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Frequently asked questions

Energy Terms Explained

Term
What it means
Example or explanation
Watt (W)
A measure of power — how fast electricity is being used.
A 1,000-watt appliance uses electricity faster than a 100-watt appliance. Think of watts as speed.
Kilowatt (kW)
1,000 watts. Used to describe larger electrical loads.
A 7 kW EV charger uses seven times more power than a 1 kW appliance.
Kilowatt-hour (kWh)
A measure of energy used over time. This is what you are billed for.
A 1 kW appliance running for 1 hour uses 1 kWh. A 2 kW appliance running for 30 minutes also uses 1 kWh. Think of kWh as distance travelled, not speed.
Unit of electricity
The term “unit” on your bill usually means one kWh.
If electricity costs 30 pence per unit, using 10 kWh costs £3.
Import
Electricity you buy from the grid.
Using less imported electricity reduces your bill.
Export
Electricity you send back to the grid, usually from solar.
Export may be paid at a fixed or variable rate depending on your tariff.
Peak period
Times when electricity demand is high and prices are usually higher.
Often early evening.
Off-peak period
Times when electricity demand is lower and prices are typically cheaper.
Often overnight or early morning.
Time-of-Use tariff
A tariff where electricity prices change depending on the time of day.
Prices are higher at peak times and lower during off-peak periods.
Energy optimisation
Using electricity at the most beneficial time to reduce cost or increase value.
This can include storing energy, consuming at cheaper periods, exporting at higher-value times.
Battery cycling
The process of charging and discharging a battery.
Reducing unnecessary cycling helps extend battery lifespan.
Negative pricing
A situation where suppliers pay buyers to take excess goods or energy.
Rather than charging to consume energy, the customer is paid.

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