Feeling lost for words?

C

Carbon neutral

Carbon neutrality is the state where an individual, organisation, or activity effectively balances its carbon emissions by reducing its carbon footprint and offsetting the remaining emissions through environmental projects. The first step towards carbon neutrality involves adopting emission reduction strategies, such as enhancing energy efficiency, incorporating renewable energy sources, and optimising operational processes to minimise overall carbon emissions. The second step entails investing in carbon offset projects, including initiatives like reforestation, renewable energy developments, or other activities that remove or prevent the release of an equivalent amount of greenhouse gases elsewhere.

Carbon neutrality is crucial in global efforts to combat climate change, allowing entities to mitigate their environmental impact and contribute to sustainable practices. The commitment to becoming carbon neutral aligns with international efforts to limit the rise in global temperature and addresses the urgent need to reduce greenhouse gas emissions.

Carbon footprint

A carbon footprint is the total amount of greenhouse gases, particularly carbon dioxide, produced directly or indirectly by an individual, organization, product, or activity, reflecting its impact on the environment in terms of contributing to global warming and climate change. Measuring a carbon footprint involves quantifying the total amount of greenhouse gas emissions, expressed in carbon dioxide equivalents (CO2e), associated with a specific entity, such as an individual, organisation, product, or activity.

D

Dual fuel tariff

Dual fuel refers to a utility service arrangement in which a customer receives both electricity and gas services from a single energy provider. Instead of sourcing electricity and gas from separate suppliers, a dual fuel customer combines these services under a single contract with one utility company. This integrated approach is common in many regions and is designed to simplify billing and account management for consumers.

The term dual fuel often specifically refers to the combination of electricity and gas services, as these are two major energy sources commonly used in households. By opting for dual fuel services, customers may benefit from potential cost savings, streamlined communication with a single provider, and simplified administration of their energy accounts. Additionally, some energy providers offer incentives or discounts for customers who bundle electricity and gas services with them.

E

Economy 7 tariff

Economy 7 is a different kind of electricity game where you have two sets of hours: 7 hours with cheaper rates and 7 hours with regular rates. It’s called a ‘time-of-use’ tariff because the cost of electricity depends on when you use it. The cool part is that the 7 hours with cheaper rates usually happen at night, letting you save money while most people sleep.

Economy 7 is more common than its sibling, Economy 10. Many people like it because it’s widely available and easy to find. So, while you might not get as much flexibility with different time blocks as in Economy 10, you can still enjoy a good deal on electricity during those 7 magical night-time hours.

Economy 10 tariff

An Economy 10 tariff is a special pricing plan for electricity. Instead of having 7 hours with cheaper rates, you get 10 hours of lower-priced electricity. But what makes it even cooler is that these discounted hours can be spread out at different times during the day and night. For instance, you might have 5 hours of lower rates at night, and during the day, you could enjoy a 3-hour block and a 2-hour block of discounted rates. It’s like having more chances to save on your electricity bill, especially during the daytime.

However, here’s the catch – these special Economy 10 plans are a bit like rare gems. There aren’t as many available compared to the plans known as Economy 7. So, while Economy 10 offers you more flexibility with extra daytime off-peak hours, it’s also a bit unique and not as common as the other options out there.

Electrical grid

An electrical grid is a network that facilitates the generation, transmission, and distribution of electricity from power plants to consumers. Comprising power plants, transformers, transmission lines, and distribution systems, its primary goal is to ensure a reliable and efficient supply of electricity. However, it traditionally lacks advanced technologies for real-time monitoring, communication, and coordination, making it less adaptable to modern challenges.

Electricity-only

Electricity only refers to a type of energy tariff or plan offered by utility providers that covers the electricity supply only. In the context of energy services, the tariff or plan includes the provision of electricity but does not include the supply of natural gas. Consumers can choose between different types of energy tariffs based on their energy needs, and electricity-only plans are designed for those who rely solely on electricity for their energy requirements. This could include electricity used for lighting, appliances, heating (if electric heating is used), and other electrical devices in the home.

Similar to gas-only plans, electricity-only plans cater to households that do not use natural gas or those who prefer to manage their gas and electricity services separately. Some consumers may choose this option based on their energy preferences, usage patterns, or the availability of energy sources in their area. It’s important to review and compare different energy plans to find the one that best suits individual needs and

Energy Price Cap

The Energy Price Cap is a measure implemented by the Office of Gas and Electricity Markets (Ofgem), the regulator for the electricity and gas markets in Great Britain. The purpose of the energy price cap is to protect consumers from paying excessively high prices for their energy bills, especially for those on default or standard variable tariffs.

