Glossary June 2010

English-Russian Energy Sector Glossary
English-Russian
Energy
Sector
-
ERRA/
Glossary
A ....................................................................................................................................................... 2
B ..................................................................................................................................................... 10
C ..................................................................................................................................................... 14
D ..................................................................................................................................................... 29
E ..................................................................................................................................................... 41
F ...................................................................................................................................................... 55
G ..................................................................................................................................................... 58
H ..................................................................................................................................................... 62
I....................................................................................................................................................... 64
J ...................................................................................................................................................... 70
K ..................................................................................................................................................... 71
L ..................................................................................................................................................... 72
M .................................................................................................................................................... 77
N ..................................................................................................................................................... 83
O ..................................................................................................................................................... 91
P ...................................................................................................................................................... 94
Q ................................................................................................................................................... 104
R ................................................................................................................................................... 105
S .................................................................................................................................................... 118
T ................................................................................................................................................... 126
U ................................................................................................................................................... 134
V ................................................................................................................................................... 137
W .................................................................................................................................................. 140
Y ................................................................................................................................................... 141
Z ................................................................................................................................................... 141
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A
Abandonment pressure: The reservoir pressure when production from a well is abandoned for
technical or economic conditions.
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.
Absolute open-flow potential: Theoretical flow rate of gas if atmospheric pressure is assumed int
he borehole at reservoir level.
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Access (Connection) Charge: A charge levied on a power supplied, or its customer, for access
to a utility's transmission or distribution system. It is a charge for the right to send electricity over
another's wires.
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Accelerated depreciation: A method of depreciation under which the allocation of the cost of
the asset to accounting periods is higher in the earlier periods than in the later ones.
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Accounts payable: In accounting terms represents an entitys obligation to pay off a short-term
debt to its creditors. This item appears on the companys balance sheet as a current liability
because the obligation is generally due within 12 months from the initial transaction date. When
accounts payable are paid off it represents a negative cash flow for the company.
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Accounts receivable: In accounting terms represents the money owed by customers to another
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entity in exchange for goods and services, therefore is a legal obligation for the customer to remit
cash for its short-term debts (i.e. from a few days to a year).
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Acid deposition (Acid rain): The fallout of sulphur and nitrogen oxides released into the
atmosphere with combustion gases as sulphuric and nitric acid.
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Acidification: The change in the pH of soil and water caused by acid deposition.
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Aciding: Stimulation of a well using hydrochloric acid, hydrofluoric acid, acetic acid or other
acids to dissolve certain components of the reservoir rock that reduce porosity and permeability.
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Actual Peak Reduction (APR): The coincident reductions to the annual peak load (measured in
megawatts) achieved by customers that participate in a demand response program at the time of
the annual system peak of the utility or ISO. It reflects the changes in the demand for electricity
resulting from a sponsored demand response program that is in effect at the same time a utility or
ISO experiences its annual system peak load, as opposed to the installed peak load reduction
capability (i.e., Potential Peak Reduction). It should account for the regular cycling of energy
efficient units during the period of annual system peak load.
(APR):
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Administrative prices prices and tariffs set by a regulatory authority, and not influenced
directly by market forces
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Affiliate a company that is controlled by another or that has the same owner as another
company (ERRA Legal Regulation Working Group Terms);
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Aggregation - the process of organizing small groups, businesses or residential customer into a
larger, more effective bargaining unit that strengthens their purchasing power with utilities
(ERRA Legal Regulation Working Group Terms);
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Agreement - verbal or written agreement between the seller and buyer of the electricity or
natural gas, which is the bases for selling and buying processes.

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Allocative Efficiency whether those and only those products or services are provided to
consumers which they value at least as much as the (marginal) cost that the company had to incur
during the production process V. Allocative efficiency theory says that the distribution of
resources between alternatives does not fit with consumer taste (perceptions of costs and
benefits). For example, a company may have the lowest costs in "productive" terms, but the result
may be inefficient in allocative terms because the "true" or social cost exceeds the price that
consumers are willing to pay for an extra unit of the product. This is true, for example, if the firm
produces pollution (an external cost). Consumers would prefer that the firm and its competitors
produce less of the product and charge a higher price, to internalize the external cost.
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Allocative Inefficiency - Allocative efficiency theory says that the distribution of resources
between alternatives does not fit with consumer taste (perceptions of costs and benefits). For
example, a company may have the lowest costs in "productive" terms, but the result may be
inefficient in allocative terms because the "true" or social cost exceeds the price that consumers
are willing to pay for an extra unit of the product. This is true, for example, if the firm produces
pollution (an external cost). Consumers would prefer that the firm and its competitors produce
less of the product and charge a higher price, to internalize the external cost.
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Amortization a non-cash expense recorded in financial statements that reduces the value of a
intangible asset (such as brand, trademark or patent)
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Ancillary services: services related to generation of reserve capacity, regulation of frequency,
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voltage and other similar services necessary to ensure the stability of the system.
Those services necessary to support the transmission of electric power from seller to purchaser,
given the obligations of control areas and transmitting utilities within those control areas, to
maintain reliable operations of the interconnected transmission system. Ancillary services
supplied with generation include load following, reactive power-voltage regulation, system
protective services, loss compensation service, system control, load dispatch services, and energy
imbalance services.
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Ancillary Service Market Programs: Demand response programs in which customers bid load
curtailments in ISO/RTO markets as operating reserves. If their bids are accepted, they are paid
the market price for committing to be on standby. If their load curtailments are needed, they are
called by the ISO/RTO, and may be paid the spot market energy price.
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.
Appraisal well: A well drilled after a discovery well to study the structural situation and the gas
quality in order to verify the presence of recoverable reserves in categories necessary for
investment decisions, as well as to obtain data required for the development and exploitation of
the deposit.
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Aquifer: Water-bearing portion of a reservoir below or adjacent o a gas (or oil) accumulation.
The term is also used for water-bearing porous rocks that do not contain any gas (or oil)
accumulations.
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Asset Liquidity the quality of an asset that reflect how quickly it can be bought or sold without
causing a significant movement in the price
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Assets: In accounting terms, on the balance sheet of a company, everything that the company
owns and which has a money value is classified as an asset, with total assets being equal to total
liabilities. Assets can be divided into the following categories: tangible or fixed assets; intangible
assets; current assets and trade investments (investment in subsidiary or associated companies).
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Associated gas: Gas found in conntact with oil accumulations in the same reservoir. It may be
dissolved in the oil under reservoir conditions (solution gas) or may form a cap of free gas above
the oil int he reservoir (gas cap gas).
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Authority of the regulator -
Available Transfer Capacity: Net Transfer Capacity minus Notified Transmission Flow
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(=-)
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Available Transmission Capacity (ATC) cross-border electricity transmission capacity that is
available for commercial transactions and usually allocated to market players in auctions
(ATC) -
,

Average cost - The revenue requirement of a utility divided by the utility's sales. Average cost
typically includes the costs of existing power plants, transmission, and distribution lines, and
other facilities used by a utility to serve its customers. It also includes operations and
maintenance, tax, and fuel expenses (ERRA Legal Regulation Working Group Terms);
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Average share price: Amount traded in euros during the period/Number of shares traded during
the period
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Avoided costs - these are costs that a utility avoids by purchasing power from an independent
producer rather than generating power themselves, purchasing power from another source or
constructing new power plants. A Public Utility Commission calculates avoided costs for each
utility, and these costs are the basis upon which independent power producers are paid for the
electricity they produce. There are two parts to an avoided cost calculation: the avoided capacity
cost of constructing new power plants and the avoided energy cost of fuel and operating and
maintaining utility power plants (ERRA Legal Regulation Working Group Terms);
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( );
Auto producer: a natural or legal person generating electricity essentially for his own use.
.
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.
Automated Meter Reading: automatic or automated meter reading - allows meter read to be
collected without actually viewing or touching the meter with any other equipment. One of the
most prevalent examples of AMR is mobile radio frequency whereby the meter reader drives by
the property, and equipment in the car receives a signal sent from a communication device under
the glass of the meter.
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AMR ,
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B
Balance Sheet The Balance Sheet shows at a particular point in time the financial position of
an enterprise, including the value of all assets (left-hand side of the Balance Sheet) and liabilities
(right-hand side of the Balance Sheet).
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Balancing and Ancillary Services electricity services needed for the safe operation of the
electricity system, such as reserve capacity and voltage control
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Balancing markets - electricity markets where the demand and supply of balancing and ancillary
services interact
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Base-load power: Power generation that meets steady year-round demand for electricity.
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Basis risk: The uncertainty as to whether the natural-gas transportation spread will widen or
narrow between the time a natural-gas trading or hedge position in liquidated.
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Beta, levered/unlevered: Beta is the measure of a funds or a stocks risk in relation to the
market (benchmark). In the Capital Asset Pricing Model, the higher a companys beta, the greater
the systematic risk of an investment in that companys shares (a beta coefficient of 1 implies that
the company is of average risk). A beta of 1.5 means that a stocks excess return is expected to
move 1.5 times the market excess returns. Levered beta reflects both the operating and financial
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risks of a company. Unlevered beta is the beta for the sector, unlevered by the market value debt
to equity ratio for the sector: Unlevered Beta = Beta / (1 + (1- tax rate) (Debt/Equity Ratio)).
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Bilateral Contract: A contractual system between a buyer and a seller to obtain generation
and/or ancillary services of a given type, duration, timing and reliability over a contractual term.
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Billing or Revenue Meter: Meters installed at customer locations that meter electric usage and
possibly other parameters associated with a customer account and provide information necessary
for generating a bill to the customer for the customer account.
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Biodiversity: The existence of a wide variety of plant and animal species in their natural
environment (diversity in habitats and species and genetic diversity within species).
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Biomass - plant materials and animal waste used as a source of fuel (ERRA Legal Regulation
Working Group Terms);
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Blackout - a power loss affecting many electricity consumers over a large geographical area for a
significant period of time (ERRA Legal Regulation Working Group Terms);
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(
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Black Start -
Bottleneck Facility: A point on the system, such as a transmission line, through which all
electricity must pass to get to its intended buyers. If there is limited capacity at this point, some
priorities must be developed to decide whose power gets through. It also must be decided if the
owner of the bottleneck may, or must, build additional facilities to relieve the constraint.
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Break-even constraint - The requirement that the company's cost or expenses and income are
equal (i.e. breakeven point in economics).
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Broker - a retail agent who buys and sells power. The agent may also aggregate customers and
arrange for transmission, firming and other ancillary services as needed (ERRA Legal Regulation
- , .
,
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(
);
Building block approach/framework: An approach to setting the cap to prices or revenues over
the regulatory period. It involves forecasting the revenue requirement for the regulated company
for each year of the forthcoming regulatory period and translating this into a cap specified by the
initial price or revenue and an X factor.
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C
Capacity - the maximum load a generating unit, generating station, or other electrical apparatus
is rated to carry by the user or the manufacturer or can actually carry under existing service
conditions (ERRA Legal Regulation Working Group Terms);
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Capacity market; pipeline capacity market: A market which contracts for pipeline capacity are
resold to third parties, such as retail suppliers or large end-users.
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Capex: Capital expenditure. The purchase of fixed assets, eg plant and equipment, and
sometimes expenditure on current assets.
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Capital: The stock of goods which are used in production and which themselves have been
produced. The word capital in economics generally means real capital, ie physical goods.
However, in everyday language, it is often used to mean money capital, ie stocks of money that
are the result of past savings. It is often used as shorthand for capital employed.
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Capital Asset Pricing Model (CAPM) - An economic model for valuing stocks by relating risk
and expected return. Based on the idea that investors demand additional expected return (called
the risk premium) if asked to accept additional risk.
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(CAPM) -
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Capital contributions: In the context of funding network assets, direct payments by network
users to cover the purchase of specific assets. This arrangement is normally used for the finding
of connection assets. The term capital contributions often also covers contributions to the
companys capital from other sources, e.g. grants from the government.
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Capital employed: The capital in use by a business. There is no universally agreed definition of
the term. It is sometimes taken to mean net assets (ie depreciated fixed assets plus net working
capital). In the price regulation context, the regulatory asset base is generally the measure used of
the capital employed.
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Capital expenditure: Cash investments to acquire or improve an asset that will have a life of
more that one year; as distinguished from cash outflows for expense items normally considered
as part of the current operations. If an expense is a capital expenditure, it needs to be capitalized;
this requires the company to expand the cost of the expenditure over the useful life of the asset. If
the expense is one that maintains the asset at its current condition, the cost is deducted fully in the
year of the expense.
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Capital structure: The sources of long-term capital of a company. It is determined by the
numbers and types of shares it issues and its reliance on debt. Another definition is the mix of
different securities (e.g. debt instruments, shares) issued by a firm.
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Captive Customer: A customer who does not have realistic alternatives to buying power from
the local utility, even if that customer had the legal right to buy from competitors.
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Captured Regulation - when the regulatory agency is captured by the regulated industries and
so not serving the public interest.
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Carbon dioxide, CO2: A gas generated when fossil fuels are burned, see greenhouse gas.
, CO2: ,
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Cash flow per share: Net cash from operating activities/Average number of shares during the
period
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Cash Flow Statement - The Cash-Flow Statement identifies the sources and uses of cash cash
equivalents during the reporting period and explains the changes.
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Casing; well casing: pipe or set of pipes that can be screwed or welded together to form a string
16
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which is placed in the borehole for the purpose of supporting the sides of the borehole and to act
as a barrier preventing subsurface migration of fluids when the annulus between it and the
borehole has been cemented. A type of pipe used for uncasing a smaller diameter carrier pipe for
installation in a well.
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CBT
Certificate-based tracking - Certificate-based tracking is a procedure for tracking electricity
attributes using certificates. Such certificates represent a set of attributes for a unit of
electricity, and the attributes can be claimed by the owner of the certificate. Generally,
certificate-based tracking is interpreted as a system whereby the attributes (in the form of
certificates) can be freely transferred/traded between market actors, independent from
electricity flows. However, a certificate-based system may also have limited transferability.
The usual life cycle of a certificate is: issuance, transfer(s), redemption. Any certificate must
be redeemed if its value is used, e.g. for disclosure purposes. All certificate systems should
specify exactly which attributes are contained in the certificate and for which purposes
certificates can be redeemed.
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Certification/labelling: Measures enabling consumers to compare the energy efficiency of
products and appliances.
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/: ,
.
CHP: Combined heat and power generation. A method of power generation whereby the thermal
energy passed through a turbine is utilized for industrial purposes and/or district heating.
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Claw-back: In the regulatory context, a retrospective adjustment by which the benefits of a
companys efforts to lower costs in one period are confiscated during the next regulatory period,
perhaps through a downward adjustment to the revenue requirements in the following period.
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Coal-fired power plant = A power plant in which a steam turbine is driven by the steam
produced by burning coal in a boiler.
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Cogeneration - production of heat energy and electrical or mechanical power from the same fuel
in the same facility. A typical cogeneration facility produces electricity and steam for industrial
process use (ERRA Legal Regulation Working Group Terms);
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(
);
Cogenerator - a facility that produces electricity and/or other energy for heating and cooling.
(ERRA Legal Regulation Working Group Terms).
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);
Combined cycle gas turbine power plant = A power plant in which exhaust gases, typically
from the combustion of natural gas, are used to drive a gas turbine directly and then are routed
through a boiler to produce steam to drive a steam turbine.
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Combustion gas emissions = Gaseous by-products, such as CO2, SO2 and NO2, generated in
the combustion of fuels.
= , CO2,
SO2 NO2, .
Commercial quality: An aspect of the quality of electricity supply related to the individual
agreements between the network company and their customers concerning such things as the
conditions for (re) connection of new customers, regular transactions such as billing and meter
readings and occasional transactions such as responding to problems and complaints.
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ommunity law - consists of the founding Treaties (primary legislation) and the provisions of
instruments enacted by the Community institutions by virtue of them (secondary legislation).
In a broader sense, Community law encompasses all the rules of the Community legal order,
including general principles of law, the case law of the Court of Justice, law flowing from the
Community's external relations and supplementary law contained in conventions and similar
agreements concluded between the Member States to give effect to Treaty provisions.
All these rules of law form part of what is known as the Community acquis. (ERRA Legal
Regulation Working Group Terms).
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,
,
- .
, acquis Communitaire
(
);
Comparable net assets = Net assets adjusted for non-interest bearing assets and liabilities
arising from financial derivatives hedging future cash-flows where hedge accounting is not
applied according to IAS 39
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39
Comparable operating profit = Operating profit - non-recurring items - other items effecting
comparability
=
,
Comparable return on net assets, % = Comparable operating profit + Share of profit (loss) in
associated companies and joint ventures (adjusted for IAS 39 effects)/Comparable net assets
average x 100
, % =
+ ()
( 39) /
x 100
Competition - the competition between the licensees, by the economic activities that prevents
the privileges and support more effective service (ERRA Legal Regulation Working Group
Terms);
-
,
( );
ongestion means a situation in which an interconnection linking national transmission
networks, cannot accommodate all physical flows resulting from international trade requested by
market participants, because of a lack of capacity of the interconnectors and/or the national
20
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transmission systems concerned (Regulation (EC) No. 1228/2003);
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onnection - the connection between two electrical systems that permit the transfer of energy
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Connection charge: This recovers the cost of facilities that are exclusively associated with
connecting a generating unit or a customer.
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Connection services: The service provided in order to provide consumers a connection to the
electricity network such that they can be supplied with electricity.
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onservation - a foregoing or reduction of electric usage for the purpose of saving natural
energy resources and limiting peak demand in order to ultimately reduce the capacity
requirements for plant and equipment (ERRA Legal Regulation Working Group Terms);
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( );
Construction Work in Progress (CWIP): Money spent on an asset that has at the relevant time
not been commissioned.
(CWIP): , ,
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.
Consumer demand - the relationship between the price of a given product and the quantity that
consumers would like to purchase of it at those prices
-
,
onsumer education - efforts to provide consumers with skills and knowledge to use their
resources wisely in the marketplace (ERRA Legal Regulation Working Group Terms);
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onsumption (Fuel) - amount of fuel used for gross generation (ERRA Legal Regulation
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( );
onsumption of electricity shall mean national electricity production, including autoproduction,
plus imports, minus exports (gross national electricity consumption)
(Directive 2001/77/EC);
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) ( 2001/77/);
Continuity indicator
Contract-based tracking - Contract-based tracking is a procedure for tracking electricity
attributes along (in parallel with) the contracts which are concluded between parties on the
electricity market. This is generally interpreted as electricity contracts specifying the attributes
of the traded electricity using (non-standardised) information which is exchanged bilaterally
between the seller and buyer of electricity. However, it may also be based on standardised sets
of information (which can be similar to certificates) which would be transferred in parallel to
the electricity under the contract. Due to the high complexity of the electricity market and
volume of trades, contract-based tracking can be very complex and costly. However, may be
applied relatively easily in the case of long-term bilateral electricity contracts. Certificates,
which are transferable independent from the electricity market are the most common
alternative to contract tracking.
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, - ,
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ontract price - price marketed on a contract basis for one or more years (ERRA Legal
Regulation Working Group Terms);
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Contractual net balance of exchanges (MW): The difference between the contractual power
from other countries (import) and the contractual power to other countries (export). These values
include only medium-term and long-term exchange contracts with firm dispatchability of power
during the high load hours. Contributions from power stations with joint operation are regarded
as contractual power from other countries or to other countries. In any case of indispatchability
of contractual power from other countries or to other countries, whatever the reason may be, it
must not be taken into account within the contractual exchanges. The total of contractual
exchanges represents the exchange balance with third countries.
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, .
,
, , ,
.
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.
Controllable costs: these are costs that a manager can influence, such as personal costs
: ,
, , .
Conventional gas: Gas in a normal, porous, permeable reservoir rock, either int he gas phase or
dissolved in crude oil, and recoverable by normal technical production methods.
: ,
-
;
.
Coordinated auction - the coordinated auctioning method is the extension of bilateral explicit
auction mechanism, enhanced with the more accurate presentation of the physical behaviour of
the interconnected system
-
,

