FAQs

Confused by terms like MPAN, AMR, or standing charge? Whether you’re managing a property or running a business, understanding your energy supply shouldn’t be complicated.

This quick guide breaks down key terms—like how your electricity and gas are identified, billed, and measured—so you can take control of your usage and costs with confidence.

 

What is an MPAN?

 

An MPAN is a unique 21-digit number that identifies your electricity supply point. This broken down as per the below:

 

• Profile Class: The first two numbers refer to your property’s profile class and give the supplier an indication of the property’s typical electricity consumption. Domestic properties will be either in profile class 01 (domestic unrestricted, for those on standard variable tariffs) or 02 (domestic Economy 7).

 

• Meter Time Switch Code (MTC): The next three numbers refer to how many registers, either sets of meter numbers or dials, your electricity meter has – such as a single rate one, a day/night split or a seasonal time of day.

 

• Line Loss Factor (LLF): The next three numbers, indicating the Distribution Use of System (DUoS) charges that the distribution network expects to charge your supplier for using the networks and cables in your area.

 

• Distribution ID: The next two digits identify the regional distribution company for your electricity supply. The distribution company is responsible for the management of the wires that deliver electricity to your home. This number will be useful if you’re trying to figure out who operates the electricity network in your area.

 

• Meter Point ID: An eight-digit number, unique within the distribution area, to identify the metering point.

 

• Check digit: A final three-digit sum calculated from the Distributor ID and Meter Point ID numbers to verify both numbers.

What is an MPRN?

 

An MPRN is a unique number typically between 6-10 digits that identifies your gas supply point.

 

What is an AMR/SMART meter? 

 

AMR stands for Automated Meter Reading device. An AMR meter works by creating a connection channel between a business customer and its energy supplier.

 

• For an AMR meter, the communication only goes in one direction, to the supplier. The energy supplier will receive meter reads once per month, so there is no need for manual meter reads. This ensures accurate billing and allows the customer to analyse their energy usage data.

 

• An AMR Smart Meter is required to be produced to an industry standard, referred to as the Smart Metering Equipment Technical Standard (SMETS). The latest generation of the AMR smart meters is SMETS2, which features many benefits over both conventional and AMR meters.

 

• They share the same functionality of AMR meters by automatically sending a meter reading and diagnostic data to your energy supplier; however, they use a centralised data communication company (DCC) for their communications to the supplier. This allows them to both send and receive messages from their energy provider.

 

• The AMR smart meter also comes with an optional Smart Energy Display, which shows you exactly how much energy you’re using in real time. This allows businesses to gain more control over their energy consumption and bills

 

 

What is a standing charge?

 

A standing charge is a fixed daily amount you have to pay for energy, no matter how much you use. This covers the cost of maintaining the energy infrastructure, operational expenses and ensuring fairness in pricing by making all customers contribute to network.

 

What is a unit rate?

 

A unit rate is the price-per-unit of the gas and electricity you consume in your household. 

 

 

What is the correction factor?

 

The volume correction factor is used to consider the temperature, pressure, and atmospheric conditions at a property.

 

 

What is the calorific value?

 

The Calorific Value (CV) is a measure of heating power and is dependent upon the composition of the gas. The CV refers to the amount of energy released when a known volume of gas is completely combusted under specified conditions. 

 

 

What are the different meter types?

 

• Standard – Standard meters record the gas or electricity you use on a single rate.

 

• Economy 7 – Economy 7 times differ in terms of on-peak and off-peak periods depending on where you live. In most cases, the off-peak hours are in one overnight block, starting from around 11pm during winter months, although this may change by one hour during British Summer Time.

 

• Off Peak – Evening/Weekend – these meters have 2 readings. One is for ‘day’ and one is for ‘night’. Between certain times, the energy you use records at a cheaper rate. These times depend on things like where you live and the time of year.

 

• Evening/Weekend/Night – these meters have 3 readings. One is for ‘day’, one is for ‘night’. Between certain times, the energy you use records at a cheaper rate. These times depend on things like where you live and the time of year

 

 

What is a micro business?

 

 A business is classed as a micro-business if it:

• employs fewer than 10 employees (or their full time equivalent)
• has an annual turnover or balance sheet of less than £1.8 million; or
• uses no more than 100,000 kWh of electricity per year; or
• uses no more than 293,000 kWh of gas per year.

 

 

What is a small business?

 

 A business is classed as a small business if it:

• employs fewer than 50 employees (or their full-time equivalent)
• AND has an annual turnover of at most £6.5 million or a balance sheet total of £5.0 million or;
• has an annual electricity consumption of not more than 200,000 kWh (revised from the originally proposed 500,000 kWh); or
• an annual gas consumption of not more than 500,000 kWh

 

 

How far back can a supplier legally back bill?

 

Suppliers are legally only able to back bill to a period of no more than 12 months. They do have the ability to back bill more than 12 months however they can only do so if they believe the clients actions have prevented them from issuing an invoice.

 

 

What is Feed in Tariff (FiT)?

 

The Feed-In Tariff (FIT) program is designed to encourage the adoption of renewable and low-carbon electricity production on a small scale. It mandates specific licensed electricity providers to offer set payments to micro and small-scale producers of renewable energy and micro Combined Heat & Power (CHP) systems for the electricity they produce and supply to the National Grid. This initiative aims to foster a widespread shift towards environmentally friendly electricity generation technologies.

 

 

What is Climate Change Levy (CCL)?

 

Climate Change Levy is a government-imposed tax to encourage the reduction in greenhouse gas emissions. It is also intended to encourage businesses to use energy more efficiently. CCL is charged on the units/kWh used and is index linked.

VAT can also be charged on the Climate Change Levy – except where the supply qualifies for the reduced VAT rate. Renewable energy is exempt from CCL.

 

 

What is kVa or “Agreed supply capacity”?

 

kVA, short for Kilovolt Amperes and also referred to as Total Power, represents the maximum power demand agreed upon for your premises with your Distribution Network Operator.

 

 

What happens if I do not agree a new contract for my supply?

 

If a new contract is not agreed, either with the incumbent supplier or a new supplier the supply will default onto out of contracted rates. This could lead to the supply being billed on higher than average rates.

 

 

Does the energy price cap apply to businesses?

 

Unfortunately, the price cap doesn’t cover business energy rates, this only applies to domestic rates. Domestic and business energy contracts are different, this is mainly due to how energy is bought and sold, and the way contracts are drawn up.