Abbreviations on the energy market: what do they mean?

Meaning of A

The abbreviation A stands for ampere, the current strength. Just as the metre is the unit of length, the ampere is the unit of current. The definition of an ampere is very technical and is based on the magnetic field that arises around a current-carrying cable. The unit ampere can be compared with water flowing from a mountain to the sea: the more “water” passes by per second, the more amperes we count. In this respect the ampere differs from the volt (voltage). That could then be compared with the difference in height between the mountain and the sea.

Converting from A to kWh

On your energy bill you do not see the number of amperes flowing through your power lines, but you do see the number of kWh. 1 kWh is equal to the number of amperes times the number of volts times the time, divided by 1000. A device with a consumption of 1 A and a voltage of 230 V will therefore have used 0,23 kWh in one hour (1 x 230 x 1 / 1000).

Meaning of AC

AC or alternating current (wisselstroom) is the periodic electrical voltage that constantly alternates between a positive and a negative voltage. Dutch sockets, for example, supply 230 V AC. This means that the voltage (expressed in V) continuously fluctuates between + 230 V and - 230 V. The speed at which it does this is called the frequency. In the Netherlands this is 50 Hz. This means that the voltage fluctuates fifty times per second between these two extreme values.

Alternating current has the advantage that it is easier to transport. The disadvantage is that many devices run on direct current. These devices then have a transformer on or in them that converts the alternating current into direct current.

Meaning of ACM

The ACM or the Autoriteit Consument & Markt is an independent and official regulator of the Dutch market. This regulator supervises compliance with the rules relating to telecommunications, competition and consumer protection. Among other things, the ACM helps consumers with information about switching, energy companies, bills, outages and complaints. In addition, the ACM checks whether energy suppliers supply energy to consumers and businesses in a correct manner. The ACM plays an important role in the field of consumer protection on the energy market.

Meaning of ATO

The ATO (aansluit- en transportovereenkomst, connection and transport agreement) is a common abbreviation. It is an agreement that the energy supplier concludes with the end customer on behalf of the grid operator when the latter signs up as a new customer or when the existing customer moves house. This means it is not necessary to conclude a separate agreement with the grid operator, which makes the administration simpler for the end customer. In practice, the ATO is simply concluded together with the supply agreement and the customer notices little of it.

Meaning of btw

Btw is the abbreviation of belasting toegevoegde waarde (value added tax), also sometimes called turnover tax. This turnover tax is a tax payable by the end user. Entrepreneurs must charge it on behalf of the Belastingdienst.

Energy companies must calculate and collect the turnover tax for the end customer. They may not keep the money collected; they must pass it on to the Belastingdienst. In principle, the turnover tax on energy is 21%. This is also shown on the energy bill. As of 1 July 2022, the turnover tax was reduced to 9%, for a period of 6 months. It is not yet clear whether or not this measure will be extended afterwards.

Meaning of CAR or C-AR

The Centraal Aansluit Register (CAR; also sometimes called Centraal Aansluitingenregister and abbreviated as C-AR) is a centralised register containing information about all electricity connections and gas connections in the Netherlands. The register makes it easier to exchange data securely on the energy market. This allows grid operators to manage and take over connections more easily.

Meaning of CCP

The CCP association (Contract Controle Protocol) is an association set up by the recognised energy suppliers. The affiliated energy suppliers indicate that they recognise and respect each other’s contracts. In this way, breaches of contract and overlapping contracts are prevented. The affiliated energy suppliers keep a central database of current contracts. This database contains information relating to notice periods, end dates, renewal periods and the like. This allows energy suppliers to arrange the switch easily and switching penalties are prevented. Until mid-2010 this method was invariably used.

From 2013 the CER (Centraal Einde Register) was kept, containing information about current energy contracts. Since 25 January 2020 this register is no longer accessible to energy suppliers. This makes it important that customers themselves pass on the correct end date of their contract to the new energy supplier. Otherwise they risk a cancellation penalty.

CO2 or carbon dioxide is a colourless and odourless gas. It is produced, among other things, by the burning of fossil fuels and it contributes to climate change. In the future the Netherlands must become CO2-neutral. To achieve this, CO2 emissions must be limited and the remaining CO2 emissions must be offset. Many energy suppliers already supply CO2-offset gas and green electricity. Green electricity is electricity that does not come from fossil fuels and therefore has no CO2 emissions.

Meaning of COP

The COP value (Coefficient Of Performance) indicates the efficiency of a heat pump. It shows the ratio between the electrical energy consumed and the energy delivered in the home. If a heat pump has a COP value of 5, this means that it uses 1 kWh to deliver 5 kWh of heat. The higher the COP value, the more efficient the heat pump.

Meaning of DC

DC or direct current is the abbreviation for gelijkstroom. It is the counterpart of alternating current (AC). With direct current the voltage is constantly the same, for example + 12 V. The socket supplies alternating current (AC). People also sometimes speak of alternating voltage. For electronic circuits it is important that the voltage is constantly the same. That is why AC is first converted to DC by a transformer. The reason the socket does not supply direct current is that direct current is difficult to transport over a long distance. Solar panels and batteries do supply direct current. If solar panels want to feed back into the grid, the inverter must first convert this to AC. In other words, the reverse then happens.

