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.

H

Heat Rate:

A measure of how efficiently an electricity generator converts thermal energy into electricity, and a key determinant of the spark spread. More precisely, the heat rate is the ratio of British thermal units of fuel consumed to kilowatt hours of electricity produced. Hence, the lower the heat rate, the higher the conversion efficiency.

Hedge:

The initiation of a position in a futures or options market that is intended as a temporary substitute for the sale or purchase of the actual commodity. For example, the sale of futures contracts in anticipation of futures sales of cash commodities as a protection against possible price declines, or the purchase of futures contracts in anticipation of futures purchases of cash commodities as a protection against the possibility of increasing costs.

Historical Volatility:

The annualised standard deviation of percentage changes in futures prices over a specific period. An indication of past market volatility.