Contracts for differences

(CFD)
  A type of bilateral contract where the electric generation seller is paid a fixed amount over time which is a combination of the short-term market price and an adjustment with the purchaser for the difference. For example, a generator may sell a distribution company power for ten years at 6-cents/kilowatt-hour (kWh). That power is bid into Poolco at some low /kWh value (to ensure it is always taken). The seller then gets the market clearing price from the pool and the purchaser pays the producer the difference between the Poolco selling price and 6-cents/kWh (or vice versa if the pool price should go above the contract price).
  California Energy Comission. Dictionary of Energy Terms

Energy terms . 2014.

Look at other dictionaries:

  • contracts for differences — abbr CFD A term used in the Financial Services Act 1986 to describe cash settled (See cash settlement) instruments, e.g. FTSE 100 futures, FRAs, swaps and spread betting. Dresdner Kleinwort Wasserstein financial glossary …   Financial and business terms

  • contracts for difference — (CFDs) An agreement between two parties to exchange the difference between the opening price and the closing price of the contract, at the close of the contract, multiplied by the number of shares specified within the contract. A CFD is a margin… …   Law dictionary

  • United Nations Convention on Contracts for the International Sale of Goods — The United Nations Convention on Contracts for the International Sale of Goods (abbrev. CISG) [United Nations Convention on Contracts for the International Sale of Goods, Vienna, 11 April 1980, S.Treaty Document Number 98 9 (1984), UN Document… …   Wikipedia

  • Contracts (Rights of Third Parties) Act 1999 — Contracts (Rights of Third Parties) Act, 1999 Parliament of the United …   Wikipedia

  • Hedging contracts —   Contracts which establish future prices and quantities of electricity independent of the short term market. Derivatives may be used for this purpose.   U.S. Dept. of Energy, Energy Information Administration s Energy Glossary   ***   Contracts… …   Energy terms

  • Contract for difference — In finance, a contract for difference (or CFD) is a contract between two parties, typically described as buyer and seller , stipulating that the buyer will pay to the seller the difference between the current value of an asset and its value at… …   Wikipedia

  • contract for difference — contracts for difference (CFDs) An agreement between two parties to exchange the difference between the opening price and the closing price of the contract, at the close of the contract, multiplied by the number of shares specified within the… …   Law dictionary

  • Ethical implications in contracts — When creating a contract, a negotiator is not only doing so to reach an agreement between two or more parties, but to create an agreement that is durable; whereby parties of the contract are legally bound and committed to its promises (Wade and… …   Wikipedia

  • Cultural contracts — refer to the degree that cultural values are exchanged between groups. [1] It extends identity negotiation theory and uncertainty reduction theory by focusing defining the negotiation experience from the perspective of minority groups when… …   Wikipedia

  • Association for Intercollegiate Athletics for Women — The Association for Intercollegiate Athletics for Women (AIAW) was founded in 1971 to govern collegiate women s athletics in the United States and to administer national championships. It evolved out of the Commission on Intercollegiate Athletics …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.