FAQ’s and Glossary

Made Simple…

Optimum Energy Group aims to simply utilities and help you navigate the complexity. 

Questions and Answers about Energy, the Optimum Way

What is a MOP Contract?

A Meter Operator agreement or (MOP contract) is a legal requirement for all half-hourly electrical meters. These contracts cover the supply of the meter, their maintenance and the necessary network connection for sending your consumption data to your energy supplier.

What is Available Capacity?

Occasionally called Availability. This is the physical capacity of the electricity supply into the building. Your electricity distributor will charge for the amount of capacity that is made available to you.

What does AMR mean?

This stands for Automatic Meter Reading. These readings are automatically taken from Smart Meters and provide you with instant and accurate data relating to your commercial energy consumption.

What is CCL on my bill?

This is Climate Change Levy (CCL). It’s an environmental tax energy tax and has been in place since 2001. It was introduced to help lower and manage greenhouse gasses. The Levy is calculated using the main rates and the carbon price support rates. The main rates of the CCL apply to electricity, gas and even solid fuels as you’ll notice on your bill. 

The reason the CCL varies is hows it’s calculated. The CCL depends on your business sector, industrial, commercial or public services. How much you pay in CCL charges depends on which sector your business is in, whether that’s industrial, commercial or public services. However, very low users and charities are exempt. 

Also worth noting that Energy intensive businesses are recommended to enter into a climate change agreement with the Environment Agency, this is to get a reduction on CCL rates.

What is REC?

Regional Electricity Company (REC) is the name given to the electricity distribution company that controls the supply network in a particular region.

What is green energy?

Green Energy is the general term for electricity that has been generated in a sustainable way. Typically, this is electricity that has been created from wind, solar and hydropower which are also classed as renewable energy. 

Does Green Energy cost more?

As you’d expect, yes, but only slightly. There is a cost offset from the Climate Change Levy (CCL). This means the true cost of Green energy becomes very close to regular energy. Sometimes, know as brown energy.

What are deemed & out of contract rates?

If you are comparing prices for your energy, you may be asked if you are on “deemed contract rates” or “out of contract rates”.

The term “deemed” contract rates apply when a customer moves onto an existing supply because they’ve moved premises for example. The customer won’t be in contract with the existing supplier. These are referred to as deemed rates because the consumer is deemed to have taken out a contract with the existing provider.

Out of contract rates are more simple to understand. They refer to when a customer goes past the contract end date and has not agreed or accepted the renewal prices from the supplier. When this happens the supplier charges out of contract rates. (Variable Tariff)

In both cases deemed and out-of-contract rates are typically more expensive than fixed contract pricing. We always work hard with our client to ensure they minimise the time spent on these.

What is an MPAN?

A Meter Point Administration Number (MPAN). This is sometimes referred to as a Supplier Number or S Number and is the unique number found on a business electricity bill, as acts as the code for meters. No 2 MPAN’s are the same. The first two digits in the number display the meter profile – 03 or 04 for a small business, 05 to 08 for maximum demand users and 00 for Half-Hourly.

What is an MPR?

Meter Point Reference (MPR)
A unique number used to identify a commercial gas supply. These are found on a bill and are ten digits long.

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