Meaning of DT

With the dual tariff (DT), the energy rate is not constantly the same. During the day, when demand for energy is high, you pay more. At night, when demand for energy is lower, you pay less. The dual tariff encourages consumers to use energy outside peak times, for example by switching on the dishwasher and the washing machine at night instead of during the day. Due to the rise of solar panels and home batteries, the importance of the dual tariff has steadily decreased in recent years. The price difference between the peak and off-peak rates has also become ever smaller in recent years.

Meaning of EAN code

EAN is the abbreviation for European Article Number. It is a series of digits that makes it possible to identify products. On products you buy in a shop, you will find this series of digits under the barcode. Each connection in the connection register also has an EAN code. Thanks to this EAN code, the grid operator knows exactly which home and owner a connection belongs to.

Meaning of EIA

The energie-investeringsaftrek (EIA, energy investment allowance) is a deduction scheme for businesses that invest in sustainable and energy-saving business assets. This includes investments in wind energy and solar panels. It works by means of a so-called energy list that is adjusted annually. Through the energy investment allowance these entrepreneurs pay less tax, which shortens the payback period of the sustainable investment.

Meaning of EPA

The EPA or energieprestatie-advies (energy performance advice) is advice relating to the energy performance of a building. It consists of an energy label on the one hand and an advisory report on the other. The energy label gives insight into the current energy performance of the building. The advisory report gives advice regarding the options for energy-saving measures. Buyers and tenants are entitled to the energy label. Sellers or landlords who do not have a (valid) registered energy label may be fined.

Meaning of EPV

EPV (energieprestatievergoeding, energy performance fee) is an amount that the tenant must pay to the landlord for the use of the energy-efficient home, for example if solar panels have been installed on the roof of the home. The landlord may then charge an EPV fee for this. This encourages landlords to make energy-efficient investments. The tenant in turn enjoys a sustainable home and lower energy consumption, without having to make the expensive investments. The more energy-efficient the home, the higher the EPV fee may be. Every year the maximum EPV fee is adjusted for inflation.

Meaning of GvO

A GvO is a garantie van oorsprong (guarantee of origin) that is awarded when green electricity is generated. With it, an energy supplier shows how the green electricity was generated. Such GvOs are also issued in other European countries. These GvOs can moreover be traded. GvOs offer a solution to a problem: the energy you receive cannot be traced back to where the energy is generated. On the grid you find a mix of all energy fed into the grid, both grey and green energy. Anyone who buys green energy therefore receives exactly the same mix as people who buy grey energy.

By means of GvOs it is notionally possible to demonstrate the origin of the energy. This provides more transparency on the energy market and it encourages green choices. In this way an international trade in such GvOs has arisen. In the Netherlands, for example, more people take out a contract for green energy than there is green energy generated in the Netherlands. In practice, Dutch energy suppliers therefore also supply grey energy to these people, but they do import GvOs from abroad in order to then make that energy green.

Meaning of the ODE levy

The ODE levy (Opslag Duurzame Energie) is a levy introduced by the government in 2013. This levy is intended to encourage investment in sustainable energy. The levy can be found on the energy bill and is calculated on the basis of electricity and gas consumption. The levy encourages consumers to use less. The revenue from the levy is used to finance the Stimulering Duurzame Energieproductie (SDE+) scheme. The ODE levy is the successor to the former MEP levy.

Meaning of kWh

Many people do not know what kWh means, but it is actually not that difficult. The abbreviation kWh stands for kilowatt hour, a unit of work. If you let a device with a power of 1 kW run for an hour, you have used 1 kWh. In the Netherlands an average household uses about 2479 kWh of electricity (figures: Milieu Centraal).

Calculating with kWh

1 kWh is how many watts per hour? A thousand. In other words, 1 kWh is equal to 1000 Wh. You use a 2000-watt device for half an hour: how many kWh is that? It is 1 kWh. Conversely, we can also convert mWh to kWh (megawatt hours to kilowatt hours). 1 mWh is equal to 1 million Wh or 1000 kWh.

How much is 1 kWh in euros? Based on your consumption in kWh, you can calculate how much you have to pay the energy supplier. What does 1 kWh cost at Essent? At the time of writing it is 0,425440 euros per kWh. On top of that come all kinds of additional taxes and surcharges. There are also fixed costs that increase the annual bill.

What is a watt (W)?

1 kWh is equal to 1000 watts per hour. But what is a watt? 1 watt is 1 joule per second, where the joule is the standard unit for various kinds of energy. If a vacuum cleaner has a power of 1 kW, it therefore uses 1000 joules of energy every second. The joule is the energy needed to move a body with a force of 1 newton over a distance of one metre. Put simply: 1 joule is the energy needed to lift a small apple weighing 102 grams one metre on our planet. Because 1 J is equal to 1 Ws, a kWh is in other words equal to 3.600.000 J or 3,6 MJ (megajoules).

