An OVERTHECOUNTER SWAP involving the exchange of fixed and floating electricity prices based on the average level of a recognized electricity pool or pricing index; transactions are often settled monthly or quarterly (to coincide with billing cycles), on a physical or financial basis. Also known as POWER SWAP. See also POWER OPTION.
Link to This DefinitionDid you find this definition of ELECTRICITY SWAP helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary