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Free Simple Glossary of Energy Trading terms
For more detailed explanations try the Detailed Glossary
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Take or Pay | ||
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A type of supply contract in which the buyer commits to buying a minimum quantity of some product, or to make an alternative payment for the amount below the minimum quantity Take or Pay contracts are widely used in the Gas and Oil markets For much more information please refer to the Detailed Glossary | ||
Swing Contract | ||
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Also known as a swing option, a swing contract is a type of contract that allows the buyer the option, but not the obligation, to take periodic deliveries of a product at a volume nominated by them between a minimum and a maximum volume at an agreed price For much more information please refer to the Detailed Glossary | ||
Entry Capacity | ||
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Capacity to flow (usually gas) onto a National Transmission System For much more information please refer to the Detailed Glossary | ||
Cascading | ||
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The process of decomposing longer tenor Exchange traded derivatives (futures and swaps) contracts for the equivalent shorter contracts For much more information please refer to the Detailed Glossary | ||
Close out | ||
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Flattening an open position to a net zero (or flat) position For much more information please refer to the Detailed Glossary | ||
Tolling Agreement | ||
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A general term used to describe an agreement in which one party (the toller) provides an input product to the other party, and the other party provides another product (usually derived from the input product) in return For much more information please refer to the Detailed Glossary | ||
Line Loss | ||
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When transmitting Electricity via Interconnector, some of the power is lost and that's called Line Loss. For UK-FR interconnector line loss factor is 1.17% For much more information please refer to the Detailed Glossary | ||
Scheduling | ||
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Often used as a term for the Operational activities involved in gas and power For much more information please refer to the Detailed Glossary | ||
Novation | ||
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A generic legal term for transferring existing contracts from one legal entity to another For much more information please refer to the Detailed Glossary | ||
Virtual | ||
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Something that behaves like something else but is not really that thing For much more information please refer to the Detailed Glossary | ||