M&C Energy Group Glossary |
Find here terms and their explanations commonly used in Energy Industry, Finance and Trading Boards
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| There are 35 entries in the glossary. |
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| Dark Clean Spread | The theoretical gross profit of a coal fired power plant from selling a unit of power and having purchased fuel required to generate this unit of power along with required number of carbon allowances.
Clean Dark Spread = Dark Spread – Number of Carbon Allowances Required × Price of Carbon Allowance
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| Dark Spread | The theoretical gross profit of a coal fired power plant from selling a unit of power and having purchased fuel required to generate this unit of power along with required number of carbon allowances.
Clean Dark Spread = Dark Spread – Number of Carbon Allowances Required × Price of Carbon Allowance
See also:
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| Data Aggregator | The organisation appointed to aggregate the meter-reading data received from the appointed Data Collectors and forward it to suppliers. |
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| Data Collector | The organisation responsible for collecting, processing and validating the meter reading data, who then passes the information to the Data Aggregator. |
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| Day Trade | The purchase and sale of a futures or an options contract on the same day. Dealer Tank Wagon Price (DTW) The price, usually of gasoline, offered by the majors which is branded and delivered to the service station on a cost, insurance, and freight basis. |
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| De-energisation | The interruption of supply, so that electricity cannot flow from the network to the premises. |
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| DEFRA | Department for Environment, Food and Rural Affairs. |
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| Degree Day | A measure of the coldness of the weather (heating degree day) or its heat (cooling degree day) based on the extent to which the daily mean temperature falls below or rises above 65 degrees Fahrenheit. |
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| Dekatherm | Ten therms, 1 million British thermal units. |
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| Delivered | Often regarded as synonymous with cost, insurance, and freight in the international cargo trade, its terms differ from the latter in a number of ways. Generally, the seller's risks are greater in a delivered transaction because the buyer pays on the basis of landed quality/quantity. Risk and title are borne by the seller until such time as the commodity, such as oil, passes from shipboard into the connecting flange of the buyer's shore installation. The seller is responsible for clearance through customs and payment of all duties. Any in-transit contamination or loss of cargo is the seller's liability. In delivered transactions, the buyer pays only for the quantity of oil actually received in storage. |
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| Delivery | The term has distinct meaning when used in connection with futures contracts. Delivery generally refers to the changing of ownership or control of a commodity under specific terms and procedures established by the exchange upon which the contract is traded. Typically, except for energy, the commodity must be placed in an approved warehouse, precious metals depository, or other storage facility, and be inspected by approved personnel, after which the facility issues a warehouse receipt, shipping certificate, demand certificate, or due bill, which becomes a transferable delivery instrument. Delivery of the instrument usually is preceded by a notice of intention to deliver. After receipt of the delivery instrument, the new owner typically can take possession of the physical commodity, can deliver the delivery instrument into the futures market in satisfaction of a short position, or can sell the delivery instrument to another market participant who can use it for delivery into the futures market in satisfaction of his short position or for cash, or can take delivery of the physical himself. The procedure differs for energy contracts. Bona fide buyers or sellers of the underlying energy commodity can stand for delivery. If a buyer or seller stands for delivery, the contract is held through the termination of trading. The buyer and seller each file a notice of intent to make or take delivery with their respective clearing members who file them with the Exchange. Buyers and sellers are randomly matched by the Exchange. The delivery payment is based on the contract's final settlement price. |
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| Delivery Month | The month specified in a given futures contract for delivery of the actual physical spot or cash commodity. |
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| Delivery Notice | A notice presented through an exchange's clearinghouse by a clearing member announcing the intention to deliver the actual commodity in satisfaction of a contract obligation. |
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| Delivery Point(s) | Location(s) designated by an exchange at which delivery may be made in fulfillment of contract terms. |
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| Delta | The sensitivity of an option's value to a change in the price of the underlying futures contract, also referred to as an option's futures-equivalent position. Deltas are positive for calls, and negative for puts. Deltas of deep in-the-money options are approximately equal to one; deltas of at-the-money options are 0.5; and deltas of deep out-of-the-money options approach zero. |
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| Delta Neutral Spread | A spread where the total delta position on the long side and the total delta on the short side add up to approximately zero. |
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| Demand | The requirement for power. |
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| Demand Site Management | The planning, implementation, and monitoring of activities designed to encourage consumers to modify patterns of electricity usage, including the timing and level of electricity demand. |
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| Depository or Warehouse Receipt | A document issued by a bank or warehouse indicating ownership of a commodity stored in a bank depository or warehouse. In the case of many commodities deliverable against futures contracts, transfer of ownership of an appropriate depository receipt may effect contract delivery. |
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| Derivative | Financial instrument derived from a cash market commodity, futures contract, or other financial instrument. Derivatives can be traded on regulated exchange markets or over-the-counter. For example, futures contracts are derivatives of physical commodities, options on futures are derivatives of futures contracts. |
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| Diesel Fuel | Distillate fuel oil used in compression-ignition engines. It is similar to home heating oil, but must meet a cetane number specification of 40 or more. |
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| Differentials | Price differences between classes, grades, and locations of different stocks of the same commodity. |
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| Dirty Cargo | Those petroleum products which leave significant amounts of residue in tanks. Generally applies to crude oil and residual fuel oil. |
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| Disconnection | The permanent removal of the meter, cabling and service from the property once it is established that a supply will not be required in the future. This permanently removes the MPAN. |
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| Discount | 1) A downward adjustment in price allowed for delivery of stocks of a commodity of lesser than contract grade against a futures contract. 2) Sometimes used to refer to the price differences between futures of different delivery months. |
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| Discretionary Account | An arrangement by which the holder of an account gives written power of attorney to someone else, often a broker, to buy and sell without prior approval of the account holder. Often referred to as a "managed account." |
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| Distillate Fuel Oil | Products of refinery distillation sometimes referred to as middle distillates; kerosene, diesel fuel, and home heating oil. |
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| Distribution System | The local wires, transformers, substations and other equipment used to distribute and deliver energy to consumers. |
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| Doctor Test | A qualitative method of detecting undesirable sulfur compounds in petroleum distillates; that is, determining whether an oil is sour or sweet. |
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| Double Bottoms | A chart pattern of the price movement of a commodity that shows resistance to a falling market; the inverse of double tops. The price patterns are used by technical analysts to recognize a reversal of a price trend. |
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| Double Tops | A chart pattern of commodity price movements that depict a rising market which hits resistance at a certain level, retreats, rises again, but still cannot breach the previous resistance point, and falls back again. The price patterns are used by technical analysts to recognize a reversal of a price trend. |
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| Downstream | An industry term referring to commercial oil and gas operations beyond the production phase; oil refining and marketing, and natural gas transmission and distribution. |
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| DPEI | Department of Productivity, Energy and Industry, formerly known as the Department of Trade and Industry. |
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| Dry Gas | Gas that does not contain liquid hydro-carbons. |
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| DUoS (Distribution Use of System) | The charges incurred for distributing electricity across the local area system to the supplied premises. |
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Glossary V2.0 |
