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Capacity Charge 

This is a charge set by the local Distribution Network Operator (DNO).The fee is charged on a per unit basis and is used to cover investment and maintenance costs of the electricity network.
 

Capacity Market

The government established the Capacity Market (CM) as part of its Electricity Market Reform policy. Its purpose is to incentivise investment in more sustainable, low-carbon electricity capacity at the least cost for energy consumers. The Capacity Market offers an “insurance policy” against the possibility of future blackouts by making regular payments to reliable forms of energy. In the event that the energy system is tight, these sources of energy will be called upon to boost capacity.
 

Carbon Capture / Storage (CCS)

This is a technological solution used to capture up to 90% of the carbon dioxide (CO2) emissions produced from the use of fossil fuels in electricity generation and industrial processes, preventing the carbon dioxide from entering the atmosphere.


Carbon Footprint 

The amount of carbon dioxide released into the atmosphere as a result of the activities of a particular individual, organisation, or community.
 

Carbon Intensity 

Carbon intensity is the amount of carbon (in terms of weight) emitted per unit of energy consumed. A common measure of carbon intensity is the weight of carbon per British thermal unit (BTU). It allows the emissions from different amounts of electricity to be compared.
 

Carbon Neutral 

An activity or process that doesn’t add to the net amount of CO2 in the atmosphere.
 

Carbon Offset/Carbon Offsetting 

This is the term given to the process in which the overall amount of carbon released into the atmosphere is offset by preventing the further release of carbon or removing it elsewhere.
 

Carbon Reduction Commitment (CRC)

The Carbon Reduction Commitment (CRC) Energy Efficiency Scheme was introduced by the UK Government in 2010. Its purpose is to improve energy efficiency and cut carbon dioxide emissions in high energy use private and public sector organisations.
 

Carbon Tax 

A tax imposed on fossil fuel usage usually based on the carbon content – generally designed to curb use rather than just raise revenue.
 

Carbon Trading 

The exchange of personal, corporate or national credits to maintain and gradually reduce carbon emissions. Companies, nations or individuals who beat their carbon targets can sell the balance as credits to those that exceed their limits.
 

Circular Economy

An industrial economy that promotes resource efficiency by replacing a linear ‘take, make, dispose’ model of production with one where materials function at their highest utility at all time. The process involves minimising waste, reusing resources or adding value to them so that they are desirable to another organisation. Ultimately, businesses adopting a circular economy approach should benefit by improving efficiency, reducing resource costs and reducing waste.
 

Clean Coal Technologies (CCTs)

These are technological solutions that makes using coal as a power source more environmentally friendly.   
 

Climate Change 

The variation in the Earth’s global climate over time. Man-made climate change is a variation directly attributable to human behaviour and is attributed largely to the increased levels of atmospheric carbon dioxide produced by the use of fossil fuels.
 

Climate Change Agreement

This is a voluntary agreement between the Government and organisations, in which intensive energy users can receive up to 90% reduction in the climate change levy if they meet pre-determined carbon reduction targets.
 

Climate Change Levy (CCL) 

This is a tax placed on energy delivered to non-domestic users as an incentive to increase energy efficiency and reduce carbon emissions. CCL is chargeable only on units/kWh used and not on any other component of the bill, e.g. standing charge. Intensive energy user have the opportunity to sign up to a Climate Change Agreement (CCA) which could result in a 90% reduction in this tax. 
 

Combined Cooling Heat and Power (CCHP) 

A system in which fuel is used to simultaneously produce electrical (or mechanical) power plus recovers useful thermal energy for use in cooling & heating.
 

Combined Cycle Gas Turbine (CCGT) 

This is a highly efficient for of electricity generation that combines gas-fired turbines with steam turbines. These are usually used during peak demand.
 

Combined Half Hourly (HH) Data Charge 

Costs associated with collecting and handling metering data from half hourly (HH) read meters.
 

Combined Heat and Power (CHP) generation 

This is the process in which thermal energy that would otherwise be wasted is used for heating.
 

Commodity Charge 

A fee levied by National Grid on the quantity of gas transported through the system.
 

Compressed Natural Gas (CNG)       

This is a highly pressurised gas, usually methane, which can be used instead of petrol or diesel. 
 

Connection Agreement 

A document which states the Agreed Capacity for a property with the local Distribution Network Operator (DNO).
 

Consultant

Organisations like us that that help other organisations with their environmental and energy management. This could include negotiating cheaper utility contracts, achieving legal compliance or developing and implementing resource reducing solutions.
 

Contango

This is the market condition wherein the energy market prices of the current day are lower than the predicted future market prices for energy. This is seen as a negative bias as it means that customers would be spending more on their future energy contracts if they were to lock in now. The alternative to this is backwardation.
 

Contracts for Difference (CfD)         

This is a private law contract between a low-carbon electricity generator and the Government. The generator party is paid the difference between the ‘strike price’ – a price for electricity reflecting the cost of investing in a particular low-carbon technology – and the ‘reference price’– a measure of the average market price for electricity in the UK market. CfD provides long-term price security to renewable energy providers, allowing investment to come forward at a lower cost of capital and therefore at a lower cost to consumers.
 

Contract Price 

The unit price of gas or electricity which the shipper charges the customer.
 

Contract Price Structure 

This indicates a supply offer, which has all delivery charges (DUoS & TUoS) built into the unit rates for the supply of electricity.
As we all know knowledge is power, especially within our industry. If you want to know more about any terms covered, please get in touch on 0800 61 22 200 or email us at hello@esaveuk.com  

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