Backwardation

 

Definition: A market when spot prices are higher than future prices.

 

Bacton Interconnector

 

Definition: The interconnector for the transportation of gas from Bacton in Norfolk to mainland Europe via Zeebrugge in Belgium and vice versa.

 

Balance of Month (BOM)

 

Definition: The traded market for delivery for the remaining days in the month excluding the following day.

 

Balancing Mechanism

 

Definition: The mechanism by which electricity generation and demand are matched.

 

Balgzand Bacton Line (BBL)

 

Definition: The first natural gas pipeline between the Netherlands and the United Kingdom.

 

Barrels Per Day (B/D, BD, or BPD)

 

Definition: Used to express crude oil production and refinery throughput capacity (i.e. capacity of the crude distillation unit), liftings, forward demand projections, and crude consumption rates.

 

Base Load

 

Definition: Constant daily power load (24-hour) which under normal operating conditions does not vary and which is independent of the time of day or season of the year.

 

Base Load Capacity

 

Definition: The generating equipment that is operated to serve loads on an around-the-clock basis.

 

Basis

 

Definition: The differential that exists at any time between the cash (or spot) price of a given commodity and the price of the nearest futures contract for the same (or related) commodity. The basis may reflect different time periods, product forms, qualities, or locations.

 

Beach Gas

 

Definition: The point at which gas is brought ashore to terminals before entering the National Transmission System (NTS).

 

Bear Market

 

Definition: A  market when the price of an investment falls at least 20% from its high.

 

Benchmark Crude

 

Definition: A crude oil whose price is used as a reference against which other crudes are priced. The New York Mercantile Exchange (Light Sweet Crude) and IPE Brent Crude are used as global benchmarks due to their liquidity ratios. Dubai crude is widely used as a benchmark for Middle Eastern crude, especially for sale to Asian markets.

 

Bid

 

Definition: The price at which a party is willing to buy.

 

BID

 

Definition: Business Improvement District, businesses pay an additional levy or tax to help develop the area.

 

Bilateral Agreement (Trade)

 

Definition: A general agreement between two counterparties to buy or sell a contract outside a formal exchange or forward market OTC facility. With regard to energy, usually a direct contract between power producers and/or a user or broker.

 

Biogas

 

Definition: Gas produced by the breakdown of organic matter in the absence of oxygen.

 

Biomethane

 

Definition: Biogas that has been upgraded to pipeline-quality gas. It is identical in properties to natural gas, but it is not derived from fossil fuels.

 

Blackout

 

Definition: A complete interruption of power in a given service area. Rolling blackouts are controlled and usually pre-planned interruptions of service.

 

Bollinger Bands

 

Definition: An analytical tool that uses the concept of standard deviation to construct bands around the moving average, which in turn are used to create market signals.

 

Breakout

 

Definition: An upward move exceeding a previously recorded high resistance level or through a bullish trendline or some other criteria, often on high volume.

 

British Thermal Unit (BTU)

 

Definition: A standard unit for measuring the quantity of heat energy equal to the quantity of heat required to raise the temperature of 1 pound of water by 1 degree Fahrenheit.

 

BritNed

 

Definition: A high voltage direct current (HVDC) submarine power cable between the Isle of Grain in Kent, the United Kingdom, and Maasvlakte in Rotterdam, the Netherlands.

 

Brownout

 

Definition: Partial loss of power caused by unexpectedly high demand or problems with the physical delivery of electricity.

 

Bull Market

 

Definition: A market on the rise.

 

Bundled Utility Service

 

Definition: All generation, transmission, and distribution services provided by one entity for a single charge, including ancillary services and retail services.