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British Energy ComplianceUTILITIES · ADVISORY · ASSURANCE
AQ

Annual Quantity

The estimated annual gas consumption (or electricity equivalent on NHH) used to price contracts, allocate profile classes and calibrate settlement.

Annual Quantity (AQ) is the estimated annual gas consumption of a non-domestic gas supply, derived from historical metered use and used by suppliers, transporters and the gas industry settlement system to size contracts, allocate transportation charges and run reconciliation. The equivalent figure for non-half-hourly electricity supplies is the EAC (Estimated Annual Consumption).

For gas:

  • AQ is recalculated annually based on actual metered use over the preceding year.
  • AQ determines the supply's end-user category for transportation charging — small (below 73,200 kWh), medium, large and very large, each with different unit rates and charge structures.
  • An AQ that materially over- or under-states actual use produces either a defensively priced contract or mid-contract reconciliation charges.

For procurement, taking accurate meter reads before tendering — and ensuring the AQ reflects the realistic consumption profile of the site as it is now (not as it was three years ago, before a refurbishment or a change of operator) — is one of the most underappreciated steps in getting a competitive contract.

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