About NorWatt> Power Terminology

Clearing

With clearing counterparty risk is minimized as Nord Pool Clearing ASA enter as counterpart for both buyers and sellers. Each part has to pledge collateral to Nord Pool Clearing to cover potential losses in their portfolio.

Forward

Forward contracts traded on Nord Pool are standardized contracts divided into months, quarters and years. A Forward Financial Electricity Contract establish rights and obligations between the Counterparties to carry out Expiry Market Settlement and Spot Reference Cash Settlement.

MW

1 MW is equivalent to the effect of the 1000 electrical ovens of 1000 W each. The maximum effect measured in Norway is 23 054 MW (February 5th 2001)

TWh

An electrical oven of 1000 W which is on for one hour use an energy amount equivalent to 1 kWh. 1 TWh = 1 billion kilowatt hours (kWh), which is approximately the annual electricity consumption in a Norwegian town with 50 000 inhabitants.