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Electricity Market reform (EMR)     

This is a government programme that was introduced in 2013 with the sole aim of transforming the UK’s electricity system to ensure that the future electricity supply is secure, low-carbon and affordable (The Energy Trilemma). Under this program a number of new mechanisms have introduce mainly the Capacity Market and Contracts for Difference. 

Electricity Pool 

The way by which electricity is traded between generators and suppliers (as well as some very large consumers).

Energy Cost 

This is the cost of the electricity purchased on the wholesale market.

Energy Efficiency 

This is the process of reducing the amount of energy consumed within an organisation, whilst still enabling it to operate effectively.

Energy From Waste 

this is the process of generating energy in the form of electricity and/or heat during the treatment of waste. It is an alternative to landfill.

Energy Management System

A computer-based system that monitors and manages a building's utility consumption such as heating, electricity, lighting, water, waste and power systems. Energy management systems can help organisations take control of their resources in the most efficient way possible, saving energy and in most cases money.

Energy Only 

An offer of electricity that has no delivery charges (DUoS & TUoS) added at the point of quotation.

Energy Performance Certificate (EPC)

An Energy Performance Certificate (EPC) is a report that assesses the energy efficiency of a property and recommends specific ways in which the efficiency of your property could be improved. It is intended to inform potential buyers or tenants about the energy performance of a building, so they can consider energy efficiency as part of their investment or business decision. The scale is from A-G, A being the most efficient.

Energy Saving Opportunity Scheme (ESOS) 

This was the Department of Energy and Climate Change (DECC), now the Department for Business, Energy & Industrial Strategy (BEIS), answer to Article 8 of the EU Energy Efficiency Directive, whereby “All member states had to introduce a program for energy audits for large enterprises”. All companies that have > 250 employees or have an annual turnover of > €50m and a balance sheet of > €43m need to be ESOS compliant. This means that organisations meeting the qualification criteria must undertake energy audits on 90% of the organisations total carbon emissions every 4 years. The process needs to be overseen by a qualified ESOS lead assessor and be signed off by senior management within the organisation. Those that fail to comply will be penalised and face fines.

Energy Saving Trust (EST)

This is an independent non-profit organisation, set up and largely funded by the Government to manage a number of programmes to improve energy efficiency, particularly in the domestic sector.

Energy Storage

The ability to capture energy produced at one time for use at a later date. Energy storage can help deal with fluctuations in demand and generation by allowing excess electricity to be saved for periods of higher electricity demand.

The Energy Trilemma

This is the term given to the challenge of providing energy that is low carbon, secure and affordable.

Environment Agency

The leading public body for protecting and improving the environment in England and Wales.

Estimated Annual Consumption (EAC)

Estimated Annual Consumption. An estimate of your forecast annual consumption provided by your data collector, based on historical meter reads.

European Union’s Emissions Trading Scheme (EU ETS) 

This is the world's biggest scheme for trading greenhouse gas emissions allowances. Launched in 2005, it covers some 11,000 power stations and industrial plants in 30 countries, whose carbon emissions make up almost 50% of Europe's total.

A cap on the total emissions allowed within the scheme is set, and allowances adding up to the cap are provided to the companies regulated by the scheme. The companies are required to measure and report their carbon emissions and to hand in one allowance for each tonne they release. Companies can trade their allowances, providing an incentive for them to reduce their emissions. ETS is an EU mechanism for the trading of carbon dioxide and other greenhouse gas emissions. A market-based ‘cap and trade’ on emissions that allows parties to buy and sell permits for emissions or credits. 
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  

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