Commercial Gas Jargon
Explanations of gas terminology you’ll encounter in the commercial energy sector
Annual Quantity (AQ or AAQ)
The annual quantity of gas consumed measured in kilowatt hours (kWh).
The calorific value (CV) is a measurement of the amount of energy contained in the gas. CV is usually quoted in megajoules per cubic metre (MJ/m3). Gas delivered to your premises will have a CV of between 37.5 MJ/m3 and 43.0 MJ/m3. This is continually measured by National Grid for each Local Distribution Zone and passed to your gas supplier daily.
The correction factor is used to take account of the temperature and atmospheric conditions at a site. It is generally of the order of 1.02264.
The Meter Point Reference (MPR) The number given to uniquely identify every meter in the country.
This is the strict contract that governs Shippers relationship to National Grid. It is designed to ensure a level playing field.
Producers are the companies who explore for gas, drill wells and take the gas to Coastal Delivery Facilities.
Most consumers use more gas in the cold winter months than the warmer summer months. If you are on a variable rate contract, in the absence of meter reads, we will bill you on the standard profile, as a percentage of your Annual Quantity, illustration below.
If you are on a budget plan contract, we will bill you on a flat rate of 8.33% of your Annual Quantity per month.
Regional Gas Distribution Networks
There are five regional gas distribution network companies in the UK who between them own and operate the UK’s network of gas pipelines. The five companies are National Grid plc, Wales & West Utilities Limited, Scotland Gas Networks plc, Southern Gas Networks plc and Northern Gas Networks Limited.
Ofgem regulates the gas and electricity industries in Great Britain. Ofgem is governed by an authority and its powers are provided for under the Gas Act 1986, the Electricity Act 1989 and the Utilities Act 2000. Everything that Ofgem does is designed to promote and protect the interests of gas and electricity customers.
The manufacturer’s number, which is stamped on each meter.
BES Commercial Gas is a licensed gas shipper. The Shipper is the company that arranges for the transporter to move the gas from the beach to the consumer. Shippers must have a licence from OFGEM before they can ship gas.
BES Commercial Gas is a licensed gas supplier. Suppliers are the companies that sell gas to consumers. Suppliers must have a contract with a shipper to arrange to have their gas conveyed to the consumer. Suppliers must obtain a licence from Ofgem before they supply gas. A full list of licensed gas suppliers can be found on the Ofgem website.
This is a unit of measurement for gas. 1 therm is equal to 29.3071 kWh.
The Transporter is the company that transports gas from the coastal delivery facilities (where gas comes ashore to consumers) on behalf of the shippers. All gas in the UK is transported by one of the Regional Gas Distribution Networks.