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Far Curve

Relates to the portion of the forward curve starting at the beginning of the front season.
 

Feed-in-Tariff (FIT)  

This is a payment made to households or businesses generating their own electricity through the use of low carbon or renewable methods. It was introduced to encourage the uptake of small-scale renewable energy.
 

Fixed Charge 

This is a daily, monthly or quarterly charge levied by the supplier and is in addition to the standing charge.
 

Fixed Contracts 

This involves securing a fixed price per unit for the duration of the contract, irrespective of what happens in the energy market. In other words organisations will pay the same amount for every unit of energy they use, even if the supplier increases or decreases its prices. Some organisations prefer this approach as it offers greater budget forecasting and security.
 

Flexible Contract

This involves purchasing wholesale energy in smaller chunks, throughout the length of the contract, allowing organisations to choose how much and when they buy energy. Some organisations prefer this option as it allows them to react to favourable market conditions.   
 

Forecast Demand

The estimated energy demand over a specified future period.
 

Front Season

Gas or electricity for delivery in the first calendar season that occurs in the future, i.e. winter or summer.
 

Forward Curve

This refers to a series of sequential prices for the future delivery of energy.
 

Forward Price

The price today for the delivery of a commodity to a specific location on a specified date in the future. These are often plotted on a graph and used to demonstrate market sentiment. 
As we all know knowledge is power, especially within our industry. If you want to know more about any terms covered, please get in touch on 0800 61 22 200 or email us at hello@esaveuk.com  

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