Cost audits - regulatory mechanisms whereby a regulated company's justified costs and asset
base are determined, usually by a disinterested third party appointed by the regulator
- ,
,
,
Cost function: A mathematical relationship (either linear or non linear) between cost, input
prices (if available), and outputs.
: ( )
, ( ) .
Cost of capital: In the price regulation context, it generally means the cost, measured as a rate of
interest, of the capital employed by a business, weighted according to the proportions of different
sources of capital used. In the regulatory context, the term rate of return (on assets) is
sometimes used synonymously with that of cost of capital.
: ,
,
24
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. ( )
.
Cost of debt: In the price regulation context, it generally means the cost, measured as a rate of
interest, of a companys debt, with reference to financial markets. In the regulatory context, the
term, (rate of) return on debt is sometimes used synonymously with the term, cost of debt.
:
,
. (
) .
Cost of equity: In the price regulation context, it generally means the cost, measured as a rate of
interest, of a companys equity, with reference to financial markets. In the regulatory context, the
term, (rate of) return on equity is sometimes used synonymously with the term, cost of equity.
:
,
.

.
Cost of service or cost plus regulation see rate of-return regulation
- .

Cost review (or cost audit or rate case) - regulatory mechanisms whereby a regulated
company's justified costs and asset base are determined, usually by a disinterested third party
appointed by the regulator
( ) -
,
, ,

Critical Peak Pricing (CPP): CPP rates are a hybrid of the TOU and RTP design. The basic rate
structure is TOU. However, provision is made for replacing the normal peak price with a much
higher CPP event price under specified trigger conditions (e.g., when system reliability is
compromised or supply prices are very high).
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(CPP): CPP
TOU RTP. TOU.
CPP
(,
, ).
Current assets: Assets that will normally be turned into cash within a year and can include
material stock, accounts receivable and cash deposits.
: ,
,
.
Current liabilities: Liabilities that will normally be repaid within a year and include accounts
payable.
() : ,
()
.
Curtailment Service Provider (CSP): Demand response load providers that are not necessarily
load serving entities. CSPs may sponsor demand response programs and sell the demand
response load to utilities, RTOs and/or ISOs.
(CSP): ,
. CSP

, RTO () ISO.
Customer Categories: A group of customers with common specified characteristics of demand
for the relevant Regulated Services.
:
.
Customers: Any natural or legal persons who use energy for their own need.
. ,
.
ustomer class - a distinction between users of electric energy. Customer class is usually
defined by usage patterns, usage levels, and conditions of service. Classes are usually categorized
generically by customer activity (e.g. residential, commercial, industrial, agricultural, street
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lighting). (ERRA Legal Regulation Working Group Terms);

.

, .
(, ,
, , , )
( );
ustomer service protection - the rules governing grounds for denial of service, credit
determination, deposit and guarantee practices, meter reading and accuracy, bill contents, billing
frequency, billing accuracy, collection practices, notices, grounds for termination of service,
termination procedures, rights to reconnection, late charges, disconnection/reconnection fees,
access to budget billing and payment arrangements, extreme weather, illness or other vulnerable
customer disconnection protections, and the like. In a retail competition model, would include
protections against "slamming" and other hard-sell abuses. (ERRA Legal Regulation Working
Group Terms);
- ,
, , ,
, , ,
, , ,
, , , ,
/ ,
,
,
. ,
"" ,
(
);
ross-border flow means a physical flow of electricity on a transmission network of a Member
state that results from the impact of the activity of producers and/or consumers outside of that
Member State on its transmission network. If transmission networks of two or more Member
States form part, entirely or partly, of a single control block, for the purpose of the intertransmission system operator (TSO) compensation mechanism referred to in Article 3 only, the
control block as a whole shall be considered as forming part of the transmission network of one
of the Member States concerned, in order to avoid flows within control blocks being considered
as cross-border flows and giving rise to compensation payments under Article 3. The regulatory
authorities of the Member States concerned may decide which of the Member States concerned
shall be the one of which the control block as a whole shall be considered to form part of
(Regulation (EC) No. 1228/2003);
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-,
/ - -
. -
, , ,

(TSO), 3,
, -,

3.
- ,
- ,
( () 1228/2003);
ross-subsidization - this refers to the transfer of assets or services from the regulated portion of
an electric utility to its unregulated affiliates to produce an unfair competitive advantage. Also,
cross-subsidization can refer to one rate class (such as industrial customers) subsidizing the rates
of another class (such as residential customers). (ERRA Legal Regulation Working Group Terms);
-

. ,
, (,
) (,
) ( );
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D
Daily peak - the maximum amount of energy or service demanded in one day from a company or
utility service (ERRA Legal Regulation Working Group Terms);
- ,
(
);
Deadweight loss a permanent loss of well being to society that can occur when equilibrium for
a good or service is not Pareto optimal, (that at least one individual could be made better off
without others being made worse off). Deadweight loss can be caused (though not necessarily) by
monopoly pricing (or even pricing in markets with high fixed costs), externalities or taxes or
subsidies.
- ,
,
, (, , , ,
).
( ) (
),
, , .
Decoupling is a ratemaking and regulatory tool that is designed to break the link between a
utilitys earnings and the energy consumption of its customers.
It removes the inherent disincentive that a utility has under traditional ratemaking to promote
energy conservation
The basis approach:
define a target for the utilitys revenues (i.e., non-gas or margin revenues) and a baseline use
per customer
place over- and under-collections to the target in a deferred account for recovery in a
subsequent period.
Under a decoupling mechanism, the utility cannot increase its earnings by increasing its sales
volumes because additional margin revenues are refunded to customers.
,
.
,
, .
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:
( ,
)

.

, ,
.
Declared export of electricity means the dispatch of electricity in one Member State on the basis
of an underlying contractual arrangement to the effect that the simultaneous corresponding takeup (declared import') of electricity will take place in another Member State or a third country

-
, ( ')
-
( () 1228/2003);
Declared import of electricity means the take-up of electricity in a Member State or a third
country simultaneously with the dispatch of electricity (declared export') in another Member
State (Regulation (EC) No. 1228/2003);

( ') - ( () 1228/2003);
Declared transit of electricity means a circumstance where a declared export' of electricity
occurs and where the nominated path for the transaction involves a country in which neither the
dispatch nor the simultaneous corresponding take-up of the electricity will take place
,
' ,
,
,
( () 1228/2003);
Deep connection costs: Costs of connections that cannot be directly allocated to an individual
consumer.
: ,
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.
Default Supplier:The supplier of electricity who provides electricity to Eligible Customers who
do not choose their own supplier.
: ,
,
.
Demand (electric) - the rate at which electric energy is delivered to or by a system, part of a
system, or a piece of equipment. Demand is expressed in kW, kVA, or other suitable units at a
given instant or over any designated period of time. The primary source of "demand" is the
power-consuming equipment of the customers (ERRA Legal Regulation Working Group Terms);
() - ,
,
. , ,
,
. " "
(
);
Demand Bidding/Buyback (DB): A demand response program where customers or curtailment
service providers offer bids to curtail based on wholesale electricity market prices or an
equivalent. Mainly offered to large customers (e.g., one MW and over), but small customer
demand response load can be aggregated by curtailment service providers and bid into the
demand bidding program sponsor.
/ (DB): ,
,
, .
(, ),
()

.
Demand elasticity the responsiveness of demand to a change in a determinate, for instance,
price, price of other goods and income
- ,
, ,
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Demand Response (DR): The planning, implementation, and monitoring of activities designed
to encourage customers to modify patterns of electricity usage, including the timing and level of
electricity demand. Demand response covers the complete range of load-shape objectives and
customer objectives, including strategic conservation, timebased rates, peak load reduction, as
well as customer management of energy bills.
(): , ,

, .

, ,
, ,
.
Demand Response Event: A period of time identified by the demand response program sponsor
when it is seeking reduced energy consumption and/or load from customers participating in the
program. Depending on the type of program and event (economic or emergency), customers are
expected to respond or decide whether to respond to the call for reduced load and energy usage.
The program sponsor generally will notify the customer of the demand response event before the
event begins, and when the event ends. Generally each event is a certain number of hours, and the
program sponsors are limited to a maximum number of events per year.
: ,
,
() ,
. (
) , ,
.

, , .
,
.
Demand Response Load: The load reduction that results from demand response activities.
:
.
Demand Side Bidding (DSB): A mechanism that encourages consumers to offer to undertake
changes to their usual pattern of consumption in return for financial reward. The financial reward
can be in the form of reduced electricity prices, or via a direct payment for electricity they have
not consumed, or even an availability payment for the promise of being available to make a
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consumption change at an agreed time. Common forms of demand participation are consumers
offers in organized markets or pools and the supply by energy users of specific additional
services such as ancillary services, congestion management, creation of reserve capacity, etc..
(DSB):
,

.
,
, ,
.

,
,
, , ...
Demand Side Management: 1. Refers to measures taken by a utility to encourage conservation

of electric usage or to reschedule electric usage for more uniform usage throughout the day or
year. Such efforts are intended at minimizing the size and number of generating facilities or
designing strategic load growth. 2. Planning, implementation, and evaluation of utility-sponsored
programs to change the timing or reduce the amount of a customer's energy consumption.
. 1.

.

. 2. ,
,

.
Depreciated optimised replacement cost: The replacement cost of an optimised system, less
accumulated depreciation. It allows for the depreciated state of the asset, and also incorporates
engineering optimisation of the utilitys asset. An optimised system is a reconfigured system
designed to serve the current load plus expected growth over a specified period using modern
technology.
:
,
. ,
.
,

33
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.
Depreciated replacement cost (DRC): An estimate of the value of an asset in use that is
equivalent to the net current cost of replacing the asset in its current state with an asset that has
similar service potential (i.e. output or service capacity).
(DRC):
,
,
(.. ).
Depreciation a non-cash expense recorded in financial statements that reduces the value of a
tangible asset as a result of wear and obsolescence
- , ,

Depreciation Cost of the relevant asset, or category of assets, means, for the purpose of this
Methodology, the Gross Asset Value of the asset divided by the assets economic life.

