Annual report glossary

Availability
Brownfield site
CHP Combined heat and power plant
CSR Corporate Social Responsibility
Deep repository
Deregulation
Derivative instruments
DSO Distribution System Operator
EEX European Energy Exchange
Electricity spot market
EPD Environmental Product Declaration
EU 27
Ex–ante tariff regulation
Ex–post tariff regulation
Forward market
Green Certificates/electricity certificates
Greenfield site
ISO 14001
Kyoto Protocol
Legal unbundling
Local network
Merit order
Nord Pool
NOX
OTC Over the Counter
PolPX
PSE Polskie Sieci Elektroenergetyczne
Regulator
Renewable energy sources
Replacement power
RTPA Regulated Third Party Access
Retailer
Shared power
SKB Svensk Kärnbränslehantering AB
SO2
Spot market
Thermal power
TSO Transmission System Operator
Unbundling
Value chain
Volatility

A

Availability

Actual electricity generation capability in relation to the maximum possible generation.
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B

Brownfield site

Land or premises which has previously been used or developed and where certain infrastructure may exist.
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C

CHP Combined heat and power plant

A plant that generates heat and electricity in the same process.

CSR Corporate Social Responsibility

A concept whereby companies integrate economic, social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis.
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D

Deep repository

Underground facility for the fi nal disposal of spent nuclear fuel. See also SKB’s website http://www.skb.se.

Deregulation

Abolishing monopoly rights and obligations to open up for competition. Used here as a synonym for liberalisation.

Derivative instruments

Financial instruments where the value or change in value is derived from an underlying instrument. Examples of derivative instruments include options, forwards and swaps. Derivative instruments are often used in risk management.

DSO Distribution System Operator

Responsible for operating, ensuring the maintenance of and developing the distribution system in a given area (compare with TSO).
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E

EEX European Energy Exchange

The German electricity exchange. Head offi ce in Leipzig.

Electricity spot market

Short–term physical trading in electricity on an exchange.

EPD Environmental Product Declaration

A system based on Type III declarations.

EU 27

The 27 Member States constituting the European Union following the latest enlargement on 1 January 2007.

Ex–ante tariff regulation

The approval of tariffs prior to implementation.

Ex–post tariff regulation

Tariffs are examined by the regulator after implementation.
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F

Forward market

A market in which buyers and sellers agree on a fixed price for the future delivery of an underlying instrument, such as electricity. (See also Derivative Instruments.)
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G

Green Certificates/electricity certificates

Tradeable certifi cates issued for renewable energy. Called electricity certifi cates in Sweden.

Greenfield site

A site or project location where no infrastructure exists. ISDA agreement A bilateral general agreement prepared in accordance with guidelines established by the International Swap Dealers Association. The agreement regulates the parties’ legal obligations in derivative.
transactions with each other.
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I

ISO 14001

International standard for environmental management systems.
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K

Kyoto Protocol

International agreement to reduce greenhouse gas emissions.
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L

Legal unbundling

Legal separation of transmission and distribution from other activities (generation/sales).

Local network

An electricity network in Sweden within the 0.4—20 kV range.
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M

Major disruption

Extensive disruptions in electricity network operations which result in many customers lacking electricity.

Merit order

The order in which capacity is put into use.
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N

Nord Pool

The Nordic electricity exchange.

NOX

A general term for various oxides of nitrogen.
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O

OTC Over the Counter

Trading (directly or via a broker) outside the official exchanges in physical and financial contracts.
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P

PolPX

The Polish electricity exchange, Towarowa Gielda Energii.

PSE Polskie Sieci Elektroenergetyczne

Polish Power Grid Company. Regional network An electricity network in Sweden within the 40—130 kV range.
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R

Regulator

The legal authority that supervises the market to ensure effective competition and fair pricing.

Renewable energy sources

Non–fi nite energy sources such as hydro power, biofuel, wind, solar power, tidal power, wave power, geothermal power.

Replacement power

Replacement delivery, in accordance with a riparian court decision, to the owner of another power station on the same river.

RTPA Regulated Third Party Access

Access to the network is provided based on published and regulated tariffs for the use of the network.

Retailer

Firm at the end of the distribution chain, which normally buys a product from a wholesaler in order to sell it to the end consumer.
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S

Shared power

Several parties have the right to electricity from a particular power plant.

SKB Svensk Kärnbränslehantering AB

The party responsible for managing radioactive waste in Sweden.

SO2

Sulphur dioxide.

Spot market

A market where trade is conducted with immediate delivery. Swap A fi nancial instrument that is a combination of spot and forward transactions, a type of fi nancial exchange agreement.
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T

Thermal power

Electricity generated via a heating process, such as a gas turbine or a steam process in a coal–fi red or nuclear power plant (compare with CHP).

TSO Transmission System Operator

Responsible for operating, ensuring the maintenance of and developing the transmission system in a given area (compare with DSO).
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U

Unbundling

Separation of the transmission/distribution system interests from the other interests of a company.
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V

Value chain

Process for creating value. Within the electricity sector this includes the generation, transmission, distribution, trading and selling of electricity.

Volatility

A measure of the extent to which the price of a commodity varies over a particular period.
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