Category: Electricity

PPAs are signed for instance when a consumer enters into an agreement to purchase electricity from an IPP or when the main utility (IEC in the case of Israel) purchases electricity from an IPP

Means the maximum rate of energy production that the purchasing utility is obligated to purchase under the applicable power purchase agreement

A power pool consists of two or more utilities who combine their resources to better meet their individual needs. These resources can include generating facilities, transmission system access, emergency response capability and even accounting and billing databases. This pooling of resources allows utilities to keep costs low and insure higher reliability through “strength in numbers”. Pooling is an accepted, desirable and often mandatory efficiency strategy in regulated energy markets, but in deregulated markets it is usually a voluntary activity

Used to encourage electricity conservation. The meter works in a similar way to the cellular talk-man where credit is purchased in advance and there is no need for a monthly payment. The consumer types a code into his home meter which enables him to consume the amount of pre-paid electricity. IEC expects that 10% of consumers will use such a pre-paid meter, similar to the world average. Pre-payment is also a solution against consumers who don’t pay their electricity bill

The difference between electricity input and output as a result of an energy transfer between two points.