electricity

electricity

ELN - The Daily Market Report - 26th May 2015

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Energy Live News brings you The Daily Market Report provided by npower. The npower Optimisation Desk team use technical terms when they are presenting the latest energy market news. For clarification of any terms, please check below. If you’d like to know more about our Energy Market services, please contact the team: optimisation.desk.team@npower.com. All electricity volumes are expressed in MW and all prices are expressed in £/MWh. All gas volumes are expressed in pence therm. Prompt Market Gas or electricity for delivery within the current calendar month. Gas includes Within Day, Day Ahead, Weekend and BOM contracts. Electricity includes the Day Ahead and Week Ahead contracts. Very Prompt Market Gas or electricity for delivery for the early part of the remainder of the current month. Incorporates the Within Day, Day Ahead and Weekend contracts. Spot Market The Within Day contract i.e. gas or electricity for delivery within the current trading day. Front Month Gas or electricity for delivery in the first calendar month that occurs in the future. Also known as Prompt Month. Front Quarter Gas or electricity for delivery in the first calendar quarter that occurs in the future. Also known as Prompt Quarter. Front Season Gas or electricity for delivery in the first calendar season that occurs in the future. Also known as Prompt Season. Forward Curve Relates to the period starting from the front month. Near Curve Relates to the period of the forward curve running from the front month to the beginning of the front season. Far Curve Relates to the portion of the forward curve starting at the beginning of the front season. BOM Balance of Month - relates to gas or electricity for delivery in the remainder of the current calendar month. System Margin The difference between demand and supply. Otherwise referred to as the system being long or short. Bullish Sentiment Where market conditions suggest that prices are likely to rise. Bearish Sentiment Where market conditions suggest that prices are likely to fall. Rangebound Where market conditions support neither a rise or fall in prices, therefore they stay at a similar level. Market Fundamentals Factors that principally drive the market sentiment, i.e. demand, costs, outages, power stack, etc. Volatility Measure of fluctuation in a relevant market price, calculated from the last twenty published prices for that contract. Value-at-Risk (VAR) The worst loss expected to be suffered over a given period of time with a given probability. The time period is known as the holding period, and the probability is known as the confidence interval. VAR is not an estimate of the worst possible loss, but the largest likely loss. Mark-to-Market A calculation of the value of a financial instrument (or portfolio of such instruments) at current market rates or prices of the underlying. Marking-to-market on a frequent basis is often recommended in risk management guidelines. Electricity only terms: Baseload Delivery of the same amount of electricity in each half hour period of each day in the contract. Peak Delivery of the same amount of electricity in each half hour period between the times of 07:00 - 19:00 on each weekday in the delivery period. DA LEBA Daily indices compiled by LEBA (London Energy Brokers Association). The Day Ahead Index is calculated using a volume-based, weighted average of all Day Ahead baseload trades executed in London by contributing brokers between 0700hrs and 0900hrs each day. Gas only terms: NBP National Balancing Point - A notional point in the UK national transmission system used as a delivery point for gas that is traded. For accounting and balancing purposes, all gas is said to flow through this point. DA SPECTRON The index is expressed in pence per therm (one therm = 100,000 British thermal units = 29.3071 kWh) at the British National Balancing Point (NBP). The index comprises all transactions executed through Spectron’s phone and internet-bas...