An electronic exchange that launched electricity futures in June 2000. Trading includes spot physical electricity contracts, prompt power contracts and cleared forward contracts, and is open to companies active in the UK power market. In 2003 it has been bought by APX Group, the energy exchange for gas and power.

   gas lost through leakage or errors in measurement.

   the separating of the various components of electricity production, supply and service, in order to introduce greater elements of competition to these segments of the industry. ‘Functional unbundling’ would require monopolistic utilities to provide access to their transmission and distribution network in exchange for an access fee. ‘Structural unbundling’ would require complete vertical disaggregation, so that monopolistic utilities would be required to divest either their generation assets or their transmission/distribution assets.

   the variable on which a futures, option or other derivatives contract is based.

   a short forward position taken without an offsetting long physical position in the underlying commodity is said to have upside risk. This means the trader is speculating that the price of the commodity will decline. A long forward position taken without an offsetting short physical position in the underlying commodity is said to have downside risk. This means the trader is speculating that the price of the commodity will increase.

   oil and gas exploration and production, as opposed to downstream, which refers to the areas of refining and marketing. see also downstream