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 availability, 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.

A

ACCMO:

Association of Coalmine Methane Operators.

Aggregator:

A company that consolidates the energy requirements of a number of buyers and/or/ sellers in order to buy or sell power in bulk

Alarms:

Warnings of plant systems nearing trip parameters

Ampere:

The unit of measurement of electrical current produced in a circuit by 1 volt acting/ through a resistance of 1 Ohm

Amsterdam Power Exchange:

The Amsterdam Power Exchange launched a day-ahead spot market for Dutch electricity in May 1999. It publishes a daily index of all trading volumes

Ancillary services:

Services that ensure reliability and support the transmission of electricity from generation sites to customer loads. Such services may include: load regulation, spinning reserve, non-spinning reserve, replacement reserve, and voltage support

Annual Contract Quantity:

The amount of gas specified in a buyer’s nomination purchase contract for one year.  Some rights, such as make-up gas and take-or-pay, may need to be taken into account depending on the amount of gas taken versus the amount contracted for

API:

American Petroleum Institute, a trade association

API gravity:

One of the main quality indicators for pricing crude oil – the higher the API gravity, the lighter the crude oil. It is calculated as follows: Degrees API = (141.5 / sp.gr.60 deg.F/60 deg.F) - 131.5

APX:

Automated Power Exchange.

ARA:

Amsterdam – Rotterdam - Antwerp

Arbitrage:

The difference in price of a given commodity either in the same location or in different geographical locations. Grade arbitrage is trading the difference in the price of a commodity in the same location – e.g., the difference in the prices of two sweet crudes in northwest Europe. Geographical arbitrage is trading the difference in the price of the same grade on difference locations. Often grade and geographical arbitrage are combined – eg, in transatlantic arbitrage which is trading the price difference between, for example, Brent crude in Europe and West Texas Intermediate in the US this calculation will include the cost-of-carry as well as the cost of the alternative crude in the US.

Asian Option:

Asian (for average) options have payoff that depend on an average price for the underlying commodity over a period of time, rather than on the price of the commodity on a single date. The averaging period may correspond to the entire life of the option or may be shorter.

At the beach:

When gas has been brought ashore to a terminus by producers but is not yet in the National Transmission system, the gas is called at the beach.

AT-Link:

System used for gas trade nominations.

At-The-Money

  1. At-the-money spot – an option whose strike is the same as the prevailing market price of the underlying rate or price.
  2. At-the-money forward – an option whose strike is at the same level as the prevailing market price of the underlying forward contract.

Availability:

The percentage of the time that electricity generating plant is available to produce electricity. Also see capacity factor.

Average delivered price:

The weighted average of all contract price commitments and market price settlements in a delivery year.