Advice - Business Gas

Helpful Topics:

  1. Interruption of industrial supply
  2. Gas supply terms
  3. Who are Ofgem?

Interruption of industrial supply

 

How do I know if my gas supply can be interrupted?
This should be covered in your energy contract and your supplier should have made you aware of instances where you could have your supply interrupted. If you are unsure, contact your energy supplier in the first instance.

There are two main types of interruption which exist for normal circumstances:

  • Supplier interruption: where suppliers have the right to interrupt the customer, normally in return for a discount on price and with some notice. The notice period will be specified in your energy contract. Most interruptible contracts specify that there will only be a few hours notice, unless it is specified otherwise in their contract.
    If you have an interruptible contract, you have agreed to receive gas but are willing to have supply interrupted at some point, according to the reasons in the contract. It is probable you will be interrupted in accordance with the reasons specified in your contact at some point.
  • Transporter interruption: where National Grid or your local gas transporter has to interrupt supply (this is to Interruptible contracted customers) in the event of technical difficulties with the transportation system. Again this will be covered in the customer’s contract. This is separate to other interruption rights, which exist for use only in potential or actual emergency situations, which are detailed below. Some suppliers are also offering newer, innovative types of contract offering the opportunity for end users to sell gas back to the market when prices go very high and particularly when National Grid calls a Gas Balancing Alert.

How much notice should my supplier generally give me?
The notice period will be specified in your energy contract. Most interruptible contracts specify that there will only be a few hours notice, unless it is specified otherwise in their contract. If National Grid calls interruption to manage a transportation problem, the normal notice period is 5 hours.
 
I have an interruptible contract but how long might my supply be interrupted for?
This will depend on the reason your supplier is interrupting your supply. In the event that your supply is interrupted, your supplier should explain to you the factors likely to impact on how long your gas supply will be reduced for. The maximum duration of interruption, outside an emergency, will be specified in your contact.

How can I find out more about the different type of contracts and the benefits of each?
There are many different types of contracts designed to meet different business models. Energy requirements for large business customers are typically more complicated than those for domestic users, as the volume of gas is much greater and there are many more types of contracts to consider.

For more information please submit your details through this website

Gas supply terms

B
 
Beach Price
The cost of gas as it comes ashore in Britain at 5 Beachhead terminals (4 on the East coast 1 on the West).
 
BOM
Balance of Month: BOW – Balance of week.
 
British Gas
The original nationalised industry - supplied 100% of the gas consumed by industry/domestic prior to privatisation.
 
C
 
Calorific Value
The amount of energy produced by the combination of a specified quantity of fuel.
 
COG
Cost of Gas.
 
Correction Factor
Volume of gas recorded by the meter which is adjusted to take into account of standard temperature & pressure conditions.
 
D
 
Daily Balance
Compares shippers’ input and output allocations.  If they are more than a pre-determined % out of balance, additional charges are made.
 
DataLoggers (or Chatterbox or AMR’s – automated meter reader)
A remote reading device that fits to a supply/meter and takes regular pulse readings that can be sent by telecom lines to a central reading point.
 
Day Ahead (DA)
The next day trading price.
 
E
 
Emergency Contact Details
Sites which consumes over 732,678 kWh pa (25,000 therms pa) are required by law to provide either one 24 hr contact or three key holders to site should National Grid Transco need to gain access in an emergency situation.
 
F
 
Firm Supply
Standard constant supply of gas.
 
Flexible Contracts
Gas Contracts for larger users that allow the cost of gas to be purchased separately either on the Day or Month Ahead Indices whilst the transportation & metering charges are fixed throughout the contract.
 
G
 
GBA
Gas Balancing Alert
 
I
 
Interruptible Supply
Gas supply which can be interrupted by supplier or customer depending on the terms of the contract and facilities on site.
 
K
 
KWh
Measurement of energy consumed - since 1992 all gas billed has been in KWh and not therms.
 
L
 
LDZ
Local Distribution Zone
 
LNG
Liquid Natural Gas
 
Load Factor
The relationship between daily average and maximum consumptions.
 
M
 
Minimum & Maximum Consumption (Take or Pay)
Percentage set by the supplier which the customer must abide to or receive additional costs.
 
Month Ahead (MA)
The next month trading price
 
MPR
Gas meter point reference number.
 
N
 
National Grid Transco
Manages the network and they maintain records of every consumer linked to the Network (excluding private networks), including shippers & consumers.
 
Network Code
The legal document, which will record the common rights and responsibilities of each of the parties to future contracts - also used to describe the regime, which is defined by the document.
 
Nominated Consumption
Total gas a site is expected to consume over a year registered at National Grid Transco.
 
Nominated Supply
A shipper will request confirmation from Transco that a site qualifies and is available for a contract placement - this process is the nomination.
 
O
 
OFGEM
The Office For Gas and Electricity Markets - the regulator of the competitive industry with power to protect and adjudicate in disputes.
 
P
 
Pipeline Capacity
The maximum capacity depending on the diameter of the pipe and the maximum pressure at which gas can be pumped along it.
 
S
 
Shipper
They buy gas from the producer, and sell it to the suppliers, employing Transco to get the gas between the two.
 
Spot Market
The ‘prompt’ physical / cash market for both gas and electricity
 
T
 
The Producer
They explore for gas, drill wells and flow gas out of the ground.  Nearly all operate offshore.
 
Therms
Consumption measurement. i.e. 1 therm = 29.3041 KWh
 
Transportation Charges
With effect from 1 October 2006 the revised charges will be:
 
  • National Transmission System (NTS) Transmission Operator Commodity Charge levied on entry flows will be increased fro 0.0079p/kWh to 0.0164p/kWh.
  • NTS Transmission Operator Exit Capacity charges will uniformly increase by a rate of 8.6%.
  • NTS System Operator Commodity Charge, as applied to both entry & exit flows, will decrease by 5.8% to 0.0114p/kWh which take into account revised forecasts.
W
 
Within Day (WD)
The days trading price.
 

Who are Ofgem?
 
 
 
.
Ofgem, the Office of Gas and Electricity Markets, is the independent regulator of the gas and electricity industries. Ofgem was formed in June 1999 by combining  the  functions of the former Office of Gas  Supply (OFGAS) and the Office of Electricity Regulation (OFFER). The body was set up by the government to protect the interests of all gas and electricity customers, and to promote competition in  the supply and regulation of the gas and electricity industries throughout Great Britain. Ofgem can be contacted on 020 7901 7000, or by post at Ofgem, 9 Millbank, London SW1P 3GE. You can also visit their website at www.ofgem.gov.uk.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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