Energy, in fact, is never lost: a fundamental law of the universe is the conservation of energy, which states that in a system isolated from all other outside factors, the total amount of energy remains the same, though transformations of energy from one form to another take place. Thermal energy is actually a form of kinetic energy generated by the movement of particles at the atomic or molecular level: the greater the movement of these particles, the greater the thermal energy. Temperature, heat, and related concepts belong to the world of physics rather than chemistry; yet it would be impossible for the chemist to work without an understanding of these properties.
When people use the word “heat” in ordinary language, what they are really referring to is “the quality of hotness”—that is, the thermal energy internal to a system. In scientific terms, however, heat is internal thermal energy that flows from one body of matter to another or, more specifically, from a system at a higher temperature to one at a lower temperature. Temperature may be defined as a measure of the average internal energy in a system. Two systems in a state of thermal equilibrium have the same temperature; on the other hand, differences in temperature determine the direction of internal energy flow between two systems where heat is being transferred.Source:
http://gundulshare.blogspot.com/2012/12/energy-heat-and-temperature.html

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