Glossary

The formal acceptance of an energy supply contract offer from a supplier ' acceptance of the offer must be in writing, but does not constitute a contract. Power Efficiency can be authorised to act on the client's behalf with respect to 'accepting' a contract offer.

The time and date by which a supply contract offer must be accepted ' failure to 'accept' will result in the offer being withdrawn.

A nuclear reactor which is cooled by carbon dioxide gas.

An agreement between National Grid Transco and a Shipper for future pipeline capacity for larger sites ' it allows Shippers to reserve capacity well in advance of the first gas flows.

An offer to supply electricity to a supply-point at a fixed price which is inclusive of delivery charges (DuOS & TuOS) - see Energy only offer.

Some meter (supply) points are supplied by more than one Supplier. An Allocation Agreement sets out how the metered gas flow will be divided between them for billing and management purposes.

An option which can be exercised at any time during its life by the purchaser - generally more expensive than European-Style options which can only be exercised at expiry.

The maximum quantity of gas measured in therms or kW which National Grid Transco estimate a supply point will use during one year ' the AQ is based upon the previous year's consumption at the same site and takes no account of any change of ownership, tenancy or use which might have taken place.

Amsterdam, Rotterdam and Antwerp ' the European pricing hub.

A purchase in one market and sale in a different market or different commodity to capitalise on what appears to be a temporary price distortion.

The simultaneous purchase of one commodity against the sale of another in order to profit from fluctuation in the usual price relationship.

Gives the buyer the right to deal at the average price of the underlying asset over the life of the option. Normally a European-Style exercises.

A futures order placed at the market, executed immediately at the price available when the order reaches the trading floor.

An option whose exercise price equals or is close to the current price in the underlying market.

Generation of electricity by companies for their own use whose main business is not electricity generation.

See Maximum Available Capacity

A charge levied each month for each unit of kVA made available by the Distribution Company.