,
.
Deregulation - the elimination of regulation from a previously regulated industry or sector of an
industry (ERRA Legal Regulation Working Group Terms);
-
(
);
Direct access - the ability of a retail customer to purchase commodity electricity directly from
the wholesale market rather than through a local distribution utility (ERRA Legal Regulation
-
,
(
);
Direct debit bill: Averaged bill paid automatically by bank transfer either monthly or quarterly,
and reconciled yearly against actual ex-post consumption.
: ,
34
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,
.
Direct line means either an electricity line linking an isolated production site with an isolated
customer or an electricity line linking an electricity producer and an electricity supply
undertaking to supply directly their own premises, subsidiaries and eligible customers
,
, ,
,
,
( 2003/54/);
Direct line means a natural gas pipeline complementary to the interconnected system

( 2003/55/);
Direct Load Control (DLC): A demand response activity by which the program operator
remotely shuts down or cycles a customers electrical equipment (e.g. air conditioner, water
heater) on short notice. Direct load control programs are primarily offered to residential or small
commercial customers.
(DLC): ,

(,
,
) .
.
Discount factor: In finance and economics, the discount factor is the number by which a future
cash flow to be received at time t must be multiplied in order to obtain the current present value.
:
,
, t,
.
Dispatching of generation: The operating control of an integrated electric system that includes
the following: (1) the assigning of load to specific generating stations and other sources of
supply, (2) the controlling operations and maintenance of high-voltage lines, substations and
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equipment, (3) operating the principal tie lines and switching, (4) the scheduling of energy
transactions with connecting electric utilities.
,
:
(1)
; (2)
, ; (3)
; (4)
,
.
Dispute Resolution /
Distributed Generation - Small, modular, decentralized, grid-connected or off-grid energy
systems located in or near the place where energy is used.
- , , ,
,

Distribution - the system of wires, switches, and transformers that serve neighborhoods and
business, typically lower than 69,000 volts. A distribution system reduces or downgrades power
from high-voltage transmission lines to a level that can be used in homes or businesses.
- , ,
, 69 000 .

,
( );
DisCo - The regulated electric utility entity that constructs and maintains the distribution wires
connecting the transmission grid to the final customer. Disco can also perform other services such
as aggregating customers, purchasing power supply and transmission services for customers,
billing customers and reimbursing suppliers, and offering other regulated or non-regulated energy
services to retail custom. The "wires" and "customer service" functions provided by a distribution
utility could be split so that two totally separate entities are used to supply these two types of
distribution services
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(DisCo) -
,
, .
,
,
,
,
.

,
, ,

Distribution companies - electricity companies responsible for the psysical transportation of

electricity from the high-voltage transmission network to the middle- and low-voltage customers
- ,

Distributed Generation: A distributed generation system involves small amounts of generation

located on a utility's distribution system for the purpose of meeting local or regional (substation
level) peak loads and/or displacing the need to build additional (or upgrade) local distribution
lines.
.
,

( ) ,

.
Distribution line - this is a line or system for distributing power from a transmission system to a
customer. It is any line operating at less than 69,000 volts (ERRA Legal Regulation Working
Group Terms);

.
,
69 000 (
);
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Distribution system - that part of the electric system that delivers electric energy to consumers.
- ,
(
);
Distribution system operator means a natural or legal person responsible for operating,
ensuring the maintenance of and, if necessary, developing the distribution system in a given area
and, where applicable, its interconnections with other systems and for ensuring the long term
ability of the system to meet reasonable demands for the distribution of electricity;
(Directive 2003/54/EC)

, , ,
, ,
,

( 2003/54/);
Distribution UOS: This is separately set and normally includes a standing charge (fixed
monthly, not capacity or energy-dependent), a system availability charge (per kW), and a unit
charge (variable by the kWh, can vary by time period and by season).
UOS :
( ,
), ( ) (
/,
).
Distribution utility (Disco) - the regulated electric utility entity that constructs and maintains the
distribution wires connecting the transmission grid to the final customer. The Disco can also
perform other services such as aggregating customers, purchasing power supply and transmission
services for customers, billing customers and reimbursing suppliers, and offering other regulated
or non-regulated energy services to retail customers. The "wires" and "customer service"
functions provided by a distribution utility could be split so that two totally separate entities are
used to supply these two types of distribution services (ERRA Legal Regulation Working Group
Terms);
(
) - ,
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.
,
,
, ,

. "" " ",
, ,

(
);
District heating: Means of providing heating to a number of buildings from a centrally located
source.
:
.
Divestiture: The stripping off of one utility function from the others by selling (spinning-off) or
in some other way changing the ownership of the assets related to that function. Most commonly
associated with spinning-off generation assets so they are no longer owned by the shareholders
that own the transmission and distribution ssets.

- ,
.

.
Dividend yield, %: Dividend per share/Share price at the end of the period x 100
, %: /
x 100
DNO: Distribution Network Operator
DNO ( ): .
Double Tariff (night/day): Tariff (usually per kWh), which differentiates between night and
day. Night tariffs typically start at 11 pm and last until 6 am. During these hours, the price per
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kWh electricity is lower than during the normal day hours.
(/): ( /),
. 11
6 . / ,
.
Dow Jones Sustainability Indexes: The Dow Jones Sustainability Indexes track the financial
performance of the leading sustainability-driven companies worldwide based on specific criteria.
:
,
, , .
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E
Earnings per share Earnings returned on the initial investment amount
(EPS) - ,
EBITDA (Earnings before interest, taxes, depreciation and amortisation)continuing

operations = Operating profit continuing operations + Depreciation, amortisation and
impairment charges continuing operations
EBITDA ( ,
) =
+ ,
Eco-labelled energy = Electricity produced in accordance with certain criteria in an

environmentally benign manner and with renewable sources of energy. For instance, Norppa
electricity in Finland and Bra miljval in Sweden.
= ,

. , Norppa
Bra miljval .
Economic Demand Response Event: A demand response event in which the demand response
program sponsor directs response to an economic market opportunity rather than for reliability or
because of an emergency in the energy delivery system of the program sponsor or the RTO/ISO.
: ,

, , -

RTO/ISO.
Economic efficiency - a term that refers to the optimal production and consumption of goods and
services. This generally occurs when prices of products and services reflect their marginal costs.
Economic efficiency gains can be achieved through cost reduction, but it is better to think of the
concept as actions that promote an increase in overall net value (which includes, but is not limited
to, cost reductions) (ERRA Legal Regulation Working Group Terms);
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- ,
. ,
.
,
, ,
( , )
( );
Economic precedence means the ranking of sources of electricity supply in accordance with
economic criteria (Directive 2003/54/EC);
()
(
2003/54/);
Economic versus technical lifetime: Economic lifetime is the optimum renewal period for an
asset (it may appear preferable to renew the asset early to minimise operating costs and usage
costs). Technical (accounting) lifetime is, for a given asset category, the lifetime chosen by the
company to depreciate this asset category in its accounts.
:
(
,
).
() ,

.
Economies of scale the decreased per unit cost as output increases
-
Economies of scope: These exist when it is cheaper for one firm to provide two or more related
products together than for each of these products to be provided by a separate firm.
: ,
,
.
Efficiency In very general terms, a given allocation of goods is efficient, if no re-allocation is
possible during which someone is made better-off, while no one else gets hurt.
- ,
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, , -
, .
Efficiency carry-over: In the context of incorporating the capex into the RAB, a term used to
explain how the gains resulting from efficiency increases (i.e. a saving in capex) are transferred
between two regulatory periods and also to explain what time is allowed for retaining these gains.
The term is also applied to opex.
: capex ( )
RAB ,
(, )
, ,
.
opex ( ).
Efficiency score: A zero-one indicator of the relative distance between a given decision-making
unit and the best-practice unit (or units) in the sample.
: -
, ,
() .
(Price)Elasticity of demand percentage change in the quantity demanded that occurs in
response to a 1 percent rise in the price
() - ,
1-
Electric distribution company - the company that owns the power lines and equipment
necessary to deliver purchased electricity to the customer (ERRA Legal Regulation Working
Group Terms);
- ,
,
(
);
Electric plant (physical) - a facility that contains all necessary equipment for converting energy
into electricity (ERRA Legal Regulation Working Group Terms);
() ,
(
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);
Electric power supplier - non-utility provider of electricity to a competitive marketplace
(
);
Electric system - this term refers to all of the elements needed to distribute electrical power. It
includes overhead and underground lines, poles, transformers, and other equipment
- ,
.
, (),
( );
Electric utility - a legal entity that owns and/or operates facilities for the generation,
transmission, distribution, or sale of electric energy (ERRA Legal Regulation Working Group
Terms);
- ,
/ , ,
( );
Electric utility affiliate - this refers to a subsidiary or affiliate of an electric utility. Many
utilities form affiliates to develop, own, and operate independent power facilities
-

.
, ,
(
);
Electricity Disclosure - Electricity Disclosure is a requirement implemented in the revised
Electricity Market Directive (2003/54/EC). All suppliers of electricity to final customers have
to disclose to their customers the contribution of different energy sources to the portfolio of
the supplier in the preceding year. They must also disclose related environmental impact
indicators, at least in terms of CO2 emissions and the production of nuclear waste.
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The objective of disclosure is to provide consumers with relevant information about power
generation and to allow for informed consumer choice, and for choice not to be based on
electricity prices alone. In a liberalised market, disclosure requires some sort of tracking of the
required attributes from generation to the supplier.
Member states have implemented national legislation on disclosure in different ways,
sometimes also allowing for disclosure of differentiated product information (e.g. a green
power product and a standard product).
While green power quality labelling is based on subjective quality criteria, which usually
exclude a significant part of the electricity market from labelling, disclosure is an objective
information scheme for the whole electricity market, providing consumers with information
which they can use following their individual preferences.
-
,
(2003/54/EC).

.

, , ,
CO2 .

,
, ,
.

.
-
,
(,
).
,
,
,
,
,
.
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Electricity generation attributes - Electricity generation attributes are pieces of information
about electricity generated. Attributes generally include the energy source and technology
used for generation and the greenhouse gas emissions and nuclear waste associated with the
generating process, information on which is required for electricity disclosure.
More detailed information may also be given depending on the purposes which might require
tracking of such information, for example a support attribute may specify whether the unit of
electricity is eligible for one or several support schemes (such as obligations or feed-in tariffs),
and whether such support has actually been used. In the case of RES-E, a target attribute can
specify whether the underlying generation can be credited towards the fulfilment of the
indicative target for the expansion of RES-E under the Renewables Directive (2001/77/EC).
Under a disclosure scheme, a disclosure attribute might contain a unique proof that a unit of
electricity has been generated, which can be used to allocate this generation to a unit of
electricity consumption for disclosure purposes.
Depending on the design of tracking schemes, some of the attributes for the respective unit of
electricity may be separated, for example in a separate tracking scheme, so that not all
attributes are necessarily allocated in parallel. This can be the case where, for example, a
tracking system is in place for electricity disclosure while a tradable renewable electricity
certificate (TREC) system is in place for supporting RES-E.
-
.
, , ,
,
, ,
.
,
, , ,
,
(,
),
. ,

(2001/77/EC).

,
,
.
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, ,
,
. , ,
,

(TREC) .
Electricity produced from renewable energy sources shall mean electricity produced by plants
using only renewable energy sources, as well as the proportion of electricity produced from
renewable energy sources in hybrid plants also using conventional energy sources and including
renewable electricity used for filling storage systems, and excluding electricity produced as a
result of storage systems (Directive 2001/77/EC);
,
, ,
, ,
,
,
, ,
,
( 2001/77/);
Electricity tracking - Electricity tracking is the process of assigning electricity generation

attributes to electricity consumption.
Systems for assigning generation attributes to electricity suppliers and consumers respectively
are required in order to facilitate a variety of policies such as:
Electricity Disclosure, which provide details about the overall fuel mix of the
supplier and the respective environmental impact to final consumers (Directive
2003/54/EC); and
Guarantees of Origin for electricity from renewable energy sources or high

efficiency cogeneration (Directives 2001/77/EC and 2004/8/EC).
This process of assigning attributes may be based on various forms of allocation and tracking.
Three main processes can be distinguished (and are further explained below): contract-based
and certificate-based tracking, which are both forms of explicit tracking, and implicit tracking.
Existing systems are generally made up of a combination of such allocations.
Please note that electricity tracking does not involve the tracking of electrons or physical flow
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of electricity across networks.
-
.

, , ,
, :
,

(
2003/54/EC);

(
2001/77/EC 2004/8/EC).

.
( ):
,
, .
.
,
.
Electricity trade: Scheduled flows of active power between two countries or among three or
more countries, and payment for imported energy and transit services based on signed contracts
for electricity export, import, and transit.
. ,
,
, .
Eligibity threshold
,
, ,
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21 ( 2003/54/EC
26 2003
, 96/92/EC);
Eligible customers means customers who are free to purchase electricity from the supplier of
their choice within the meaning of Article 21 of this Directive (DIRECTIVE 2003/54/EC OF
THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 26 June 2003 concerning
common rules for the internal market in electricity and repealing Directive 96/92/EC);
,
, ,
21 ( 2003/54/EC
26 2003
, 96/92/EC);
Emergency Demand Response Event: A demand response event called by the program sponsor
in response to an emergency of the delivery system of the demand response sponsor or of another
entity such as a utility or ISO.
: ,

,
ISO.
Emergent market means a Member State in which the first commercial supply of its first longterm natural gas supply contract was made not more than 10 years earlier
-,

10 ( 2003/55/);
End-use - the specific purpose for which electric is consumed (I.e. heating, cooling, cooking,
etc.) (ERRA Legal Regulation Working Group Terms);
- ,
), , , , ..) (
);
Energy charge - the amount of money owed by an electric customer for kilowatt-hours
consumed (ERRA Legal Regulation Working Group Terms);
- ,
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- (
);
Energy consumption - the amount of energy consumed in the form in which it is acquired by the
user. The term excludes electrical generation and distribution losses (ERRA Legal Regulation
- , ,
.
);
Energy costs - costs, such as for fuel, that are related to and vary with energy production or
consumption (ERRA Legal Regulation Working Group Terms);
- , ,

( );
Energy efficiency - programs that reduce consumption (ERRA Legal Regulation Working Group
Terms); Refers to programs that are aimed at reducing the energy used by specific end-use
devices and systems, typically without affecting the services provided. These programs reduce
overall electricity consumption (reported in megawatthours), often, but not always, without
explicit consideration for the timing of programinduced savings. Such savings are generally
achieved by substituting technologically more advanced equipment to produce the same level of
end-use services (e.g. lighting, heating, motor drive) with less electricity. Examples include
energy saving appliances and lighting programs, high-efficiency heating, ventilating and air
conditioning (HVAC) systems or control modifications, efficient building design, advanced
electric motor drives, and heat recovery systems.
- ,
);
: ,
,
, .
( ), ,
, ,
.