The energy price cap is typically updated twice a year, in April and October, based on various factors such as wholesale energy prices. According to Ofgem’s latest statement, starting on January 1, 2024, the cost of energy for an average household utilising both gas and electricity and making payments via Direct Debit will experience an increase of £94. Consequently, the annual price cap will rise from £1,834 to £1,928. The adjustment in the price cap is attributed to the recent surge in wholesale gas costs influenced by global events, including the ongoing conflict in the Middle East.

Energy Price Guarantee

The Energy Price Guarantee (EPG) is a government initiative in the UK that sets maximum prices for gas and electricity to mitigate the impact of price increases, providing assurance to consumers for a specific period. The Energy Price Guarantee (EPG) was introduced on October 1, 2022, lasting two years as the government’s primary response to the energy crisis.

The EPG aimed to limit household price increases by setting maximum prices for gas and electricity below those allowed by the existing price cap. The government compensated energy suppliers for adhering to these lower prices. For consumers on standard variable tariffs, the maximum prices were determined by the lower EPG or the regular energy price cap. The EPG remained effective from October 2022 to June 2023 when it was lower, but with the subsequent decrease in the price cap in July, the EPG has become unnecessary until its conclusion in March 2024.

Energy Switch Guarantee

The Energy Switch Guarantee is a commitment made by energy suppliers in the United Kingdom to make the process of switching energy providers easier, quicker, and more reliable for consumers. The guarantee is an initiative supported by the UK government and regulator Ofgem (Office of Gas and Electricity Markets) to promote competition and consumer choice in the energy market. It’s important to note that the Energy Switch Guarantee applies to domestic customers (residential customers) who are switching between suppliers. The guarantee aims to build consumer confidence in the switching process and encourage more people to explore and take advantage of competitive energy deals in the market.

Energy tariff

Tariffs can vary based on factors such as the type of energy consumed, the time of day, and the overall consumption volume. Common types of energy tariffs include fixed-rate tariffs, where the unit cost remains constant for a specified period, and variable-rate tariffs, where prices may fluctuate based on market conditions. Additionally, time-of-use tariffs charge different rates for electricity consumed during peak and off-peak hours. Choosing an appropriate energy tariff is essential for consumers to manage costs effectively based on their consumption patterns and preferences.

F

Fixed rate tariff

A fixed-rate tariff is a type of energy pricing plan offered by utility providers where the unit cost for electricity or gas remains constant for a specified duration, typically a set number of months or years. During this agreed-upon period, customers are protected from fluctuations in energy prices in the market. This means that regardless of changes in the overall energy market, the rate consumers pay per energy consumption unit remains fixed, providing them with price stability and predictability.

Fixed-rate tariffs are often chosen by consumers who prefer to have a consistent and known cost for their energy usage, allowing for better budgeting and protection against sudden increases in energy prices. However, it’s important to note that fixed-rate tariffs may have higher initial costs than variable-rate tariffs, as consumers pay for the security of price stability.

Fossil fuels

Fossil fuels, encompassing coal, oil, and natural gas, are non-renewable energy sources formed from ancient organic matter. While they have played a pivotal role in powering human development and industrialisation, their utilisation poses significant environmental challenges. The extraction and combustion of fossil fuels release substantial amounts of carbon dioxide and other pollutants into the atmosphere, contributing to climate change and air pollution. This environmental impact is particularly pronounced in the case of coal, which is the most carbon-intensive of the fossil fuels, as well as in the extraction of oil and natural gas.

The finite nature of fossil fuel reserves and their association with environmental degradation underscore the urgent need for transitioning towards more eco-friendly and sustainable energy alternatives. The detrimental consequences of fossil fuel use, ranging from air and water pollution to disruptions in climate patterns, have prompted global initiatives to reduce reliance on these resources. Embracing cleaner and renewable energy sources is essential for mitigating the adverse effects of fossil fuel combustion and fostering a more sustainable and environmentally conscious energy landscape.

G

Green energy

Green energy is energy generated from environmentally friendly and sustainable sources. Often synonymous with renewable energy, green energy aims to reduce the impact on the planet. This includes using renewable resources like solar, wind, hydropower, and biomass. The focus is on harnessing nature’s elements responsibly, steering away from traditional fossil fuels to create a cleaner and more sustainable energy landscape. Choosing green energy supports efforts to combat climate change and promote a healthier environment.

