05.07.2009

Electricity obtained from nuclear, hydro and non-thermal renewables, but not from fossil fuels

Means the price at which oil products are sold to end users in countries such as the UK and Germany. The price of gas oil and fuel oil in such markets are popular escalators in gas pricing clauses, as from the buyers standpoint these are the products with which natural gas actually competes in the marketplace

Until recently many natural gas purchase agreements had a price ceiling and floor so that although a certain indexation was set to the base price for long term contracts, the price could never go up or down beyond a certain level. Producers are far more reluctant today to agree to such terms

A cap, or limit, on the price which may be charged for a commodity as is also sometimes the case in gas sales contracts