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Rangebound

Where market conditions support neither a rise nor fall in prices, therefore they stay at a similar level.
 

Reactive Charges 

This is a charge that is applied to cover the cost of reactive power.
 

Reactive power

This is the term for additional electricity that is sent to aid the delivery of the actual electricity used within an organisation. In most cases electricity faces some resistance when being used i.e. through electro magnetism, therefor reactive power (also known as useless power) is sent to compensate this resistance. The end users never actually use this electricity but a charge for it is still factored into their bills.
 

Renewable Energy 

This term is used to describe the energy produced using naturally replenishing resources such as solar power, wind, tidal and biomass boilers.
 

Renewable Energy Certificates (REC's) 

These are used to authenticate the environmental attributes of the power produced from renewable energy projects and are sold separate from commodity electricity.
 

Renewable Obligation (RO) 

Renewable obligation was first launched in April 2002 as part of the Utilities Act. It requires all suppliers to ensure that a certain amount of their electricity is generated from accredited renewable sources. It is designed to support and encourage the transition towards a low carbon energy sector.
 

Renewables Obligation Certificate (ROC) 

Eligible renewable generators receive Renewable Obligation Certificates (ROCs) for each MWh of electricity generated. These certificates can then be sold to suppliers in order to fulfil their renewable obligation.
 

Resource Efficient Scotland (RES)

This is a programme from Zero Waste Scotland that is funded by the Scottish Government and the European Regional Development fund. It helps Scottish SME’s to reduce costs by implementing resource efficiencies in energy, water and raw materials.
 

Rollover Contract

This is a very expensive trap that is all too easy to fall into. Rollover contracts occur when an organisations energy contract is due to end, but they don’t cancel it within a set time period. The supplier is then authorised to automatically enrol the organisation into a new contract which is often set at an extremely high and non-competitive tariff.
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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