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.

R

RCEP:

Royal Commission on Environmental Pollution.

Real-time pricing:

Up-to-date prices for commodities, moving with every purchase or sale.

Reference price:

In an energy derivatives contract, the settlement price of the contract based on a particular location or particular blend of the commodity.

Refined products:

The products derived from crude oil that has been processed in a refinery.

Refinery:

A plant where crude oil is separated into various components, such as usable products or feedstocks.

Renewable Energy:

Any form of energy that is replaced by nature, with or without human assistance, including wind, solar, geothermal and tidal energy.

REA:

Renewable Energy Association

Renewables Obligation:

An obligation on all electricity suppliers to buy a set amount of their power from renewable sources. Typically suppliers collect money from customers to enable them to meet this obligation. The money is used to purchase ROCs from renewable generators and this enables them to meet their obligation. Any shortfall of ROCs will be met by the supplier paying the Buyout ‘penalty’ to Ofgem.

Reserves:

Back-up power that must be made available at all times to meet fluctuations in system demand within a given range, to ensure smooth, continuous delivery of energy at proper voltage and current levels.

Risk Capital:

Funds at risk in a company or trading business.

Risk Management:

Control and limitation of the risks faced by an organization due to its exposure to changes, in financial market variables, such as foreign exchange and interest rates, equity and commodity prices, or counterparty creditworthiness.  It may be necessary because of the financial impact of an adverse move in the market variable (market risk); because the organization is ill-prepared to respond to such a move (operational risk); because a counterparty defaults (credit risk); or because a specific contract is not enforceable (legal risk).  Market risks are usually managed by hedging with financial instruments, although a form may also reduce risk by adjusting its business practices (see natural hedge). While financial derivatives lend themselves to this purpose, risk can also be reduced through judicious use of the underlying assets – for example, by diversifying portfolios.

Risk Measurement:

Assessment of a firm’s exposure to risk.

RO:

Renewables Order, which provides the legislative basis for the Renewables Obligation.

ROCs:

Renewables Obligation Certificates, the ‘currency’ of the RO, awarded to accredited renewable generators.