (like our experts at Bright Edge) who helps optimise costs and identify smarter energy choices.

• Energy Contract: The formal agreement between your business and energy supplier covering rates, terms, and services.

F

• Fixed Rate Contract: A deal that locks your unit rate for a set period, providing cost certainty against price fluctuations.

• Forecasting: Using past data to estimate future energy needs. Essential for planning and avoiding surprises.

G

• Gas Meter: A device measuring your business's gas usage. Regular readings help ensure fair billing.

• Green Energy: Electricity and gas produced from renewable or low-carbon sources, such as solar, wind, or hydro.

H

• Half-Hourly Meter: A specialist meter used by larger energy users to record usage every 30 minutes for detailed tracking.

I

• Import Capacity: The maximum amount of power your building is permitted to draw at any one time.

• Industry Regulator: Ofgem in the UK—responsible for keeping the market fair and protecting customer interests.

K

• Kilowatt-Hour (kWh): The unit used to measure energy consumption. You’ll see this on your bills.

L

• Letter of Authority (LOA): A signed permission form allowing Bright Edge to speak to suppliers and compare deals for you.

• Load Management: A strategy to reduce demand during peak times or spread usage more efficiently.

M

• Meter Point Administration Number (MPAN): A reference number tied to your electricity connection.

• Meter Point Reference Number (MPRN): A unique identifier for your gas supply.

N

• Net Zero: Achieving balance between the emissions you produce and those you offset or eliminate.

• Network Charges: Infrastructure fees baked into your bill to cover distribution costs.

O

• Out-of-Contract Rates: High-cost rates charged if you haven’t agreed a new deal before your current one ends.

• Ofgem: The UK authority that oversees energy supplier behaviour and price fairness.

P

• Peak Demand: The highest energy usage point during your working day or week. Affects how your charges are calculated.

• Power Purchase Agreement (PPA): A direct contract with a generator, often used by larger companies to secure renewable supply.

R

• Rollover Contract: When your deal is renewed automatically without your approval—often at worse terms.

• Renewable Energy: Power from natural, regenerative sources such as sunlight or wind.

S

• Smart Meter: A real-time energy monitoring tool that sends usage data to your supplier automatically.

• Standing Charge: A flat daily fee for maintaining your connection, regardless of how much energy you use.

• Supplier: The company that provides your business gas or electricity service.

T

• Time-of-Use Tariff: A pricing model with variable rates depending on when energy is consumed.

U

• Unit Rate: The cost per kWh of energy consumed. This is the main part of your variable charge.

V

• VAT on Energy: Usually 20% for businesses, although some may be eligible for a reduced rate.

• Variable Rate Contract: A flexible deal where your unit rate follows the market—can go up or down.

W

• Wholesale Energy Price: The base price suppliers pay to buy energy before passing it on to customers.

Still unsure what something means?

No problem. At Bright Edge, our team is here to explain the fine print, decode your contracts, and find energy deals that genuinely work for your business. Get in touch for a friendly, jargon-free review of your current setup.

Let Bright Edge negotiate your business energy rates & see how much you could save

Contact us today to get started