(, , ,
) .
,
, (HVAC)
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, ,
.
Energy efficiency - Energy efficiency is the practice of reducing the amount of energy used
without reducing the end-use benefits enabled by that energy. Energy efficiency can be
categorised in a number of ways including end-use efficiency and end-to-end efficiency
-
,
.
,
( )
Energy Imbalance Service

Energy resources - everything that could be used by society as a source of energy (ERRA Legal
- ,
( );
Energy source - a source that provides the power to be converted to electricity (ERRA Legal
- , ,
( );
Energy use - energy consumed during a specified time period for a specific purpose (usually
expressed in kWh) (ERRA Legal Regulation Working Group Terms);
- ,
( ) (
);
Enforcement -
Environmental energy tax A tax proposed by the EU on fossil energy sources to limit carbon
dioxide emissions, and on other forms of energy to promote efficiency of use.
,

,
.
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Environmental permit: A licence defining maximum environmental values, granted by
authorities.
:
,
, .
Equity the amount of assets that are owned by a companys shareholders

- ,
Equity per share: Shareholder's equity/Number of shares at the end of the period
= /

Equity-to-assets ratio, % = Total equity including minority interest/Total assets x 100
, % =
, / x 100
ESCO (Energy Service Company): An entity that enables a customer to reduce consumption,
and that typically splits the cost savings.
ESCO ( ): ,
, ,
.
Ex-ante assessment: In a price regulation context, assessment of the relevant aspect, usually
capital expenditure, before the expenditure occurs, on the basis of forecasts. This usually happens
when prices are set before the start of a regulatory period.
:
, , ,
. ,
.
Ex ante regulation: Ex ante regulation is anticipatory intervention. Ex ante regulation uses

government-specified controls to
Prevent socially undesirable actions or outcomes in markets, or
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Direct market activity towards socially desirable ends.
Ex ante regulation is mainly concerned with market structure, that is the number of firms and
level of market concentration, entry conditions, and the degree of product differentiation.
Ex ante: Ex ante .
Ex ante

,
,
.
Ex ante, , ,
, ,
.
Ex-post assessment: In a price regulation context, assessment of the relevant aspect, usually
capital expenditure, after the expenditure occurs, on the basis of actual data. This usually happens
when prices are set before the start of a regulatory period and it refers to the assessment of the
capex in the then current regulatory period, which is coming to its end.
:
, , ,
. ,
,
, .
Ex post regulation: Ex post regulation addresses specific allegations of anti-competitive
behavior or market abuse. Ex post regulation aims to redress proven misconduct through a range
of enforcement options including fines, injunctions, or bans.
Ex post regulation is mainly concerned with market conduct the behavior of a firm with
respect to both its competitors and its customers.
Ex post: Ex post
.
Ex post
, ,
.
Ex post, ,
,
/.
53
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Explicit tracking - Tracking of electricity attributes from an explicit (set of) electricity
generating plant which were allocated to a unit of electricity. Explicit tracking includes
certificates or contract-based methods and is opposed to implicit tracking.
-
() , .
,
, .
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F
Facility - a location where electric energy is generated from energy sources (ERRA Legal
- ,
( );
Fair rate of return an item in the justufued cost that reflects the (opportunity) cost of capital
assets
C - ,
()
Feed-in Tariffs - minimum prices for feeding into grids electricity generated from renewable
energy sources. The synonyms : "premium-set tariffs", "premium prices", "favorable tariffs".
Introduced especially for renewable energy price setting

Feed-in System
Final customers means customers purchasing electricity for their own use
,
( 2003/54/);;
Financial leverage - the efficiency of using borrowed capital: loan reinvested with the hope to
earn a greater rate of return than the cost of interest
-
: ,
,
Financial Reporting Standards (FRS): Authoritative statements of how particular types of
transaction and other events should be reflected in financial statements (a UK body).
(FRS): ,

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( ).
Financial statements - The most important financial statements of the company (including the
Balance Sheet, Income Statement and Cash Flow Statement) that are used by the regulator to
asess the financial position if the regulated company.
- (
,
), ,
.
Fixed assets: Physical assets such as land, buildings, plant, machinery, vehicles and furniture.
: ,
, , .
Fixed cost - production expenses that are independent of the level of output such as loan
repayments, security costs and marketing and administration costs
- ,
, , ,

Fixed rate: The part of electricity price that does not depend on the amount of consumption.
Usually this is a fixed fee paid per year.
: ,
. , .
Flat-rate tariff: A tariff that does not vary with the level of consumption. Should ideally reflect
fixed costs.
: ,
. .
Force majeure

Forward Market - that part of the foreign exchange market concerned with agreeing the price of
a currency now to buy or sell in the future
- ,

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Fossil fuel: Fuel derived from fossilised organic matter found in the earths crust. Such fuels
include coal, oil and natural gas. Fossil fuels are non-renewable.
: ,
, . ,
. .
Functional unbundling - the functional separation of generation, transmission, and distribution
transactions within a vertically integrated utility without selling of "spinning off" these functions
into separate companies (ERRA Legal Regulation Working Group Terms);
-
(), ,
""
( );
Funds from operations (FFO): Net cash from operating activities before change in working
capital
(FFO):

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Gas hydrate: Solid formed under certain pressure and temperature conditions (even above 0 C)
from water and methane. gas must be dehydrated before it enters gas line sin order to avoid
plugging the lines by such solids.
: ,
,
( 0 C)
, ,
. .
Gas treatment: Removal of water, condensate, and other unwanted components from the gas in
order to bring it up to specifications, defined for pipeline transport.
: ,

.
Gas turbine: A high-speed machine used for converting heat energy from the exhaust gases
produced during combustion into mechanical work. Natural gas or light fuel oil can be used as
fuel.
: ,
, ,
.
.
Gearing: A companys net debt expressed as a percentage of its total capital. UK regulators use
net debt as a percentage of the regulatory capital value. Other common measures include the ratio
of net debt to net debt plus equity expressed as a percentage.

(""): ,
.
.

.
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Generation means the production of electricity (Directive 2003/54/EC);

( 2003/54/);
Generating unit - combination of connected prime movers that produce electric power (ERRA
Legal Regulation Working Group Terms);
- ,
(
);
Generation (electricity) - process of producing electric energy by transforming other forms of
energy (ERRA Legal Regulation Working Group Terms);
() -
(
);
Generation company (Genco) - a regulated or non-regulated entity (depending upon the
industry structure) that operates and maintains existing generating plants. The Genco may own
the generation plants or interact with the short term market on behalf of plant owners. In the
context of restructuring the market for electricity, Genco is sometimes used to describe a
specialized "marketer" for the generating plants formerly owned by a vertically-integrated utility
- (
),
.

.
,
,

( );
Geothermal - an electric generating station in which steam tapped from the earth drives a
turbine-generator, generating electricity (ERRA Legal Regulation Working Group Terms);
, , ,
,
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( );
Greenhouse gas = A gas that absorbs heat radiation and traps it in the atmosphere, thus
strengthening the greenhouse effect. The main greenhouse gases are carbon dioxide and methane.
= ,
, , .
.
Grid - matrix of an electrical distribution system (ERRA Legal Regulation Working Group
Terms);
- (
);
Grid Code: A document containing the minimum technical rules for connection to the network
and maintenance of network stability, security and reliability, mandatory for all market
participants. This document must be prepared by a transmission system operator (TSO) and
approved by a regulatory body (independent regulatory agency or ministry) representing the
government of the country in which the TSO is located.
. ,

, .
()
(
), ,
.
Gross investments in shares: Subsidiary shares, shares in associated companies and other shares
in available for sale financial assets. Investments in subsidiary shares are net of cash and grossed
with interest-bearing liabilities in the acquired company
: ,

.
,

Gross salvage (salvage) - the remaining value of an asset after depreciation
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( ) -

Group consumption - (service) buying electricity or gas for the self consumption of one or more
persons (ERRA Legal Regulation Working Group Terms);
- ()
(
);
Guarantees of Origin - Guarantees of Origin were introduced by two European Directives:
for RES-E, the GO is defined in Directive 2001/77/EC, Art. 5, and for high efficiency
cogeneration in Directive 2004/8/EC, Art. 5. Based on the text of the respective Directives, the
GO shall enable producers of electricity from renewable energy sources or from high
efficiency cogeneration to demonstrate that the electricity they sell is produced from the
respective sources or technologies within the meaning of the Directives. The GOs as defined
by these Directives are issued on request only and therefore will most likely cover only part of
the respective markets. Because the Directives do not specify the instrument of the GO in
much detail, the implementation of GO in member states and their potential application shows
a significant variation (see the report from the REGO project for details, http://www.rego.info).
-
: ( )
2001/77/EC, 5,
2004/8/EC, 5. ,

()
, , ,

. , ,
, , ,
.
, -
(
. REGO, http://www.re-go.info).
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H
Historic cost asset valuation (HC): A method of valuing assets that values them at their original
purchase price.
(): ,
.
Horizontally integrated undertaking means an undertaking performing at least one of the
functions of generation for sale, or transmission, or distribution, or supply of electricity, and
another non electricity activity;
,
, , , ,
, ,
( 2003/54/);
Horizontal Network: That part of the transmission system, which is used to transmit electricity
between countries and within the country. It contains the transmission system elements that are
influenced significantly by cross-border exchanges.
. ,
.
,
.
Household customers means customers purchasing electricity for their own household
consumption, excluding commercial or professional activities
,
,
( 2003/54/);
Hub: A physical or fictitious location int he natural-gas transmission network that serves to reroute incoming nad outgoing gas flows, to provide various and complex (storage) services to all
industry players and to establish and facilitate a national (and/or international) Natural-gas trade
infrastructure and operation. A geographical location where multiple buyers trade natural gas for
physical delivery.

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Hydroelectric power: Electricity generated by utilizing the downward movement of water.
: ,
.
Hydroelectric power plant: A power plant utilizing a water flow to turn hydro-turbines.
: ,
.
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I
Imports/exports (GWh): Values that take into account the physical exchanges on the crossfrontier transmission lines, but in addition also exchange values on lines <= 110 kV outside of the
interconnected transmission system and on the other hand values resulting with regard to
international contracts (water claim). For presenting the operation of the interconnected
transmission system only interconnected transmission lines, which are registered in these terms,
are taken into consideration.
() (). ,
,
<= 110 ,
,
( ).

,
.
Implicit tracking - Tracking of electricity attributes which were allocated using averages and
statistics, as opposed to explicit tracking. Implicit tracking could utilise for example national
or European data on the overall generation mix.
- ,

, . ,

.
Incentive-based approach
Incentive regulation: Regulation by means of economic incentives. In the context of price
regulation, it is sometimes used to mean solely cap regulation and/or performance-based
regulation.
:
.
/
.
Inclining block rates with inclining block rates increasing consumption is charged by
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increasing prices (a kind of social tariff)
-
(
)
Income Statement The Income Statement lists all revenues and expenditures of the firm in the
reporting period (usually a year) showing the net (after tax) income as the outcome of the
aggregation.
-
( ),
( ) , .
Incumbent: The entity or a part of the entity that previously served customers when they were
all captive, and generation, transmission, distribution, system operation and supply of electricity
was a bundled monopoly service.
: , ,
, , ,
, ,
.
Incumbent Monopoly a monopoly that is already participating in the market
- ,
Incumbent service provider - a former vertically integrated monopoly that used to have an
exclusive right to provide services in a given area
() -
,

Independent power producers (IPPs) - these are private entrepreneurs who develop, own or
operate electric power plants fueled by alternative energy sources such as biomass, cogeneration,
small hydro, waste-energy and wind facilities (ERRA Legal Regulation Working Group Terms);
(IPP)
,
, ,
, , , ,
( );
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Independent system operator (ISO) - an ISO is the entity charged with reliable operation of
the grid and provision of open transmission access to all market participants on a nondiscriminatory basis (ERRA Legal Regulation Working Group Terms);
(ISO) - ISO ,

(
);
Indexation: The procedure for adjusting the value of the assets for the effect of inflation, where
the value of the assets is adjusted (increased or decreased) to reflect changes in an underlying
index.
: ,
( ),
.
Informational asymmetry the condition that information is known to some, but not all,
participants

,
Intangible assets: Nonmaterial assets such as technical expertise, trademarks, and patents.
: ,
, .
Integrated electricity undertaking means a vertically or horizontally integrated undertaking

( 2003/54/);
Interconnection (electric utility) - the linkage of transmission lines between two utility,
enabling power to be moved in either direction. Interconnections allow the utilities to help
contain costs while enhancing system reliability (ERRA Legal Regulation Working Group
Terms);
( ) -
,
.
, (
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);
Interconnection: A connection (lines, cables and equipment, including transformers, etc.) that
may be used to convey electrical energy in either direction between networks, between power
stations, or between power stations and networks. An interconnection may exist within the limits
of a single undertaking or among several undertakings, within one geographical area or among
several geographical areas, within one country or among several countries.
. ( ,
.),
,
.
,
, .
Interconnector means a transmission line which crosses or spans a border between Member
States for the sole purpose of connecting the national transmission systems of these Member
States (Directive 2003/55/EC);
,
-
- ( 2003/55/);
Interconnectors means equipment used to link electricity systems (Directive 2003/54/EC);
( 2003/54/);
Interconnected countries: Countries that are linked together by one or more interconnections.
: ,
.
Interconnected line: A line providing an interconnection.
: ,

Interconnected network: All interconnected lines, without regard to voltage, included within the
limits of a single undertaking or among several undertakings, within one geographical area or
among several geographical areas, within one country or among several countries.
. ,
, ,
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,
.
Interconnected system means a number of transmission and distribution systems linked together
by means of one or more interconnectors (Directive 2003/54/EC);
,
(
2003/54/);
Interconnected system means a number of systems which are linked with each other
, (
2003/55/);
Interest-bearing net debt = Interest-bearing liabilities - cash and cash equivalents
, = ,

Interest coverage = Operating profit/Net interest expenses

= /

Intermediate-level waste = Nuclear waste which contains an intermediate amount of radioactive
substances, the treatment of which requires radiation protection measures but not cooling.
Intermediate-level wastes include ion-exchange resins used for purifying nuclear reactor water.
= ,
,
, .
- ,
.
Interruptible/Curtailable Service (I/C): Curtailment options integrated into retail tariffs that
provide a rate discount or bill credit for agreeing to reduce load during system contingencies.
Penalties may be assessed for failure to curtail. In some instances, the demand reduction may be
affected by direct action of the System Operator (remote tripping) after notice to the customer in
accordance with contractual provisions. Interruptible programs have traditionally been offered
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only to the largest industrial (or commercial) customers. Interruptible Demand as reported here
does not include Direct Control Load or price responsive demand response.
/ (I/C): ()
,

. .

