Page 165 - PRIAA Glossary

TERMINATION EVENT
A set of prescribed events under the ISDA Master Agreement, the occurrence of any of which will allow the terminating party (or parties) to close out the transactions affected by the relevant termination event. Termination events differ from events of default in that they generally relate to a change in circumstances resulting in one party (or both) being unwilling or unable to continue to honour its obligations. An event of default relates to a breach of obligations.
THERM
The British unit of measurement for a quantity of gas in terms of energy, equivalent to 1, British thermal units or 15,56, joules. Gas at the National Balancing Point (NBP) trades in pence per therm.
THETA
The rate of change in price of an option with respect to time- to-maturity, keeping all other factors constant.
to maturity:
The equation below illustrates the mathematical formulation for theta, where V is the value of the option and τ is the time
θ = – ∂V ∂τ
THIRD-PARTY ACCESS (TPA)
Open and non-discriminatory access to the networks by
those who do not own the physical gas, crude or electricity transmission network infrastructure. TPA is fundamental in facilitating greater competition and making energy markets work effectively. Also called common carriage, it is a legally enforceable right to access the facilities as per the agreement.
THRESHOLD
The amount of uncollateralised exposure a party is prepared to accept against its counterparty before calling for collateral.
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