Like many industries, the energy industry has developed an language all of it's own. Brokers and suppliers talk about Duos Charges and Triads and avialabiity, but what to they actually mean?

We've put together what we think is the most complete glossary of energy terms on the net, if you can't find what you're looking for here give us a call and we'll see if we can help you.

F

FAA:

Funds Administration Agent.

Firm contract:

A contract that guarantees delivery with no provision for force majeure.

Firm (Uninterrupted):

Natural gas for which the full price has been paid on the understanding it will be delivered continually through the contract period.

Flat position:

A position where there is no exposure to the market. Floor

  1. The main trading area of an exchange.

2) A supply contract between a buyer and seller of a commodity, whereby the seller is assured that it will receive at least some minimum price. This type of contract is analogous to a put option which gives the holder the right to sell the underlying at a predetermined price.

 

 

Force Majeure:

A contract clause which allows the supplier to forego his obligation to supply in extreme circumstances such as a political crisis, war, strikes which disturb production, etc. It also applies to a purchaser who is unable to take delivery of product – e.g. a refiner whose refinery is shut down following a fire or disaster.

Forward Price Curve:

A projection of the future price of a commodity or financial instrument over time, usually based on actual transactions.

Forward Rate Agreement:

An agreement between two parties to exchange a rate differential during a predetermined time period, based on an agreed future rate during that period.

FPN:

Final Physical Notification. A minute by minute profile of the expected power output or consumption of generation or demand across each half hour period. the FPN is specified to the nearest MW. This must be submitted to the System Operator before Gate Closure.

Front office:

The term used to describe the trading floor and its members (traders and analysts).

Futures contract:

An exchange-traded supply contract between a buyer and a seller, whereby the buyer is obligated to take delivery of a fixed amount of a commodity at a predetermined price at a specified location. Futures contracts are traded exclusively on regulated exchanges are settled daily based on their current value in the market.