Section 216(3) of the Insolvency Act 1986 lists the activities that a director of a company that has gone into insolvent liquidation may not undertake. 1) Re-use of a prohibited name 2) directly or indirectly being concerned or taking part in the promotion, formation, or management of any such company; or (c) directly or indirectly being concerned in the carrying on of a business otherwise than through a company under a name of the kind mentioned that uses a prohibited name. This is to prevent a phoenix company from being created.




Definition: The annual seasonal cycle that affects the price of commodity futures.


Secular Market


Definition: A market-driven by forces that could be in place for many years, causing the price of a particular investment or asset class to rise or fall over a long period of time. In a secular bull market, strong investor sentiment drives prices higher, as there are more net buyers than sellers. In a secular bear market, weak sentiment causes selling pressure over an extended period of time.


Settlement Period


Definition: For the UK network, each half-hour during the day to which the system is balanced.


Settlement Risk


Definition: The risk that arises when payments are not exchanged simultaneously.




Definition: A company that transports gas along a pipeline system. Shippers need to be registered with the local regulatory body. In the UK gas market terms, a shipper is a company that buys gas 'at the beach' and pays Transco to transport the gas along the pipeline system.


Short Position


Definition: A position where a party is holding less of a security, contract, or commodity than they need to fulfil their demand for the period in question. A party that has taken a short position would benefit from the security, contract or commodity decreasing in price.




Definition: Refers to a period of time often measured in terms of days or weeks.


Simple Moving Average


Definition: The average price paid over a pre-determined time period. A trend-following device that helps identify the prevailing market trend and changes in the trend early in the cycle. Our analysis uses:
1) 20-day Simple Moving Average: The average price over the last 20 days. This is a shorter-term average.
2) 50-day Simple Moving Average: The average price over the last 50 days. This is a medium-term average.
3) 200-day Simple Moving Average: This is the price over the last 200 days. This is a long-term average.


Site Nomination


Definition: The process by which a shipper informs National Grid Transco it wishes to supply gas to a new customer supply point.




Definition: A transaction whereby two counterparties, which do not have credit with each other, as a third party that has credit with both to be a middleman to facilitate a trade.


Slick Spread


Definition: TThe relationship between oil and power. The calculation is dependent upon time frames and oil products and rarely quoted as something that trades as a spread and is more likely to be implied using the legs.


Spark Spread


Definition: The gross margin derived by a CCGT plant in generating a unit of electricity from the acquisition of the wholesale gas required to generate this unit of electricity.




Definition: A financial action that does not promise the safety of the initial investment along with the return on the principal sum.




Definition: Surplus electricity that a generator has produced but has not contracted to provide to market counterparties.


Spinning Reserves


Definition: Any back-up energy production capacity that can be made available to a transmission system at 10 minutes’ notice and can operate continuously for at least two hours once it is brought online.


Spot Market


Definition: The price of a security or commodity in the cash market.




Definition: The difference between the bid and ask price. Liquid markets are characterised by narrow spreads.


St Fergus Gas Terminal


Definition: A set of four gas processing plants in St Fergus, Aberdeenshire, Scotland. They are owned by Centrica, Shell, Total, and Esso. This terminal is the most important one for the United Kingdom as it provides around 20% of the United Kingdom's gas supply.


Standing Charge


Definition: A charge designed to average over and recover from all customers on each tariff the elements of cost which are independent of consumption. Includes the costs associated with metering, billing, and customer services.


Storage Capacity


Definition: The amount of gas that can be stored to cover peak demand. The main types of storage (apart from pipeline storage) are:

1) Liquefied Natural Gas
2) Salt Caverns
3) Aquifers (porous rocks)
4) Depleted gas fields now converted into storage facilities.




Definition: A person authorized by a supply license to supply electricity or gas.


Supply Number


Definition: A 21-digit number assigned to an electricity meter points by MPAS under PRS. A two-tier number printed on electricity invoices preceded by an S, the top line being referred to as supplementary data and the bottom line known as the core MPAN. Also known as S Number.


Support Level


Definition: A price level where the market tends to find support when falling. The price is more likely to bounce off this level rather than breaking through it.




Definition: An agreement whereby a floating price is exchanged for a fixed price over a specified period. Also known as Contracts for Differences.




Definition: Variations in gas demand.


Swing Producer


Definition: A company or country that changes its crude oil output to meet fluctuations in market demand. Saudi Arabia is seen as the world’s major swing producer as it deliberately limits its crude oil production in an attempt to keep supply and demand roughly in balance.


System Buy Price (SBP)


Definition: The cash-out price or imbalanced price, which is used to settle the difference between contracted generation or consumption and the amount that was actually generated or consumed in each half-hour trading period.


System is Long


Definition: A system that is over-supplied.


System is Short


Definition: A system that is under-supplied.


System Sell Price (SSP)


Definition: The price paid in the Balancing Mechanism to a party that has more electricity than it requires to meet its contractual commitments. Prices are very volatile and often negative, meaning that a payment would need to be made to dispose of the unwanted electricity produced.