Investor Archive / Shareholder Services / Glossary
A
ADS
American Depository Share
AGM
Annual General Meeting
ADM
AccountsModernisation Directive, an EU directive requiring, amongst other provisions, consideration of the disclosure of non-financial measures of corporate performance in annual reports
APB
Accounting Practices Board
ASB
Accounting Standards Board (UK)
The Authority
The Gas and Electrical Markets Authority, the UK regulatory body (UK)
B
BETTA
British Electricity Trading and Transmission Arrangemnents, for a Great Britain-wide electricity market, which took effect from the 1 April 2005 (UK).
BCF
Billion cubic feet
Bear
An investor who believes a security, a sector or the overall market is about to fall in value; opposite of bull.
Bear market
A prolonged period in which investment prices fall, accompanied by widespread pessimism.
Billion
One thousand million (1,000,000,000)
Blue chip
The stock of a large, national company with a solid record of stable earnings and dividend growth.
BRIC
Business Risk and Investment Committee, the risk management body in each group business.
British Isles
The United Kingdom and The Republic of Ireland
Brokers’ forecasts
Estimates of future company performance issued by stockbrokers and bank analysts.
BTU
British Thermal Units, a measure of calorific potential applied to natural gas (and other sources)
Bull
An investor who believes a security, a sector or the overall market is about to rise in value; opposite of bear.
Bull market
A prolonged period in which investment prices rise faster than their historical average.
C
CCGT
Combined cycle gas turbine, the type of gas-fired generating plant used in most thermal power stations
Churn
the turnover of existing customers leaving, and new customers joining, the company's customer list
CI
Customer Interuptions, a regulatory measure of distribution system reliablity , essentially an index driven by the proportion of connected customers suffering an interruption to their supply (UK)
Closed period
The period prior to a company’s release of its interim or preliminary results, during which the directors and other insiders are not permitted to trade in the shares of their company. Normally two months.
CML
Customer Minutes Lost, a regulatory measure of the extent to which access to electricity was not maintained by the distribution system, essentially an index driven by the aggregate minutes off-supply related to the number of connected customers (UK).
CO2
Carbon dioxide
Combined Code
Guidelines setting out corporate governance principles for UK listed companies (UK).
Company (or company)
Scottish Power plc
Competition Commission
The UK regulatory body concerned with competition policy and the abuse of market poer (UK).
Consensus forecasts
A market average of stockbrokers’ and bank analysts’ forecasts of the future financial performance of a company.
Convertible bond
Bond that can be converted into shares of the issuing company.
CR
Corporate Responsibility, also sometimes referred to as corporate social responsibility, an aspect of the business community's consideration of social, environmental and ethical issues.
CUSIP number
A nine character number that uniquely identifies a particular security. CUSIP is an acronym for the Committee on Uniform Securities and Identification Procedures, the standards body which created and maintains the classification system.
D
DFI
Derivative Financial Instrument
Distribution
The transfer of electricity from the transmission system to customers (US equivalent is Power Distribution).
Dividend cover
Earnings per share divided by dividends per share, to assess the Group’s ability to pay dividends.
DSM
Demand Side Management, encouraging customers to reduce their electricity consumption.
DTI
The Department of Trade and Indusrty, a UK government department which, among other responsibilities, has a leading role the UK Government oversight of energy policy (UK).
E
Earnings
Profit for the year after tax and minority interests.
Earnings per share (eps)
Earnings divided by the average number of ordinary shares outstanding. Diluted earnings per share adjusts the number of shares to reflect the potential number of shares outstanding after the exercise of options or convertible debt.
EBITA
Earnings before interest, tax and amortisation of intangible fixed assets.
EBITDA
Earnings before interest, tax, depreciation of tangible fixed assets and amortisation of intangible fixed assets.
EC
European Commission, the administartive arm of the European Union institutions.
EEC
Energy Efficiency Commitment, a requirement placed on licensed suppliers to promote the efficient use of energy (UK).
EGM
Extraordinary General Meeting. A meeting of shareholders which may be called to approve special events such as a take-over or major acquisition.
EIB
European Investment Bank
EITF
The Emerging Issues Task Force of the Financial Accounting Standards Board (US).
Energy management
The process of matching supply and demand across the portfolio of a market particiopant's activities.
ENSTOR ENSTOR, Inc
The gas storage and hub services subsidiary of PPM energy.
EPS
Earnings per share
Equity
The voting capital in a company represented by the ordinary shares.
ESOP
Employee Share Ownership Plan (UK)
ET
Executive Team, a standing committee of the Board which assists the Chief Executive and, in particular, oversees much of the group's risk managements activities.