( )
.
( ) .
, ,
.
Investment planning: Long-term planning of load growth related investment, reinforcements
and replacement investments.
:
, .
ISO, International Organization for Standardization = An international standard-setting body
whose quality, environmental and safety management standards (ISO 9000/14000/18000 series)
have achieved an established position in industry.
ISO, =
, ,
( ISO 9000/14000/18000)
.
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J
Jurisdiction the power of a court or judge to entertain an action, petition or other proceeding.
Jurisdiction also signifies the district or geographical limits within which the judgements or
orders of a court can be enforced or executed (ERRA Legal Regulation Working Group Terms);
,
, .
,

(
);
Justified costs - costs that are necessary to provide the regulated service
- ,

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K
Kirchhoffs Current Law - At any junction node in an electrical circuit, the sum of the
incoming currents equals the sum of the outgoing currents.
-
.
Kirchhoffs Voltage Law - around any closed electrical circuit loop, the sum of the voltage
drops is equal to the sum of the voltage rises.
-
.
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L
Least-Cost Planning/Integrated Resource Planning: A plan for meeting the public's need for
energy services provided by a regulated electric or gas utility, after safety concerns are addressed,
at the lowest present value life cycle cost, possibly including environmental and economic costs.
Least-cost planning may involve a strategy combining investments and expenditures on energy
supply, transmission and distribution capacity, transmission and distribution efficiency, and
comprehensive energy efficiency programs.
/
: ,

, ,
, ,
.
, ,
, ,
.
Legal Framework -
License
Licensee -
Line - a line is a system of poles, conduits, wires, cables, transformers, fixtures, and accessory
equipment used for the distribution of electricity to the public (ERRA Legal Regulation Working
Group Terms);
- , , , ,
, ,
(
);
Linepack means the storage of gas by compression in gas transmission and distribution systems,
but excluding facilities reserved for transmission system operators carrying out their functions

, ,
,
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( 2003/55/);
LNG facility means a terminal which is used for the liquefaction of natural gas or the
importation, offloading, and re-gaseification of LNG, and shall include ancillary services and
temporary storage necessary for the re-gaseification process and subsequent delivery to the
transmission system, but shall not include any part of LNG terminals used for storage
,
, ,
,
,
, ( 2003/55/);
LNG system operator means a natural or legal person who carries out the function of
liquefaction of natural gas, or the importation, offloading, and re-gaseification of LNG
and is responsible for operating a LNG facility (Directive 2003/55/EC);

, ,
, , ,
( 2003/55/);
Load - the amount of electric power delivered or required at any specified point or points on a
system. Load originates primarily at the power consuming equipment of the customer (ERRA
- ,
.
(
);
Load profile: A time sequence, which defines a capacity load value for each settlement period.
Analytical load profiles are used for small customers at low voltage level where no load meters
are installed for settlement of use of system charges.
: ,
.
,
,
.
Load-related expenditure (LRE): Expenditure, usually capex, which is related to the
73
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connection of new customers to the distribution system and reinforcements to the existing system
to accommodate general load growth.
(LRE): , ,

,
.
Load-serving entity (LSE): Any entity, including a load aggregator or power marketer, that
serves end-users within a control area and has been granted the authority or has an obligation
pursuant to state or local law, regulation, or franchise to sell electric energy to end-users located
within the control area.
, (LSE): ,
,
,
, ,
,
.
Long Run Marginal Cost (LRMC): In the context of energy markets, means the incremental
cost of optimum adjustments in the system expansion plan and system operations attributable to
an incremental demand increase that is sustained into the future.
(LRMC):

, ,
.
Long-term planning means the planning of supply and transportation capacity of natural gas
undertakings on a long-term basis with a view to meeting the demand for natural gas of the
system, diversification of sources and securing supplies to customers (Directive 2003/55/EC);

,
( 2003/55/);
Long-term system Entry Capacity (LTSEC): Capacity that is offered by Transco in annual
auctions for years 3 to 15.
(LTSEC): ,
Transco 3 15 .
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Loop Flows - loop flow is the unintended electricity flowing on a The movement of electric
power from generator to load by dividing along multiple parallel paths; it especially refers to
power flow along an unintended path that loops away from the most direct geographic path or
contract path.
-
,
;
,
.
Losses - the general term applied to energy (kWh) and capacity (kW) lost in the operation of an
electric system. Losses occur principally as energy transformations from kWh to waste-heat in
electrical conductors and apparatus. This waste-heat in electrical conductors and apparatus. This
power expended without accomplishing useful work occurs primarily on the transmission and
distribution system (ERRA Legal Regulation Working Group Terms);
- , () (),
.

. ,
(
);
Lost Revenue Adjustment: A mechanism by which regulators can allow utilities to recover lost
revenue resulting from activities such as energy efficiency and demand-side management,
thereby promoting energy efficiency despite lowered demand caused by energy efficiency
programs.
: ,

, ,
, ,
, ,
.
Lost workday injury frequency, LWIF: The number of injuries resulting in an absence of more
than one day per million working hours.
, LWIF: ,

.
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Low-level waste = Nuclear waste which contains a small amount of radioactive materials, the
treatment of which requires only minor radiation protection measures.
= ,
,
.
Low-NOx burner = A burner type generating lower amounts of nitrogen oxides.
NOx ( ) = ,
.
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M
Majeur force - a superior force, an event that no human foresight could anticipate or which if
anticipated, is too strong to be considered e.g an industrial strike which leads to loss of profits.
Circumstances must be abnormal and unforeseeable, so that the consequences could not have
been avoided through the exercise of all due care (ERRA Legal Regulation Working Group
Terms);
, , ,
, , ,
, , , .
,
, (
);
Marginal Cost (MC(q)) - the cost of producing an additional (or the last) unit of good (e.g.:
incremental fuel cost of the next kWh of electricity given that a certain amount is already
produced).
(MC(q)) - (
) (,
, ,
).
Marginal generator the highest-cost generator needed to supply a given load
- ,

Market-based-price- a price set by the mutual decisions of many buyers and sellers in a
competitive market (ERRA Legal Regulation Working Group Terms);
- ,
(
);
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Market capitalisation: Number of shares at the end of the period x Share price at the end of the
period
: x

Market Clearing Price the price at which the quantity demanded by consumers equals the
quantity that producers are willing to supply to the market
(,
) - , , ,
,
Market Coupling Market coupling is a congestion management method where allocation of
cross-border transmission capacity is determined according to demand on the respective energy
markets. It is an implicit auction approach typically used at the day-ahead stage whereby for
every hour of operation either prices across the energy markets converge or all the available
transmission capacity is utilised, with power flowing towards the high price area.
In contrast, in explicit auctions the transmission capacity is auctioned to the market separately
and independently from the trading of electricity. Explicit auctions are a relatively simple method
of handling cross-border capacity, and are widely used across Europe. The capacity is normally
allocated in portions, through annual, monthly and daily auctions.
In implicit auctions, the capacity between bidding areas is made available to the spot price
mechanism operated by the power exchanges. If there is sufficient capacity, bids in the high price
market can, in effect, be matched against offers in the low price market. If there is sufficient
capacity the markets become one; if not, prices converge but remain different, and the gap
represents the cost of congestion.
Market coupling is only slightly different from market splitting, another form of implicit
auctions. Under market splitting one power exchange operates across several price zones,
whereas market coupling links together separate markets in a region.The effect is, however, the
same.
Market coupling can involve explicit capacity auctions or implicit capacity auctions. An explicit
auction is when the transmission capacity on an interconnector is auctioned to the market
separately and independently from the marketplace where electricity is auctioned. An explicit
auction is considered to be a simple method of handling the capacity on international
interconnections in Europe. The capacity is normally auctioned in portions, through annual,
monthly and daily auctions. An implicit auction is when the flow on an interconnector is taken
into account based on market data from the market-place in the connected markets. In implicit
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auctions, the capacity between bid areas is made available to the spot price mechanism in
addition to bid/offers per area, thus the resulting prices per area reflect both the cost of energy in
each internal bid area (price area) and the cost of congestion.
,

. ,
,
,
, .
, ,
.

, .
, ,
.

,
. ,
, ,
. ,
; , , ,
.
,
.
,
. , , .

.

,
.
.
, ,
.
,
.

/ ,
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()
( ) , .
Market monitoring: Regular and systematic review of the development of the energy markets;
also used in narrow sense as review of the functioning of wholesale markets.
:
,
.
Market Opening -
Market opening rate: Share of consumers who can choose between different suppliers.
: ,
.
Market Power
Market Rules: A document containing rules for the operation of an open electricity market. This
document must be prepared by a committee representing the interests of different market
participants, and must be approved by the regulatory bodies (independent regulatory agency or
ministries or both) representing the governments of all of the countries in which the electricity
market is located. If the electricity market exists in only one country then it is approved by only
one regulatory body.
.
,
. ,
, ,
( ,
, ), ,
.
,
.
Maximum Demand: This is determined by the interval in which the 60-minute integrated
demand is the greatest.
: , 60-
.
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Maximum Hourly Load: The highest amount of demand that is measured or expected to be
curtailed at a certain point in time.
: ,
, .
Methane, CH4: A hydrocarbon compound. Natural gas consists of more than 99 per cent
methane.
, CH4: . 99
.
Midwest Reliability Organization (MRO): The Midwest Reliability Organization (MRO) is

one of eight Regional Reliability Councils in the lower 48 that comprise NERC. Its members
include the following states: Minnesota, Wisconsin, Iowa, North Dakota, South Dakota,
Nebraska, Montana, Illinois and Upper Peninsula of Michigan.
(MRO):
(MRO)
48 , NERC. :
, , , , , ,
, .
Modern Equivalent Asset Value (MEAV): The cost of replacing the existing assets with assets
that serve the same function, and which a new entrant might be expected to employ as of today.
Such assets are likely to incorporate the latest available (proven) technology.
(MEAV):
, ,
.
, ()
.
Monopoly - the only seller with control over market sales (ERRA Legal Regulation Working
Group Terms);
- ,
( );
Multi-part tariffs: Consist of fixed, block wise variable and variable parts. A multi-part tariff in
contrast with a linear tariff is one in which the operator charges separate prices for different
elements of the service. These tariffs can be flexibly adjusted to the cost and the demand
characteristics.
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: , .
,
.
.
Multiple counting - Multiple counting is a situation where certain attributes from a single unit
of electricity are counted several times either for the same purpose or for several purposes
which are conflicting or overlapping. The use of attributes for several non-conflicting or
overlapping purposes is not classed as multiple counting. Multiple counting usually leads to
false information for participants in the electricity market and/or governments, and may lead
to unjustified income for certain actors. Energy policies and tracking systems should be
designed in a way as to minimise the risk of multiple counting.
- ,

, , ,
.

.

market () ,
.
,
.
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N
National electrical consumption (GWh): National net electrical consumption plus network
losses.
() .
.
National net electrical consumption (GWh): The sum of: (1) the amount of electrical energy
supplied by the electricity service utility to ultimate consumers of the network under
consideration, (2) the amount of net electrical energy produced or directly imported from abroad
by industrial or commercial concerns on the network and used directly for their own needs or to
directly supply ultimate consumers, and (3) the amount of electrical energy consumed by
establishments (offices, workshops, warehouses etc.) of the electricity service utilities, but
excluding the electricity absorbed by the auxiliaries of the power stations and the losses in the
main transformers of the power stations, and that consumed for pumping and the network losses.
(). ,
:
(1)

; (2) ,
-

; (3)
, (, , )
, ,
,
, ,
, .
Native Load Customers: The wholesale and retail customers on whose behalf the Transmission
Provider, by statute, franchise, regulatory requirements, or contract, has undertaken an obligation
to construct and operate the Transmission Providers system to meet the reliable electric needs of
such customers.
. ,
, ,
, ,
,
.
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Natural gas: Any hydrocarbons or mixture of hydrocarbons and other gases consisting primarily
of methane which at normal operating conditions is in a gaseous state.
: ,
,
.
Natural gas undertaking means any natural or legal person carrying out at least one of the
following functions: production, transmission, distribution, supply, purchase or storage of natural
gas, including LNG, which is responsible for the commercial, technical and/or maintenance tasks
related to those functions, but shall not include final customers (Directive 2003/55/EC);
,
, , : ,
, , , ,
, ,
/ , ,
( 2003/55/);
Natural monopoly - market condition where there are the limited technical possibilities, that are
defining the best service without the competition and the service provided by the natural
monopolist cannot be replaced by any of the others' (ERRA Legal Regulation Working Group
Terms).
Due to the economies of scale, the maximum efficiency of production and distribution is realized
through a single supplier.
,
, ,
, ,
- (
);
;
Net Asset Value (NAV): The value of assets after an adjustment for the depreciation of the
assets. Also referred to as the depreciated asset value.
(NAV):
.
.
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Net assets: Non-interest bearing assets + interest-bearing assets related to the Nuclear Waste
Fund - non-interest bearing liabilities - provisions (non-interest bearing assets and liabilities do
not include finance related items,tax and deferred tax and assets and liabilities from fair
valuations of derivatives where hedge accounting is applied)
: +
,
( ,
, ,
,
)
Net debt / EBITDA: Interest-bearing net debt/Operating profit + Depreciation, amortisation and
impairment charges
/ EBITDA: ,
/ + ,
Net debt / EBITDA continuing operations: Interest-bearing net debt/Operating profit

continuing operations + Depreciation, amortisation and impairment charges continuing
operations
/ EBITDA :
, /
+ ,

Net salvage - the difference between the value of an asset at the time of disposal (gross salvage)
and the costs incurred in retiring the plant;
-
( ) , ;
Net Transfer Capacity (NTC): Total Transfer Capacity minus Transmission Reliability Margin.
().
.
Network - a system of transmission and distribution lines cross-connected and operated to permit
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multiple power supply to any principal point on it. A network is usually installed in urban areas.
It makes it possible to restore power quickly to customers by switching them to another circuit
(ERRA Legal Regulation Working Group Terms)
-
,
.
.

, (
);
Net working capital: Current assets minus current liabilities.
:
.
Network exceptional investment: Investment resulting from exceptional situations, e.g. new
legal obligations.
:
, ,
.
Network losses (GWh): The network losses occurring in transmission and distribution networks
are calculated as the difference between the electrical energy supplied to the network and the net
electrical consumption.
(). ,
. ,
, .
Network reliability: An aspect of the quality of electricity supply related to the ability of the
network to continuously meet the demand from customers.
: ,
.
Network replacement investment: All investment related to replacement of aged (technically or
economically) equipment.
: ,
( ) .
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New interconnector means an interconnector not completed by the date of entry into force of
this Regulation (Regulation (EC) No. 1228/2003).
,
( () 1228/2003);
New infrastructure means an infrastructure not completed by the entry into force of this
Directive (Directive 2003/55/EC)
,
( 2003/55/);
Nitrogen oxides: NO and NO2 are produced during the combustion of fuel at power plants.
: NO NO2 .
Nodal (or locational marginal) Pricing - A type of network pricing where the prices are given
for network nodes (i.e. where supply or demand points connect to the network) and charges
between two nodes on the grid is calculated implicitly from the price differentials of the two
nodes in question.
( ) -
, (..,
),
.
Nominal Pricing - the price of a product or service in terms of current price levels, not adjusted
for the effects of inflation
- ,
,
Non-controllable cost: Cost not subject to influence at a given level of managerial
responsibility, e.g. allocated overheads from another part of the organisation.
: ,
,
.
Non-discriminatory access to services - an often quoted general requirement that basic goods
and services (such as electricity) should be accessible for all consumers
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-
, ( )

Non-household customers means any natural or legal persons purchasing electricity which is not
for their own household use and shall include producers and wholesale customers
,
,
( 2003/54/);
Non-linear pricing - the price for a unit of a product varies with the quantity chosen;
-
;
Non-load-related expenditure (NLRE): Expenditure, usually capex, which is related to such
aspects as the replacement of life-expired assets, network control and information gathering
facilities, performance standards, and new regulatory or legal requirements
(NLRE): ,
, ,
, , , ,
.
Non-recurring items: Mainly capital gains and losses

:
Non-technical losses - losses due to stealing electricity or gas leakage as a result of accidents
- ,

Non transaction oriented tariff: Equivalent to point of connection tariff or nodal tariff, this
tariffication methodology divides the overall transmission system costs exclusively to separate
connection fees (or network access fees) for the producer and the consumer. Thus, the connection
fee for an eligible customer remains the same, irrespective of a change of supplier.
.
. ,

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( )
. ,
.
Nord Pool: The Nordic electricity exchange.
: .
North American Electric Reliability Council (NERC): The organization certified by the
Commission as the reliability organization for the nations bulk power grid. NERC consists of
eight Regional Reliability Councils in the lower 48 states. The members of these Councils are
from all segments of the electricity supply industry - investor-owned, federal, rural electric
cooperative, state/municipal, and provincial utilities, independent power producers, and power
marketers.
- (NERC): ,
,
. NERC
48 .
, ,
,
/,
,
.
Notified Transmission Flow (NTF): In a studied time frame, the portion of Net Transfer
Capacity that is occupied by already accepted transfer contracts.
().
,
.
nTPA: negotiated third-party access.
nTPA: .
Nuclear fuel: Material containing fissile nuclides which, when placed in a reactor, enables a selfsustaining nuclear chain reaction.
: , ,

.
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Nuclear power plant: A power plant where energy is generated by a controlled nuclear fission
reaction.
: ,
.
Nuclear waste: The waste containing radioactive matter created at nuclear plants.
: , ,
.
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O
Obligations on suppliers or distributors paid for by customers/Portfolio standards: Energy
saving obligations for energy utilities without the release of tradable certificates demonstrating
the implementation of interventions. Portfolio standards may include also obligations for
renewables.
,
/ :

, .

