Utility Bidder Energy Insights 2022 - Flipbook - Page 27
What do they mean?
CPIH (Consumer Pricing Index + Housing)
The most comprehensive measure of inflation. It extends CPI (Consumer Pricing Index) measure to include the costs of owning,
maintaining and living in a home – known as owners occupiers’ housing costs (OOH).
SoLR (Supplier of Last Resort)
When a supplier ceases trading, their remaining customers are assigned a Supplier of Last Resort. This supplier will provide
those customers with supply services in accordance with the terms outlined by the regulator – in the case of energy this would be
The Office of Gas and Electricity Markets, supporting the Gas and Electricity Markets Authority, is the government regulator for
the electricity and downstream natural gas markets in the United Kingdom.
LNG (Liquified Natural Gas)
LNG is natural gas cooled down to a liquid state, this process is to make the resource easier and safer to transport and store.
A hedge is an investment position when purchasing used to offset any potential losses or gains that may be incurred by a
companion investment. Essentially, hedging is a risk management strategy used to equally reduce what a supplier could lose or
gain in the wholesale energy market.
kWh and gWh
Kilowatt per hour and gigawatt per hour. This is how energy usage is measured in the UK, they represent an amount of energy to
sustain a supply for one hour.
CCA (Climate Change Agreements)
CCA’s are voluntary agreements between the UK and the Environment Agency to reduce energy use and carbon dioxide
CCL (Climate Change Levy)
The CCL is an environmental tax that is charged on the energy a business uses. It is design to encourage efficient usage of energy
and help to reduce their overall emissions.