ETS
Emissions Trading Scheme, an EU mechanism for the trading of carbon dioxide and other greenhouse gas emmissions.
EU
European Union, the body of 25 states bound by treaty to cooperate in aspects of the management of their affairs.
Exceptional items
Gains or costs that are disclosed separately because they arise outside the normal business activity.
Ex dividend
Purchase of a share ex dividend (xd) means that the buyer of a share is not entitled to receive the next dividend payment; opposite of cum dividend.
ExSOP
Executive Share Option Scheme open to the company's executive directors and senior managers.
Fair Value
The amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm's length transaction.
FAS
Financial Accounting Standard (US)
FASB
Financial Accounting Standards Boar (US)
FERC
The Federal Energy Regulatory Commission, the US federal energy regulator (US).
FFO
Funds from operations
FGD
Flue gas desulphurisation, the process of 'scrubbing' power station emissions to reduce their acid-rain forming potential.
Flotation
The process of listing a company’s shares on a stock exchange.
FPA
The Federal Power Act (US)
Free cash flow
Operating cash less taxation, interest, dividends paid to shareholders and minority interest.
FRS
Financial Reporting Standard (UK)
401(k)
A tax-beneficial savings plan available to US-domiciled employees (US).
G
GAAP
Generally Accepted Accounting Principles, these vary between the UK ("UK GAAP") and US ("US GAAP").
Gas
Natural gas
Gearing – enterprise value (EV)
Net debt expressed as a percentage of the total of the Group’s market capitalisation plus net debt.
Giga (G)
One thousand million (1,000,000,000) units
Goodwill
The difference between the price paid for an acquisition and the fair value of the assets and liabilities acquired.
Great Britain (GB)
England, Scotland and Wales
Group (or group)
Scottish Power plc and its consolidated subsidiaries.
Guaranteed Standards
Standards of performance agreed between the company and Ofgem for transmission, distribution and supply (UK).
H
Hedging
Reducing exposure to risk of loss resulting from fluctuations in exchange rates, commodity prices, interest rates etc.
Home area
The geographical area in which a company was previously the sole licensed supplier of residential customers (UK).
HR
Human Resources
Hub services
A generic term describing various fee-based transactions carried out by a gas storage operator; for example, parking and loaning gas to meet balancing needs or "wheeling" gas from one pipeline to another at the storage location.
Hydroelectric
The generic description for generating plants making use of the movement of water as their energy source.
I
IAS
International Accounting Standard
IASB
International Accounting Standards Board
ICSA
Institute of Chartered Secretaries and Administrators (UK)
IFRS
International Financial Reporting Standard
IFRIC
International Financial Reporting Interpretations Committee
Institutional investor
Large financial institutions such as pension funds, unit or investment trusts and insurance companies.
Interconnectors
The high voltage links connecting the transmission system of Scotland with those of England & wales and of Northern Ireland (UK).
ISA
Individual Savings Account
ISIN
International Securities Identification Number. A unique international code which identifies a securities issue. Each country has a national numbering agency which assigns ISIN numbers for securities in that country.
K
Kilo (k)
One thousand (1,000) units
L
LGB
London Benchmarking Group, a body which manages a standard for the reporting of aspects of corporate social responsibility amongst over 100 leading UK companies (UK).
LCPD
Large Combustion Plant Directive, the EU directive governing the operation of large combustion plants including most coal-fired power stations.
Liquid resources
Liquid resources comprise short-term deposits which have maturity dates of less than three months.
LNG
Liquified Natural Gas
LTA
Lost time accidents, accidents at work leading to employees being absent from work.
LTIP
Long Term Incentive Plan
M
Market capitalisation
The price of one of the Company’s ordinary shares multiplied by the number of shares in issue.
Mega (M)
One million (1,000,000) units
MidAmerican
MidAmerican Energy Holdings Company, an Iowa corporation.
MM BTU
(A thousand, thousand BTU) a measure of the scale of a gas supply arrangement.
M-t-M (Mark-to-market)
The adjustment made to record an asset or a liability at its fair market value.
Mutual fund
The US name for a unit trust.
N
NETA
The new Energy Trading Arrangements introduced in March 2001 (UK).
Net turnover
Gross turnover less excise duty.
NGC
National Grid Company
Normalised
Profits or earnings before exceptional items and goodwill, excluding discontinued operations.
NOx
Oxides of Nitrogen
O
Ofgem
The Office of Gas and Electricity Markets, which provides administartiive support to the UK regulatory authority (UK).