Over the last five years, Britain has subtly affirmed its standing as one of the global frontrunners in green energy production. Granted, this is attributed to subsidies exceeding £10 billion; nonetheless, last year, a quarter of the electricity produced in the UK originated from wind, solar, and other renewable sources. In November 2023, the Department of Energy Security and Net Zero announced a huge boost for UK green industries with £960 million government investment and a major reform of power network.

Gas-only

Gas only typically refers to a type of energy tariff or plan offered by utility providers, specifically for the supply of natural gas. In the context of energy services, it indicates that the tariff or plan covers only the provision of gas and not electricity. Consumers can choose between different types of energy tariffs based on their energy needs, and gas-only plans are designed for those who rely solely on natural gas for their energy requirements. This could include gas used for heating, hot water, cooking, and other household needs.

It’s important to note that in many households, both gas and electricity are used, and providers often offer dual-fuel plans that cover both energy sources. Dual-fuel plans can simplify billing and sometimes offer cost savings compared to having separate gas and electricity plans. However, for those who do not use electricity or prefer to manage their gas and electricity services separately, opting for a gas-only plan is a common choice.

N

Non-renewable energy

Non-renewable energy refers to sources of energy that are finite and cannot be naturally replenished within a short timeframe. These resources are gradually depleted as they are extracted and used for power generation. The main characteristic of non-renewable energy is its limited availability, and once consumed, it cannot be readily replaced on human timescales. The primary types of non-renewable energy sources include fossil fuels such as coal, oil, and natural gas, as well as nuclear energy derived from uranium and other radioactive materials.

Nuclear energy

Nuclear energy is a powerful source of electricity that comes from the tiny particles inside atoms. The process, called nuclear fission, involves splitting the nucleus (the centre) of an atom, often uranium or plutonium. This split releases a tremendous amount of heat energy, which is then used to turn water into steam. The steam spins turbines connected to generators, producing electricity. Unlike burning fossil fuels, nuclear power doesn’t create air pollution during operation, but it does produce radioactive waste that needs careful management.

While nuclear energy can generate large amounts of electricity without producing greenhouse gases, it comes with challenges. One major concern is the safe disposal of radioactive waste, which remains hazardous for a long time. Additionally, accidents, though rare, can have serious consequences. Despite these challenges, nuclear power is part of the energy mix in many countries, and technological advancements continue to address safety and waste management issues.

Net metering

Net metering is a billing system allowing individuals and businesses generating their own renewable energy, like solar or wind power, to connect their systems to the electrical grid. Through a special meter called a net meter, the excess electricity produced beyond what is consumed is fed back into the grid, earning the “prosumer” (producer-consumer) credits. These credits can offset electricity drawn from the grid when the renewable system isn’t generating enough power. Net metering serves as an economic incentive, reducing electricity bills and promoting the adoption of sustainable energy sources, contributing to a more decentralised and eco-friendly energy landscape.

O

Ofgem

Ofgem, short for the Office of Gas and Electricity Markets, is the regulatory body overseeing the electricity and gas sectors in Great Britain. As a non-ministerial government department, Ofgem operates independently to ensure the fair functioning of energy markets and protect consumer interests. Its responsibilities encompass establishing and enforcing rules for market participants, promoting competition, and monitoring market dynamics. Ofgem is also tasked with issuing licenses to energy companies, setting price controls, and providing essential consumer protection measures, such as enforcing fair pricing and transparency in billing practices. In essence, Ofgem plays a pivotal role in maintaining a balanced and competitive energy landscape while safeguarding the rights and interests of British consumers.

P

Prepayment energy tariff

A prepayment energy tariff, also known as a pay-as-you-go or PAYG tariff, is a type of energy billing arrangement where customers pay for their electricity and/or gas usage in advance rather than receiving a bill after consuming the energy. Prepayment energy tariffs are often used by households or businesses that prefer a more flexible and immediate way of managing their energy expenses. It’s a popular choice for tenants, students, or individuals who want to closely monitor and control their energy usage without the surprise of a large bill at the end of the billing period.

Photovoltaic cells (PV cells)

Photovoltaic cells, often known as PV cells, are tiny devices that convert sunlight directly into electricity. Comprising semiconductor materials like silicon, these cells exhibit the photovoltaic effect, where sunlight excites electrons, creating an electric current. When connected in panels or arrays, PV cells form solar panels. Widely used in solar energy systems, these panels capture sunlight and generate clean, renewable electricity for various applications, from powering homes and businesses to supporting large-scale solar farms. The versatility and efficiency of PV cells contribute significantly to the global shift towards sustainable and environmentally friendly energy sources.