.
Oligopoly a market dominated by a very few sellers who account for a large proportion of
output
- , ,

Open access - access to the electric transmission system by any legitimate market participant,
including utilities, independent power producers, cogenerators, and power marketers
() -
, ,
,
(
);
Operating transmission line An internal 400 kV network connection of a country, and/or an
interconnected line >= 100 kV.
400 kV
/ >= 100 kV
..
Operating expenses - expenses related to the operation and maintainance of the utility plant and
the provision of services to customers
- ,
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;
Operation and maintenance expenses - costs that relate to the normal operating, maintenance
and administrative activities of a business (ERRA Legal Regulation Working Group Terms);
- ,
,
( );
Operation in parallel regimes - when power systems of two or more countries are working in
parallel (ERRA Legal Regulation Working Group Terms);

(
);
Opex: Operating expenditure. Fixed and variable operating and maintenance costs; in the
regulatory context, depreciation is usually specified separately.
Opex ( ): .
;
.
Optimal deprival value: A method for asset valuation that recognizes that as a result of being
deprived of an asset, the economic value forgone may be less than the value based on the
depreciated replacement costs. The optimal deprival value is also based upon the asset value that
is consistent with the prices that would prevail in a competitive market, and is defined as the
minimum between the replacement cost of an asset and the valuation of that asset (on a cash-flow
basis) given market prices.
: ,
,
, .
,
, ,

( ) .
Other items effecting comparability: Includes effects from financial derivatives hedging future
cash-flows where hedge accounting is not applied according to IAS 39 and effects from the
accounting of Fortums part of the Finnish Nuclear Waste Fund where the asset in the balance
sheet cannot exceed the related liabilities according to IFRIC interpretation 5.
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, :
,
, 39,
[ , ]
,
5 IFRIC
[ ].
Outage - time during which service is unavailable from a generating unit, transmission line, or
other facility (ERRA Legal Regulation Working Group Terms);
- ,
, (
);
Overload - the flow of electricity into conductors or devices when normal load exceeds capacity
- ,
(
);
Ownership unbundling - the separation of generation, transmission, and distribution
transactions within a vertically integrated utility by ownership rearrangement
- ,

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P
Payout ratio, %: Dividend per share/Earnings per share x 100
, , % = /
x 100
Payout ratio continuing operations, %: Dividend per share continuing operations/Earnings per
share continuing operations x 100
, , ,
%: , / ,
x 100
Peak demand - maximum power used in a given period of time (ERRA Legal Regulation
- ,
( );
Peak-load power: Electricity generation required to meet peak-load demand for electricity.
: ,
.
Peat: Soil material consisting of partially decomposed organic matter, formed by the slow decay
of aquatic and semi-aquatic plants in swamps and bogs; used as fuel in energy production.
: ,
,
,
.
Peer reivew

Performance Benchmarking: Scheme that allows to compare the impact of energy efficiency
performance across multiple buildings or manufacturing plants or across similarly situated
residential customers (also known as Peer-to-peer comparison). The term can also be referred to
comparison of different utilities performance. In this case, using a set of predetermined
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indicators of energy efficiency, the regulator can compare the progress of a given utility against
others and benchmark its success, essentially ranking utilities implementation of energy
efficiency programs. Regulators may provide incentives for high-ranking utilities and
disincentives for low ranking utilities.
:
,

,
( ).
.
,
, ,
, ,
.

,
.
Petition - a written application asking for relief or remedy (ERRA Legal Regulation Working
Group Terms);

( );
Physical load flow between neighbor countries (MW): The balance of the physical load flows,
measured at 3 and 11 a.m. (Central European Time) at the cross-frontier substations of
transmission lines (>= 110 kV). In general, a unique metering point is used, in agreement
between the partners.
(MW):
, 3:00 11:00 (
)
(>= 110 kV). , ,
.
Plant - a facility containing prime movers, electric generators, and other equipment for producing
electric energy (ERRA Legal Regulation Working Group Terms)
- , ,

( );
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Portfolio theory (finance): A theory on how risk-averse investors can construct portfolios in
order to optimize market risk for expected returns. According with this theory it is not enough to
look at the expected risk and return of one particular stock. An investor can obtain the benefits of
diversification investing in more than one stock. Therefore it is possible to obtain an efficient
frontier of optimal portfolios offering the maximum possible expected return for a given level of
risk.
(): ,
,
.
.

. ,
,
.
Post stamp pricing a type of network pricing when the cost or re-dispathing is divided evenly
among all market participants
- ,

;
Potential MWh Change: The potential total annual change in energy consumption (measured in
MWh) that would result from the deployment of demand response programs. It reflects the total
change in consumption if the full demand reduction capability of the program were deployed, as
opposed to actual MWh change during the year.
:
( )
. ,
,
.
Potential Peak Reduction: The potential annual coincident peak load reduction (measured in
megawatts) that can be deployed from demand response programs. It represents the load that can
be reduced either by the direct control of the utility system operator or by the consumer in
response to a utility request to curtail load. It reflects the installed load reduction capability, as
opposed to the Actual Peak Reduction achieved by participants, during the time of annual system
peak load.
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( ),
. ,
,

.
,
.
Power grid - a network of power lines and associated equipment used to transmit and distribute
electricity over a geographic area (ERRA Legal Regulation Working Group Terms);
-
,
( );
Power plant - a generating station where electricity is produced (ERRA Legal Regulation
- ,
( );
Power pool - two or more interconnected electric systems that agree to coordinate operations
- ,
(
);
Power Pool: An entity established to coordinate short-term operations to maintain system
stability and achieve least-cost dispatch. The dispatch provides backup supplies, short-term
excess sales, reactive power support, and spinning reserve. Historically, some of these services
were provided on an unpriced basis as part of the members' utility franchise obligations.
Coordinating short-term operations includes the aggregation and firming of power from various
generators, arranging exchanges between generators, and establishing (or enforcing) the rules of
conduct for wholesale transactions. The pool may own, manage and/or operate the transmission
lines ("wires") or be an independent entity that manages the transactions between entities.
(). ,

.
, ,
.

.
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(
) .
/ ()
,
.
Power purchase agreement - this refers to a contract entered into by an independent power
producer and an electric utility. The power purchase agreement specifies the terms and conditions
under which electric power will be generated and purchased. Power purchase agreements require
the independent power producer to supply power at a specified price for the life of the agreement.
While power purchase agreements vary, their common elements include: specification of the size
and operating parameters of the generation facility; milestones in-service dates, and contract
terms; price mechanisms; service and performance obligations; dispatchability options; and
conditions of termination or default (ERRA Legal Regulation Working Group Terms);
C - ,

.
, .
,

.
,
, :
;
, ; ;
; ;
(
);
Pressurized water reactor: A light-water nuclear reactor in which heat is transferred from the
reactor core to a heat exchanger via water kept under high pressure, so that high temperatures can
be maintained in the primary system without boiling the water. Steam is generated in a secondary
system.
, :
,
, ,
.
.
Price and revenue caps: price-cap is a criterion for the regulation of tariffs whereby a ceiling on
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tariff variations for certain services is set in advance over a pre-determined and generally longterm period. In its simplest version the price cap is given by the formula: t=p-x, where p is the
inflation rate and x is the rate of change of productivity. Revenue cap regulation attempts to do
the same thing, but for revenue rather than prices.
:
,

.
: t=p-x, ,
.
, , .
Price cap regulation a method of setting a utility distribution company's rates whereby a
maximum allowable price level is established by regulators, flexibility in individual pricing is
allowed, and where efficiency gains can be encouraged and captured by the company;
-
,
,
,
,
Price control period: Another term for regulatory period.
: .
Price discrimination: A seller price discriminates when it charges different prices to different
buyers. Price discrimination means that consumer surplus can be appropriated, and as long as the
cost of marketing is less than the extra revenue than it is advantageous to the company. In this
case the marginal revenue curve becomes identical with the demand curve. Price discrimination
can be of three types. First-degree, sometimes also known as perfect price discrimination entails
the complete appropriation of consumer surplus as the monopolist is supposed to be able and
price individually by customer, so that customers ex post are in theory left indifferent to
purchasing. First-price price discrimination assumes that the discriminating monopolist knows
the demand curve point by point. Second-degree price discrimination, which is most commonly
observed in practice, assumes that the monopolist in able to separate chunks of customers as a
function of their demand levels, so that quantity discounts can be applied. This is perhaps the
most common form of price discrimination applied to the utility and commodity realms. Finally,
third-degree price discrimination assumes that the monopolist can differentiate prices by group of
customers, for instance the young vs. the elderly, rich vs. poor and so on. An instance of such
behaviour is observed, for instance, in the field of student discounts for travel, libraries,
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conferences and so on as opposed to inflated prices applied for the same identical services to
higher-wage professionals, institutions, and corporations.
: ,
. ,
,
, .
.
. ,

, ,
,
.
, .
,
, ,
,
. , ,
, .
, ,
, , ,
, , .. , ,
, ,
..,
, .
Price discrimination when different consumer groups face different prices
-

Price/earnings (P/E) ratio: Share price at the end of the period/Earnings per share
/ (P/E): /

Price Responsive Demand Response: All demand response programs that include the use of
time-based rates to encourage retail customers to reduce demands when prices are relatively high.
These demand response programs may also include the use of automated responses. Customers
may or may not have the option of overriding the automatic response to the high prices.
: ,
, ,
100
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, .

. ,
.
Process steam: Steam used for thermal energy for industrial purposes.
:
.
Productive (or X-) efficiency - whether a given level of output is produced in a least costly way,
or not;
( X-) -
, ;
Producer: (a) an independent company that generates electricity and has no transmission or
distribution activities or (b) an undertaking that generates electricity and is independent, in
management and accounting terms, from undertakings involved in transmission and distribution
activity.
. ) , ,
, )
, ,
,
.
Producer means a natural or legal person generating electricity (Directive 2003/54/EC);
,
( 2003/54/);
Production - the act or process of generating electric energy (ERRA Legal Regulation Working
Group Terms);
- (
);
Provisions: A provision is a liability for which the outflow of economic resources is of an
uncertain timing or amount.
: ,
,
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, .
Prudency test: In the regulatory context, an approach that provides a regulator with a set of
criteria to assess, on an ex post basis and/or an ex ante basis, the prudence of an investment and
whether it should be included in the regulatory asset base.
: ,
, /
,
.
Public law - is the set of legal principles governing the exercise of power by public authorities.
Public law remedies are those procedures by which citizens can challenge the fairness or legality
of their decisions (ERRA Legal Regulation Working Group Terms);
,
.

, ,
(
);
Public service - concept that embraces both bodies providing services and the general-interest
services they provide. Public-service obligations may be imposed by the public authorities on the
body providing a service (airlines, road or rail carriers, energy producers and so on), either
nationally or regionally (ERRA Legal Regulation Working Group Terms);
,
, .

( , ,
),
( );
Public Service Obligations
Public utility - a utility operated by a non-profit governmental or quasi-governmental entity.
Public utilities include municipal utilities, cooperatives, and power marketing authorities (ERRA
,
-
.
,
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( );
Publicly owned utilities - municipal utilities (utilities owned by branches of local government)
and/or co-ops (utilities owned cooperatively by customers) (ERRA Legal Regulation Working
Group Terms);
-
( ,
) / ( ,
) (
);
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Q
Qualified (eligible) customers: Customers who have the legal capacity to conclude supply
contracts with supply undertakings, in accordance with Articles 17 and 18 of Directive 96/92/EC.
. ,
-
17 18 96/92/EC.
Quality adjusted pricing

Quasi-governmental organization: An entity that is treated by national laws and regulations to

be under the guidance of the government, but also separate and autonomous from the
government. While the entity may receive some revenue from charging customers for its services,
these organizations are often partially or majorly funded by the government.
-
:
,
,
. ,
,
,
.
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R
Radioactivity: The emission of particle or electromagnetic radiation from atomic nuclei and the
decay into nuclei with less energy.
:
.
Ramsey pricing: Under Ramsey pricing the marks ups over incremental costs reflect the
respective demands of users and consumers for the services and facilities concerned. It is a
version of price discrimination in which if resale could be prevented, consumers in different
markets with different elasticities could be charged different prices. However, the prices are set
so as to yield only normal profits, so the prices are less than under unregulated price
discrimination. Under Ramsey pricing distortions from pricing above marginal cost are
minimised but not eliminated because consumers with relatively inelastic demands pay the
highest prices. Ramsey pricing is sometimes observed in public choice situations whereby goods
or services that are inelastically demanded bear the highest rate of tax. This is in order to
minimise distortions from first-best marginal cost allocation and for the public sector, institution,
or firm to at least break even. It is interesting to note that some taxes that are typically touted as
environmental or behaviour-inducing are in fact nothing else than Ramsey taxes because they
do not aim at correcting behaviour at all, but just at maximising revenue without distorting the
economy (or sector) too badly. For instance, tobacco and alcohol duties, airport taxes that are not
directly linked to the environment, and road/petrol taxes that are levied ex-ante and one-off but
not marginally and not to reduce any bad behaviour at source but just to raise funds, are typical
examples of Ramsey taxes in disguise.
:

.
, , ,

. ,
, ,
.
,
,
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.
,
. ,

, .
, ,
,
,
,
( ). ,
, ,
, /,
,
,
.
Rate Base: The value of property upon which a utility is permitted to earn a specified rate of
return as established by a regulatory authority. The rate base generally represents the value of
property used by the utility in providing service and may be calculated by any one or a
combination of the following accounting methods: fair value, prudent investment, reproduction
cost, or original cost. Depending on which method is used, the rate base includes cash, working
capital, materials and supplies, and deductions for accumulated provisions for depreciation,
contributions in aid of construction, customer advances for construction, accumulated deferred
income taxes, and accumulated deferred investment tax credits. / the value of investments on
which a utility is given an opportunity to earn a reasonable rate of return/.
. ,

, . ,
, ,
,
: ,
, , .
,
, , ,
, ,
, .
/ ,
/.
Rate of Return the profit a firm earns expressed as a percentage of the assets a firm owes
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- , ,
,
Rate of Return Enhancement (also known as Annual Earnings Assessment Proceeding

(AEAP) Incentive): System of incentives earned by a utility based on a portion of the net present
value of the savings achieved by ratepayers participating in energy efficiency programs.
(
(AEAP)): ,
, ,
,
.
Rate-of-Return Regulation (RoRR) - a method of setting a utility distribution company's rates.