OFT
Office of Fair Trading
Origination
General term for taking the responsibility for the management of long-term contractual arrangements for power or commodity supply.
plc
Public limited company (UK)
Power plants
Electricity generating facilities (US)
Power production
The US term for the generation of electricity.
PPM Energy
PPM Energy, Inc. the group's competetive energy business active in North America.
Power Stations
Electricity generating facilities (UK)
Preliminary results (Prelims)
The first release of a company’s results for the financial year to the stock exchange.
PSP
The Personal Shareholding Policy under which executive directors and key senior managers are expected to build up and retain a shareholding in the company.
PTCs
Production Tax Credits which make renewable generation cost-effective in many US electricity markets (US).
PUHCA
The Public Utility Holding Company Acts-of 1935 as amended, and 2005 (US).
Rates
The US terms for tariffs.
RECs
Renewable Energy Certificates, tradable confirmation that generation output qualifies for recognition as being from renewable sources and therefore attracts incentives in many electrisity markets (US).
Refurbishment of networks
Activity designed to replace and modernise network assets without materially increasing their capacity, generally undertaken to improve cost-efficiency, reliability or other aspects of service quality.
Reinforcement of networks
Activity designed to increase the capacity of network assets, generally undertaken to cope with increased customer demand.
Renewables
Sources of electricity generation which use naturally occurring or self-generating inputs, examples include wind and hydroelectric power.
Retail sales
The supply of electricity or gas to end-users customers.
Return on investment (ROI)
Trading profit after tax expressed as a percentage of the average and total capital and reserves plus net debt and goodwill written off.
Rights issue
Offer of shares to existing shareholders to raise additional funds for the company.
RO Renewables Obligation Certificates
Tradeable confirmation that generation output qualifies for recognition towards the Renewables Obligation (UK).
RPI
The Retail Price Index, a measure of inflation (UK).
S
6 Sigma
A business process improvement methodology used to seek out potential productivity and service quality gains.
Security
A financial instrument issued by a company and traded on a stock exchange.
Securities and Exchange Commission (SEC)
The statutory body that regulates the US securities industry.
Securities and Futures Authority (SFA)
The regulatory body for the securities and futures markets in the UK.
SEDOL number
Stock Exchange Daily Official List number. This is a code used by the London Stock Exchange to identify foreign stocks, especially those that are not actively traded in the US and do not have a CUSIP number.
SFAS
Statement of Financial Accounting Standards
Share Option Scheme
A trust established by a company for the allocation of shares to employees.
Short
Borrowing a security from a broker and selling it, with the understanding that it must later be bought back (hopefully at a lower price) and returned to the broker. Short selling (or "selling short") is a technique used by investors who try to profit from the falling price of a stock.
Short-term debt
The portion of debt that is payable within one year.
SO2
Sulphur dioxide
SP plc
Scottish Power plc
SPFUS
Scottish Power Finance (US), Inc.
SPHI
Scottish Power Holdings, Inc. the non-trading holding company for most of the group's US interests (US).
Spread
Usually the difference between the bid and offer prices.
SPUK
Scottish Power UK plc, the non-trading holding company for most of the group's UK interests (UK).
SSAP
Statementy of Standard Accounting Practice (UK)
T
Tera (T)
Indicates a measure of 1012, for example terawatt hours.
Thermal
The generic description for generating plants burning coal, gas, black liquor and the like, or using geothermal energy.
Transmission
The transmission or the transfer of electricty from power stations to the distribution system.
Transportation (of gas)
Transfer of gas from onshore terminals to consumers through the national pipeline network (UK).
TSR
Total Shareholder Return, the return provided by capital appreciation and dividend reinvestment over a period.
U
UITF
The Urgent Issues Task Force of the Accounting Standards Board (UK).
UK
United Kingdom, comprising England, Scotland, Ireland,Wales and Northern Ireland.
US
United States of America
V
VaR (Value at Risk)
A statistically-based measure of the potential financial loss on a price exposure position used to provide a consistent measure of risk across the group.
Volt (V)
Unit of electrical potential.
W
Watt (W)
Unit of electrical power, the rate at which electricity is produced or used.
Watt hour (Wh)
Unit of electrical energy, the production or consumption of one watt for one hour.
Wholesale sales
The supply of bulk electricity or gas to parties other than end-user customers.
Windfarms
Groups of wind-driven turbines used to generate electricity.
Yield
The rate of return gained on an investment. It also refers to the dividend payable on a share (and is expressed as a percentage of the market price).
Conversion Factors
Metres Yards
0.91 1 1.09
Km Miles
1.61 1 0.62
Litres US Gallons
3.78 1 0.26