R

Renewable energy

Renewable energy is energy sourced from natural, continually replenishing reservoirs. These resources are not depleted through utilisation, and their extraction and conversion have substantially lower ecological footprints than conventional fossil fuels. Examples of renewable energy sources include solar power, derived from harnessing sunlight through photovoltaic cells or solar thermal systems; wind energy, generated by harnessing the kinetic energy of the wind with turbines; and hydropower, produced by the movement of water in rivers or waterfalls driving turbines connected to generators. Biomass and geothermal energy, derived from organic materials and the Earth’s internal heat, respectively, also contribute to the roster of renewable energy sources. These alternatives play a crucial role in fostering sustainability and reducing environmental impact as part of a global effort to transition towards cleaner and greener energy solutions.

S

Solar energy

Solar energy comes from the sun, and we use it in two main ways. First, with photovoltaic systems, where special cells turn sunlight directly into electricity. These cells are often put together in panels and can be placed on roofs or solar farms to make clean electricity for homes, businesses, and more. Second, with solar thermal systems, we focus sunlight to make heat, which can be used for making electricity or warming things up. Solar energy is a cool and clean way to power things without causing pollution or using up much water.

The best part about solar energy is that it’s good for the environment. It doesn’t create any pollution when it’s working, and it doesn’t need much water to keep going. Whether making electricity in big power plants or providing energy for individual homes, solar power is a smart choice for a cleaner and more sustainable future.

Solar panel

Solar panels are ingenious devices designed to capture sunlight and convert it into electricity. Made up of numerous small units called photovoltaic cells, these panels utilise a fascinating process called the photovoltaic effect. When sunlight hits these cells, it excites electrons, creating an electric current. The interconnected cells, typically made of semiconductor materials like silicon, form a solar panel. These panels are commonly installed on rooftops, in solar farms, or integrated into other structures, capturing sunlight and transforming it into a clean and sustainable source of electricity for homes, businesses, and communities.

The electricity generated by solar panels is direct current (DC), and to make it usable for homes and businesses, a solar inverter is employed to convert it into alternating current (AC). The remarkable aspect of solar panels lies in their capacity to harness sunlight, a renewable resource, and contribute to reducing reliance on non-renewable energy sources, consequently diminishing the environmental impact associated with traditional energy generation methods.

Sustainable energy

Sustainable energy refers to power sources that meet current energy needs without compromising the ability of future generations to meet their own. These energy solutions focus on reducing environmental impact, minimising resource depletion, and promoting long-term viability. Key characteristics include low or zero greenhouse gas emissions, minimal environmental disruption, and reliance on renewable resources. Sustainable energy is crucial in mitigating climate change and fostering a more resilient and eco-friendly energy infrastructure.

Smart grid

A smart grid is an evolved version of the electrical grid that incorporates advanced digital technologies. It integrates real-time communication, automation, and control systems, enhancing efficiency, reliability, and sustainability. Smart grids accommodate renewable energy sources, employ advanced metering infrastructure for detailed consumption data, and support distributed energy resources. With features like grid resilience and demand response capabilities, smart grids actively engage consumers in optimising their energy usage, promoting a more responsive and adaptable electricity delivery system.

Smart meter

A smart meter is an advanced metering device that records and communicates energy usage in real-time, providing consumers and utilities with accurate and timely information. Smart meters can be read remotely by utility companies, which removes the need for manual meter reading visits.

It looks like a small, rectangular box with a digital display that replaces traditional analogue meters and features easily readable numbers on display, often accompanied by buttons for scrolling through information. The meter may bear the logo or branding of the utility company providing services, and some models have a communication module for remote readings. Typically installed in areas where utility meters are common, such as near the main electrical panel, in utility rooms, or in meter boxes, the smart meter aims to provide accurate and real-time information about energy or gas consumption, promoting more efficient and convenient monitoring for users. You can learn more about how they work, their benefits, and how to install one in our step-by-step guide.

Standard variable tariff

A Standard Variable Tariff (SVT) is a default energy tariff offered by energy suppliers. It is often the default plan that customers are placed on if they have not chosen a specific energy deal or if their fixed-term energy deal has come to an end. It’s important to note that SVTs are often more expensive than fixed tariffs, and customers on SVTs may find that they can save money by actively seeking out and switching to a more competitive energy deal. The UK energy market encourages consumers to shop around and switch suppliers to find the best deals for their individual needs.