Under RoRR utilities are allowed to recover their operating expenses, taxes and depreciation,
plus are provided the opportunity to earn a fair rate of return on the assets utilized (i.e. rate base)
in providing service to their customers;
(RoRR)-
.
RoRR,
,
,
(.. )
Real Price the price of a product or service adjusted for the effects of inflation
- ,
Real Time Pricing (RTP): A retail rate in which the price for electricity typically fluctuates
hourly reflecting changes in the wholesale price of electricity. RTP prices are typically known to
customers on a day-ahead or hour-ahead basis.
(RTP): ,
,
. RTP
.
Rebalancing ratio: The relative price ratio comparing domestic to industrial tariffs; i.e. the price
of domestic consumption as percentage of the industrial customers price.
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:
, ..
.
Re-dispatching the TSO rearranges the the pattern of intakes (~generation) and withdrawals
(~consumption) in order to increase or decrease flows on a given transmission line segment
- TSO (~ ) (~
),

Regional Transmission Organization (RTO): An organization with a role similar to that of an
independent system operator but covering a larger geographical scale and involving both the
operation and planning of a transmission system. RTOs often run organized markets for spot
electricity.
(RTO): , ,
,
,
.
RTO
.
Regulated asset base (RAB): In the context of price regulation, measure of the net value of the
companys regulated assets. The companys regulated assets are usually defined as the tangible
assets involved in the provision of the regulated service. Sometimes they include a measure of the
companys net current assets.
(RAB):
.
,
.
.
Regulated third party access: A regulated system of access procedure, giving eligible customers
a right of access, on the basis of published tariffs for the use of the transmission and distribution
systems.
.
,
,
.
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Regulated tariff price defined by the regulator under the limited competition conditions, that
could be fixed, marginal, upper margin; or lower margin and upper margin simultaneously
,
, , ,
; (
);
Regulation - an activity to control or direct economic entities by rulemaking and adjudication
-
(
);
Regulation - regulator influences over the price and price making process within the competence
determined by the legislation and regulations, enacting the relevant regulations, supervision and
monitoring (ERRA Legal Regulation Working Group Terms).

,
, ,
( );
Regulatory accounts: A regulatory agency follows procedures that are periodically reviewed by
another government organization to ensure that resources are being used effectively and that the
agency is implementing public policy.
:
,
, ,
.
Regulatory asset value (RAV): The term used for the RAB in energy price regulation in Britain.
RAV is sometimes used outside the British context as another term for RAB.
(RAV): RAB
. RAV
RAB.
Regulatory fee - annual fee paid to the regulatory budget by the licensee for regulatory service
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,
(
);
Regulatory period: In the context of price control regulation, the period (normally a number of
years) for which some control on prices or revenues is set in advance. Also referred to as a price
control period.
:
( ),
. .
Regulatory review (regulatory lag): Length of time between when a company incurs a cost or
receives revenue and when the regulator responds to this by raising or lowering the companys
prices. Under price cap regulation, the review period is generally specified in the three to five
year range. Instead, under rate of return regulation the lag varies. Uncertainty about the length of
the lag can be an incentive for cost containment.
( ):
,
.

.
.
.
Related undertakings means affiliated undertakings, within the meaning of Article 41 of the
Seventh Council Directive 83/349/EEC of 13 June 1983 based on the Article 44(2)(g) (*) of the
Treaty on consolidated accounts (2), and/or associated undertakings, within the meaning of
Article 33(1) thereof, and/or undertakings which belong to the same shareholders

41 83/349/EEC 13 1983 ,
44(2)(g) (*) (2),
/ 33(1), /
, ( 2003/55/);
Reliability - electric system reliability has two components - adequacy and security. Adequacy is
the ability of the electric system to supply the aggregate electric demand and energy requirements
of the customers at all times, taking into account scheduled and unscheduled outages of system
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facilities. Security is the ability of the electric system to withstand sudden disturbances such as
electric short circuits or unanticipated loss of system facilities (ERRA Legal Regulation Working
Group Terms);
-
.

.
,

( );
Remote Customers: Customers in areas of the country which are expensive to serve with
electricity because, for example, they are sparsely populated island, peninsulas, or remote valleys.
This type of customer may or may not exist in ERRA countries.
: , ,
- , ,
, .
.
Renewable energy - energy that is capable of being renewed by the natural ecological cycle
- ,
( );
Renewable energy sources means renewable non-fossil energy sources (wind, solar, geothermal,
wave, tidal, hydropower, biomass, landfill gas, sewage treatment plant gas and biogases)

(, , , , , ,
, ,
) ( 2003/54/);
Renewable Resources: Renewable energy resources are naturally replenishable, but flowlimited. They are virtually inexhaustible in duration but limited in the amount of energy that is
available per unit of time. Some (such as geothermal and biomass) may be stock-limited in that
stocks are depleted by use, but on a time scale of decades, or perhaps centuries, they can probably
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be replenished. Renewable energy resources include: biomass, hydro, geothermal, solar and
wind. In the future they could also include the use of ocean thermal, wave, and tidal action
technologies. Utility renewable resource applications include bulk electricity generation, on-site
electricity generation, distributed electricity generation, non-grid-connected generation, and
demand-reduction (energy efficiency) technologies.
.
, (
). (,
)
, ,
. :
, , , .

, .
,
,
,

.
Rent In economic theory, economic rent is an analytic term employed to distinguish the
difference between the income earned by an input or factor of production, and the cost of the
factor of production.
-
, ,
, .
Replacement cost asset valuation: A method of valuing assets that values an asset using the cost
of replacing the asset with another asset (not necessarily the same) that will provide the same
services and capacity as the existing asset.
: ,
(
), ,
.
Reservation price - the maximum price that consumers are willing to pay for the given quantity
of product
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- ,

Reserve margin ratio of reserve generation and contracted import capacity
-

Reserves: In accounting means the shareholders equity except basic share capital. Equity
reserves can be created from shareholders contributions (e.g. legal reserve fund), from profit
(e.g. remuneration reserve) and other reserves (e.g. revaluation reserve, translation reserve).
: ,
.
(, ),
(, ), (,
, ).
Residual mix - The residual mix is the set of electricity attributes which have not otherwise
been attributed to electricity supplies. The residual mix therefore is a specific procedure to
combine implicit tracking with mechanisms of explicit tracking.
The use of a residual mix requires a system for explicit tracking held in a central registry.
After the allocation of the explicitly-tracked attributes, all units of electricity which are not
covered by explicit tracking can then be assigned with a default value for the required
attributes. This default value can be determined based on a statistical average, e.g. all power
generation in the respective country, corrected by all attributes which have been tracked
explicitly (this correction is the origin of the name residual mix). By applying this
correction, unintentional multiple-counting of attributes occurring when implicit and explicit
tracking are used in parallel can be largely avoided.
-
,
. ,
,
.

.
, ,
.
,
, ,
, ,
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( ).
, , ,
,
.
Response Time: The maximum notice and lead time that a demand response program sponsor
provides to demand response program participants prior to an economic or emergency demand
response event.
:
,

.
Restructuring - the reconfiguration of the vertically-integrated electric utility. Restructuring
usually refers to separation of the various utility functions into individually-operated and-owned
entities (ERRA Legal Regulation Working Group Terms);
-
.
( )
( );
Retail - sales of electric energy to the ultimate customer (ERRA Legal Regulation Working
Group Terms);
- (
);
Retail company - a company that is authorized to sell electricity directly to industrial,
commercial and residential end-users (ERRA Legal Regulation Working Group Terms);
,
,
( );
Retail Competition: A system under which more than one electric provider can sell to retail
customers, and retail customers are allowed to buy from more than one provider.
. ,
,
.
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Retail Price Index (RPI): [Charges are controlled by the formula RPI X]. UK RPI is expressed
as the percentage increase in the Retail Price Index in the year to the November before the price
regulation year.
(RPI): [ RPI X].
RPI
,
.
Return on assets: In the price regulation context, it generally means the amount of money
derived from multiplying the allowed cost of capital by the value of the regulatory asset base.
Also referred to in the regulatory context as the return on capital (employed).
:
,
.
() .
Return on capital employed: See rate of return.
: . .
Return on equity (ROE) - a measure of how well a company used reinvested earnings to
generate additional earnings: ROE equals to the after-tax income divided by total equity and
expressed as a percentage;
(ROE) - ,

: ROE ,
,
Revenue Cap means the limit to the revenue allowed to the TSO for provision of Transmission
Network Service, in each year of the Regulatory Period, where the limit is revised each year by
the change in a specified price index less (occasionally plus) an adjustment called X, or the final
X factor.
, TSO
,

( ) ,
-.
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Revenue requirement - a revenue level that enables the company to break even;
- ,
;
Risk premium on equity - Risk premium in general is the expected rate of return above the riskfree interest rate. In the equity market it is the returns of a company stock, a group of company
stock, or all stock market company stock, minus the risk-free rate. The return from equity is the
dividend yield and capital gains.
- , ,
.
, ,
.
.
Roll forward: A method to adjust the value of some aspect on a year-to-year basis. In a price
regulation context, it is often used to describe the procedure whereby the regulatory asset base is
adjusted on a year-to-year basis by e.g. adding in allowed annual capital expenditure, subtracting
annual depreciation and any disposals
-:
.
,
, ,
, .
RPI: The Retail Prices Index. The index of general consumer prices used in the UK.
RPI: .
.
RPI-X Regulation (Incentive Regulation). Means, in relation to the relevant regulated service
provider, a form of price regulation whereby the limit on the average price, or the total revenue,
allowed for the provision of the Regulated Service is fixed for a period (three or five years) and
the price limit depends on the change in a specified price index (eg the RPI in Britain) less
(occasionally plus) an adjustment called X or the Final X factor.
RPI-X ( ).
,
,
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, ( ).
(,
RPI), ( ) ,
-.
rTPA = regulated third-party access.
rTRA = .
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S
Security means both security of supply and provision of electricity, and technical safety;
,
( 2003/54/);
Security of Supply -
Securitization: An often discussed means of dealing with potential electric utility "stranded
costs" is securitization. Securitization refers to the creation of a financial security or bond that is
backed by a revenue stream pledged to pay the principal and interest of that security. This device
provides utilities an up-front, lump-sum payment from the sale of the security. Securitization
requires the creation of a transferrable property right to collect from the utility's ratepayers a
"customer transition charge" or through some other "non-bypassable" obligation placed on
ratepayers. The charge is usually, but not always, based on some portion of the utility's
"stranded" or uneconomic costs. If this option is exercised by the utility, the property right can be
transferred by the utility to a designated trustee, a "bankruptcy remote special purpose entity."
The trustee then issues a bond and pays the utility the cash proceeds from the sale of the security
in the financial market less transaction costs. The securitized bondholders then have the right to
collect the charge from the utility's customers that are obligated to pay it. The utility or
distribution company collects the customer charge from the customers and transfers the funds to
the trustee that then transfers it to the securitized bondholders. The cash proceeds the utility
receives should equal the discounted present value of the customer charge revenue stream.
( ).
.
,
, ,
.
.
,
(
) ,
. , ,
() .
,
(
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).

.

, .

, .

( ).
Service life the period of time between the installation of the unit or equipment and its
retirement for accounting purposes
-
.
Service value - the difference between the original cost of the asset and the estimated net salvage
to be recovered at retirement
-
,
Simple auction - Auctions constitute a market-based way of allocating an asset to those bidders
who value it the most. The participants (buyers and/or sellers) submit the bids for the good and
then the auction office determines which bids are accepted and which are not depending on the
goal of the auctioner (e.g.: maximizing revenue). There are many types of auctions depending on
the procedure of the bidding and the price that the winner has to pay.
-
, .
( / ) ,
, , ,
(:
). ,
, .
Single buyer: Any legal person who, within the system where he is established, is responsible for
the unified management of the transmission system and/or for centralized electricity purchasing
and selling.
. ,
119
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()
,
.
Small isolated system: Any system with consumption of less than 2500 GWh in the year 1996,
where less than 5% of annual consumption is obtained through interconnection with other
systems
- ,
2500 GWh 1996 , , 5%
.
Small particles: Small particles of less than 0.01 millimetre in diameter naturally present in the
atmosphere and created during combustion.
: 0,01
.
Smart grid: A smart grid delivers electricity from suppliers to consumers using digital
technology to save energy, reduce cost and increase reliability and transparency. Such a
modernized electricity network is being promoted by many governments as a way of addressing
energy independence, global warming and emergency resilience issues.
In principle, the smart grid is a simple upgrade of 20th century power grids which
generally "broadcast" power from a few central power generators to a large number of users, to
instead be capable of routing power in more optimal ways to respond to a very wide range of
conditions.
The conditions to which a smart grid, broadly stated, could respond, occur anywhere in the power
generation, distribution and demand chain. Events may occur generally in the environment (clouds
blocking the sun and reducing the amount of solar power, a very hot day), commercially in the power
supply market (prices to meet a high peak demand exceeding one dollar per kilowatt-hour), locally on the
distribution grid (MV transformer failure requiring a temporary shutdown of one distribution line) or in
the home (someone leaving for work, putting various devices into hibernation, data ceasing to flow to an
IPTV), which motivate a change to power flow.
Latency of the data flow is a major concern, with some early smart meter architectures allowing
actually as long as 24 hours delay in receiving the data, preventing any possible reaction by either
supplying or demanding devices.
:
, ,
.

,
, ,
.
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,
XX ,
,
,
.
, , , ,
,
. (
, ),
(
, -),
(
,
), (- ,
hibernation, IPTV),
.
, ,
() 24
,
, .
Sulphur dioxide, SO2: Generated in the combustion of fuels containing sulphur.

, SO2: , .
Sunk costs a cost that has been incurred and cannot be reversed (also referred to as "stranded
cost")
- ,
( )
Sustainable development: Development that fulfils the needs of present generations without
compromising the ability of future generations to fulfil their own needs. Sustainable development
is considered to encompass three dimensions: environmental, social and economic.
: ,
,
. , :
, .
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Spinning Reserves: 1. The difference between the capability and actual output of generating
units, which are operating and connected to the electrical network. 2. The amount of unloaded
generating capability, on units that are in the generating mode and connected to the
interconnected system, which can be fully applied in 10 minutes.
: 1)
,
. 2) ,
, ,
10 .
Spot market: With respect to commodities such as oil, a term used to describe the international
trade in one-off cargoes or shipments, in which prices closely follow demand and availability.
With respect to electricity, short-term daily spot trading.
: , , ,
,
.