Meaning of MIA

The MIA or the milieu-investeringsaftrek (environmental investment allowance) gives entrepreneurs the opportunity to reduce their taxable profit by up to 45% of the investment amount. Only investments in environmentally friendly business assets qualify. Through the MIA the government encourages businesses to make more environmentally friendly choices.

Meaning of PV

PV is the abbreviation for photo (light) voltaic (electricity). People sometimes talk about PV panels, an alternative name for solar panels. These are panels that capture sunlight and convert it into electrical current. Solar panels can convert both direct sunlight and diffuse light into energy. This means they also work when it is cloudy. PV panels always convert sunlight into electrical energy and should not be confused with solar water heaters, which are used for domestic hot water.

Meaning of SDE++

The SDE++ or the Stimulering Duurzame Energieproductie en Klimaattransitie is a set of subsidies for businesses and non-profit organisations. These subsidies can be used for large-scale investments in sustainable energy, for example for investments in building a large solar park.

Meaning of SJV

The standaard jaarverbruik (SJV, standard annual consumption) is the expected annual consumption of a customer on a grid connection. In other words, it is an estimate of consumption. This is based on data about actual consumption. The actual consumption is corrected in the process. If it was an abnormally cold year, actual consumption will be higher than in a normal year. When calculating the SJV, this difference is adjusted for, so that the estimated consumption in a normal year is shown. In the case of an abnormally warm winter, the reverse is done. As a result, the SJV differs in practice from actual consumption. The SJV is important, among other things, for determining which capacity tariff you fall into.

Meaning of VAMIL

VAMIL or willekeurige afschrijvingen milieu-investeringen (arbitrary depreciation of environmental investments) is a tax advantage for businesses that invest in environmentally friendly business assets. It allows entrepreneurs, contrary to the classic accounting rules, to depreciate sustainable investments more quickly. On balance this yields no profit, but it does yield a liquidity advantage. This makes investments in environmentally friendly business assets more attractive.

Meaning of VAMIL

VAMIL or willekeurige afschrijvingen milieu-investeringen (arbitrary depreciation of environmental investments) is a tax advantage for businesses that invest in environmentally friendly business assets. It allows entrepreneurs, contrary to the classic accounting rules, to depreciate sustainable investments more quickly. On balance this yields no profit, but it does yield a liquidity advantage. This makes investments in environmentally friendly business assets more attractive.

Meaning of WKK

WKK is the abbreviation for warmtekrachtkoppeling (combined heat and power). Here, heat and power (electricity) are generated simultaneously. The heat is used to drive a generator that generates energy. The released heat is not lost, but is used, for example, to heat greenhouses.

01List of abbreviations on the energy market

From A (ampere) to WKK (combined heat and power): the alphabetical list of abbreviations on the energy market is enormously long. As a result, consumers do not always know exactly what energy suppliers are talking about. Even on the energy bill all kinds of abbreviations can be found, often without any clarification. We provide clarity and explain the most important abbreviations on the energy market.

02Frequently asked questions about abbreviations in the energy market

On the energy market, abbreviations are used eagerly. Above, we have explained the commonly used energy abbreviations. If you still have questions about the use of abbreviations on the energy market or about one of the energy abbreviations above, we recommend reading through the list of frequently asked questions below.

Abbreviations have the advantage of being concise. With a single abbreviation you can refer to a complex concept or a long name. The problem with abbreviations, however, is that they are not always understandable to outsiders. That is why on this website we limit the use of abbreviations or often give the meaning first when using abbreviations. The list of abbreviations and meanings above should also provide clarity.

Why do we use abbreviations?

If you choose the single tariff, you pay more than the off-peak rate, but less than the normal rate. This makes the single tariff particularly attractive if you mainly use electricity on working days and during the day. Where the tipping point lies depends on the difference between the three rates. Usually, once you use more than 50% of your electricity during off-peak hours, the dual tariff becomes more attractive.

Which is more attractive: the single tariff or the dual tariff (DT)?

1000 watts per hour corresponds to 1 kWh. Energy suppliers always state their rates per kWh. These rates change constantly, which makes it difficult to say what 1000 watts per hour currently costs. Via this website, however, you can compare energy rates. You quickly and easily find out what 1000 watts per hour costs.

What does 1000 watts per hour cost?

The watt is an SI unit of power and is named after the engineer James Watt, an engineer from Greenock in Scotland. James Watt is the inventor of the modern steam engine and the first copying machine. He introduced horsepower (hp) as a unit of power. Only later was the new unit of power (watt) named after him.

Where does the watt come from?

The watt is used as a unit of power. This is not only about electrical power. Power is in fact a form of joules per second, where the joule can be traced back to work and force. This means that, for example, the power of a cyclist can also be expressed in watts. An ordinary amateur cyclist pedals a wattage of about 175 to 200 watts. Professional cyclists easily pedal up to 350 watts over an entire race.

What wattage does a cyclist pedal?

Abbreviations on the energy market → discover the meaning

People often use abbreviations on the energy market. What do they mean? → Check the list of abbreviations from EnergieAanbieding.nl and find out!