.
Standard cost approach: A method used by regulators to ensure that investments are procured
in an economic way and also to assess whether the capital expenditure should be included in a
network operators RAB. It is based on the prescription of maximum unit prices for investment
group components.
: , ,
, ,
, RAB (
) .
.
Storage facility means a facility used for the stocking of natural gas and owned and/or operated
by a natural gas undertaking, including the part of LNG facilities used for storage but excluding
the portion used for production operations, and excluding facilities reserved exclusively for
transmission system operators in carrying out their functions (Directive 2003/55/EC);
,
/ ,
, , ,
, ,

( 2003/55/);
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Storage system operator means a natural or legal person who carries out the function of storage
and is responsible for operating a storage facility (Directive 2003/55/EC);
,
,
( 2003/55/);
Straight-line depreciation: A method of depreciation under which the allocation of the cost of
the asset to accounting periods is constant.
: ,
.
Stranded Costs/Stranded Assets: Costs incurred by a utility, which may not be recoverable
under market-based retail competition. Examples are undepreciated generating facilities, deferred
costs, and long-term contract costs.
(). ,
.
, ,
, ,
.
Supplier - a person or corporation, generator, broker, marketer, aggregator or any other entity,
that sells electricity to customers, using the transmission or distribution facilities of an electric
distribution company (ERRA Legal Regulation Working Group Terms);
- , , ,
, ,
,
(
);
Supplier of Last Resort:
The supplier of electricity who provides electricity to Eligible
Customers in emergency situations when the supplier chosen by the Eligible Customers cannot
serve, e.g. because it has gone bankrupt. This type of supplier may or may not exist in ERRA
countries.
:
,
, , ,
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, - .
.
Supply means the sale, including resale, of electricity to customers (Directive 2003/54/EC);
,
( 2003/54/);
Supply: The delivery and/or sale of electricity to customers.
. () .
Supply:
The sale of electricity, usually including metering and billing, in contrast to other
activities such as generation, transmission, system operation and distribution.
: , ,
, ,
, , .
Supply undertaking means any natural or legal person who carries out the function of supply
,
( 2003/55/);
System means any transmission networks, distribution networks, LNG facilities and/or storage
facilities owned and/or operated by a natural gas undertaking, including linepack and its facilities
supplying ancillary services and those of related undertakings necessary for providing access to
transmission, distribution and LNG (Directive 2003/55/EC);
, ,
/ , /
, ,
,
, ,
( 2003/55/);
System (electric) - physically connected generation, transmission, and distribution facilities
operating as a single unit (ERRA Legal Regulation Working Group Terms);
() - ,
, (
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);
System Benefits Charge/Public Benefits Fund: A charge/surcharge on a consumer's bill from

an electric distribution company to pay for the costs of certain public benefits such as energy
efficiency or low-income assistance.
/ : /
,
, ,
.
System data
System users means any natural or legal persons supplying to, or being supplied by, a
transmission or distribution system (Directive 2003/54/EC);
,

( 2003/54/);
System users means any natural or legal persons supplying to, or being supplied by, the system
,
( 2003/55/);
Swap agreement: An international agreement to provide electricity transit services which are
defined by the delivery and receipt of energy at national borders, regardless of physical flows
within the transit country. For example, if transit country A receives electricity from B and
delivers it to C, a swap agreement enables A to collect payment for transit service even when
there is no physical flow of electrons from B to C.
.
(
)
. , B
,

B .
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T
Tariff - a document, approved by the responsible regulatory agency, listing the terms and
conditions, including a schedule or prices, under which utility services will be provided (ERRA
- , ,
, ,
(
);
Tariff basket: the basket of charges to which the annual regulatory price limits apply.
: ,
.
Tangible assets: See fixed assets.

: . .
Taxes and fees associated with enrgy use: Energy or energy-related CO2 taxes, pollution levies
and public benefits charges (imposing an energy tax on some energy users, in order to establish
public programs and funds for the promotion of energy efficiency).
, :
CO2,
(

).
Technical Losses - losses associated with the transmission of electricity

- ,
Technical standards: Standards for appliances, vehicles and buildings.
: ,
.
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Tender: Request for proposal to have an external party provide needed services or equipment.
The purpose is to promote competition, thus reducing the input price. The process can also
involve the sale of assets or licenses by the party issuing the announcement.
: ,
.
,
, .
, ,
Third Party Access

3rd Party Energy Efficiency Services: Energy efficiency utility providing energy efficiency
services, such as technical assistance and financial incentives. The 3rd party may be funded by an
energy efficiency charge to consumers (i.e. system benefit charge) on service provided by their
primary electric company.
One example is Efficiency Vermont (http://www.efficiencyvermont.com/pages/).
,
,
.

( , )
, .
Efficiency
Vermont
(http://www.efficiencyvermont.com/pages/).
Time-Based Rate (TBR): A retail rate in which customers are charged different prices for
different times during the day. Examples are time-of-use (TOU) rates, real time pricing (RTP),
hourly pricing, and critical peak pricing (CPP).
, (TBR): ,
.
: , (TOU),
(RTP), ,
(CPP).
Time-of-day pricing: Charges vary according to the time of day. The idea behind is simply to
vary the price of electricity in accordance with fluctuations in production costs. When the cost of
production is high, the price would also be high. Conversely, when the cost of production is low,
price would also be low. If time of day pricing is linked to underlying production cost linearly
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and to that only, then it does not amount to price discrimination. However, if its motives go
beyond cost reflectivity and into strategic behaviour, then time of day pricing might just be
another form of price discrimination (see Price Discrimination), for instance between business
and students (or commuters and leisurely trippers) in travel and access to facilities at peak times
(air, rail etc. time of day pricing in this case does not really reflect the differential cost of
running a train that is more or less full, but probably it just reacts to differential demand
behaviour and therefore is strictly related to third-degree price discrimination).
: .

. ,
. , ,
.
, .
,
,
(. ), ,
(
, )
( , .

, , ,
,
).
Time-of-use pricing: Charges differing between time periods e.g. peak load and base load.
:
, ,
.
Time-of-Use Rates: The pricing of electricity based on the estimated cost of electricity during a
particular time block. Time-of-use rates are usually divided into three or four time blocks per
twenty-four hour period (on-peak, mid-peak, off-peak and sometimes super off-peak) and by
seasons of the year (summer and winter). Real-time pricing differs from time-of-use rates in that
it is based on actual (as opposed to forecasted) prices which may fluctuate many times a day and
are weather-sensitive, rather than varying with a fixed schedule.
.

. ,
(, , , -),
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( ).
,
, ,
,
.
Total Transfer Capacity (TTC): The maximum feasible power exchange which can be
transmitted between the systems A and B reliably and without affecting the system security.
().
,
.
Trading volumes: Number of shares traded during the period in relation to the weighted average
number of shares during the period
: ,

Transaction oriented tariff: Equivalent to point-to-point tariff, this method of tarification
calculates a transmission fee on the basis of information about entry point (source) and exit point
(sink) of the electricity contract. Thus, if an eligible customer shifts from supplier A to supplier
B, the parties would have to recalculate the transmission fee depending on the location of the new
supplier.
, . -.

()
()
. ,
,
.
Transformer: Device that transforms the voltage level of electricity
: ,

Transit of electricity: Transit of electricity is a transmission of active energy from the exporting
system to the importing system through one or more transmission systems.
. -
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.
Transmission means the transport of electricity on the extra high-voltage and high-voltage
interconnected system with a view to its delivery to final customers or to distributors, but not
including supply (Directive 2003/54/EC);

, , (
2003/54/);
Transmission - the act or process of transporting electric energy in bulk (ERRA Legal Regulation
-
( );
Transmission and distribution (T&D) losses - losses the result from the friction that energy
must overcome as it moves through wires to travel from the generation facility to the customer.
Because of losses, the demand produced by the utility is greater than the demand that shows up
on the customer bills (ERRA Legal Regulation Working Group Terms);
- , ,
,
. -
, ,

(
);
Transmission and distribution (T&D) system - an interconnected group of electric
transmission lines and associated equipment for the movement or transfer or electric energy in
bulk between points of supply and points at which it is transformed for delivery to the ultimate
customers (ERRA Legal Regulation Working Group Terms);
-

,
(
);
Transmission (Network) Assets: The assets or as the case may be, the appropriate portion
thereof, required for the provision of the Transmission Network Service.
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() : ,
.
Transmission Asset Owner (TO): The body that owns the transportation system, and is
responsible for its long-term maintenance and development.
(TO): ,
.
Transmission company company which obtains the major portion of its natural gas operating
revenues from the operation of a natural gas transmission system and/or from mainline sales to
industrial customers
- ,
, ,
/

Transmission Congestion: Congestion of the Transmission Network means that the thermal,
voltage or stability limits of the Transmission Network are violated.
: ,
, .
Transmission lines - heavy wires that carry large amounts of electricity over long distances from
a generating station to places where electricity is needed. Transmission lines are held high above
the ground on tall towers called transmission towers (ERRA Legal Regulation Working Group
Terms);
- ,
,
.
,
( );
Transmission Losses: The energy lost in the process of transporting power via the Transmission
Network.
:
.
Transmission Reliability Margin (TRM): A portion of Total Transfer Capacity that is reserved
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to cover the forecast uncertainties or tie-line power flows due to imperfect information from
market players and unexpected real time events.
() ,

-
.
Transmission Service: The following services provided by the TSO: the Transmission Network
Service; the Transmission System Service; the Transmission Congestion Service; and the
Transmission Connection Service.
: , TSO:
; ; ;
.
Transmission system operator means a natural or legal person responsible for operating,
ensuring the maintenance of and, if necessary, developing the transmission system in a given area
and, where applicable, its interconnections with other systems, and for ensuring the long term
ability of the system to meet reasonable demands for the transmission of electricity;
,
, , ,
, ,

(
2003/54/);
Transmission Use of Network Charge: The charges that provide the allowed revenue to the
TSO for the provision of the Transmission Network Services.
: ,
TSO .
Transmitting utility - this is a regulated entity which owns, and may construct and maintain,
wire used to transmit wholesale power. It may or may not handle the power dispatch and
coordination functions. It is regulated to provide non-discriminatory connections, comparable
service and cost recovery (ERRA Legal Regulation Working Group Terms);
- ,
, , ,
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.
.

,
( );
Two-part tariffs - the tariff consists of a fixed part A which is paid independently from the
quantity purchased, and a variable part B(q) that is proportional to quantity
- , A
, B(q)

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U
Unbundling - disaggregating electric utility service into its basic components and offering each
component separately for sale with separate rates for each component. For example, generation,
transmission and distribution could be unbundled and offered as discrete services (ERRA Legal
Regulation Working Group Terms); the functional separation of generation, transmission, and
distribution transactions within a vertically integrated utility
-
,
. , ,

( );
,
;
.

. ,
,
.
Universal service - electric service sufficient for basic needs (an evolving bundle of basic
services) available to virtually all members of the population regardless of income (ERRA Legal
- ,
( ),
, (
);
. ,
( ),
, .
Upstream pipeline network means any pipeline or network of pipelines operated and/or
constructed as part of an oil or gas production project, or used to convey natural gas from one or
more such projects to a processing plant or terminal or final coastal landing terminal
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, /
,
,
( 2003/55/);
Use of system (UOS) charge: this is set to recover the cost incurred by network operators to
make their facilities available to users. It can be calculated on either a short or a long run cost
basis and, especially for transmission networks, may result from complex optimisation processes.
In the UK, transmission UOS charges are locational and are paid by both generation and load,
although in different proportions.
(UOS): ,
, ,
.
, , ,
.
UOS ,
, .
Utility - a regulated entity which exhibits the characteristics of a natural monopoly. For the
purposes of electric industry restructuring "utility" refers to the regulated, vertically-integrated
electric company. "Transmission utility" refers to the regulated owner/operator of the
transmission system only. "Distribution utility" refers to the regulated owner/operator of the
distribution system which serves retail customers (ERRA Legal Regulation Working Group
Terms);
- ,
.

,
.
"
"
/ . "
" /
, (
);
. ,
,
, -
.
,
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. -
, .
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V
Variable cost production expenses that are dependent on the level of output
- ,
Variable (or marginal) tariff: a tariff that varies with the level of consumption. Should ideally
reflect variable, if not marginal, cost.
() : ,
. ,
.
Vertical Foreclosure /
Vertical integration - an arrangement whereby the same company owns all the different aspects
of making, selling, and delivering a product or service. In the electric industry, it refers to the
historically common arrangement whereby a utility would own its own generating plants,
transmission system, and distribution lines to provide all aspects of electric service (ERRA Legal
- ,
,
.
,
, ,
(
);
Vertically integrated undertaking means an undertaking or a group of undertakings whose
mutual relationships are defined in Article 3(3) of Council Regulation (EEC) No 4064/89 of 21
December 1989 on the control of concentrations between undertakings (1) and where the
undertaking/group concerned is performing at least one of the functions of transmission or
distribution and at least one of the functions of generation or supply of electricity
,
, 3(3)
(EEC) No 4064/89 21 1989
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(1), / ,
, , ,
( 2003/54/);
Vertically integrated undertaking means a natural gas undertaking or a group of undertakings
whose mutual relationships are defined in Article 3(3) of Council Regulation (EEC) No 4064/89
of 21 December 1989 on the control of concentrations between undertakings (1) and where the
undertaking/group concerned is performing at least one of the functions of transmission,
distribution, LNG or storage, and at least one of the functions of production or supply of natural
gas (Directive 2003/55/EC);

, , 3(3)
(EEC) No 4064/89 21 1989
(1), /
, , , ,
, ,
( 2003/55/);
Vertically integrated undertaking: An undertaking performing two or more of the functions of

generation, transmission and distribution of electricity
. ,
, .
Voltage Control
Voluntary agreements: A form of self-regulation by the industry or other sectors, in addition to
mandatory requirements; they can consist in the fixation of non binding targets on energy
efficiency improvements, emission limits, etc.
:
, ;

,
, ..
VRS = Variable Returns to Scale: inputs and outputs vary in different proportions (increasing;
decreasing).
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VRS = :
(, ).
Vulnerable Customers:
Customers who lack the financial capability to pay for their
electricity. An ERRA country may or may not have a statute defining the income level at which
someone qualifies as vulnerable.
: ,
. ,
,
, .
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W
Weighted average cost of capital (WACC) an often used measurement of the cost of capital
(including both debt and equity)
(WACC) -
( , );
White Certificates: Mechanism consisting in the introduction of energy saving obligations for
energy utilities and in the release of tradable white certificates demonstrating the implementation
of interventions.
: ,
,
, .
Wholesale customers means any natural or legal persons who purchase electricity for the
purpose of resale inside or outside the system where they are established;
,

, ( 2003/54/);
Wholesale customers means any natural or legal persons other than transmission system
operators and distribution system operators who purchase natural gas for the purpose of resale
inside or outside the system where they are established (Directive 2003/55/EC);
,
,

, ( 2003/55/);
Wholesale power market - the purchase and sale of electricity from generators to resellers (who
sell to retail customers) along with the ancillary services needed to maintain reliability and power
quality at the transmission level (ERRA Legal Regulation Working Group Terms).
-
( )
,
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).
Working capital: Current assets and current liabilities. The term working capital is commonly
used as synonymous with net working capital.
: .
.
X
X factor: The expected productivity parameter used in RPI-X regulation, and in other similar
schemes, originally inspired to UK-style local loop call charges (in telecoms) regulation from the
mid-1980s.
X-: ,
RPI-X ,
()
80- .
Y
Yardstick Competition (Benchmarking) - Yardstick competition is a regulatory scheme used in
an uncertain environment that applies outside information about other, unrelated utilities to
regulate a monopolist in a given area.
(
) -
, ,
, ,

Z
Zero-sum game - A zero sum game occurs when any gain made by one player is exactly
balanced by losses to other players.
- ,
, ,
.
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