COMPARTICIÓN DE HERRAMIENTAS Y ELEMENTOS DE INFRAESTRUCTURA DE UTILIDAD ESTADÍSTICA

4.3.3 Credit and clearing

Lowering the credit risk and the need for credit is very important for member companies. Several projects under other headings play a role, for e.g. standardisation of contracts and payment date netting. When standardised electronic data exchange is realised, these elec- tronic data could in the near future also be used for electronic data exchange with clearing houses, lowering costs and facilitating and promoting the use of clearing houses, thereby further lowering cred- it risk.

4.3.4 Gas Hubs

Our ambitions to create a number of liquid trading hubs have made slow progress. However, the number of potential locations for gas hubs in Europe has multiplied in recent years. The EFET Gas Hub Development group is working towards a shared vision of how to bring about further market depth, liquidity and transparency at key points in Europe which will avoid unnecessary market fragmentation and promote efficiency in the pan-European gas market.

It will continue to work with hub operators to ensure that access con- ditions will enable trading to develop, and with the trading commu- nity overall to address common issues, such as the convergence of trading terms, in relation to ultilisation of both electricity and gas infrastructure.

4.3.5 Transparency of information about physical infrastructure Transparent information is important for traders in order to have trust in the system, the prices and to take positions. Which informa- tion and how it is provided should not differ much among European countries, but follow one harmonised European way. EFET will strong- ly advocate this in relation to utilisation of both electricity and gas infrastructures.

4.3.6 Development of real European companies.

EFET would like to see the further development of real European (regional) trading and grid companies instead of pure national cham- pions.

4.4 Standardisation

When speaking about standardisation, we are talking primarily about the standardisation of contracts, business processes and electronic data exchange.

4.4.1 Contracts standardisation

The use of EFET standardised contractual documentation by partici- pants in traded energy markets throughout Europe has been very high, given the relatively few years in which EFET has been develop- ing and releasing such documents. Given that EFET cannot, and would not wish to, force use of its contractual products on anyone, we must judge the success of our efforts by the extent to which documents are voluntarily taken up and employed by those wishing to trade energy within Europe’s markets. Success to date in this regard is due to many factors, including speed and flexibility in developing and adapting documentation to meet the evolving needs of Europe’s various whole- sale, physical OTC markets; ability to harmoniously combine user friendliness with legal sophistication in the documents developed to

date; the broad scope and permissible applications of core docu- ments; and willingness to seek out and take on board input, advice and suggestions for improvement of these documents from all inter- ested parties, whether or not They are EFET members.

Going forward, the focus of the EFET Legal Committee will likely remain consistent with what has been accomplished in the past, with a particular emphasis on:

• Updating and revising the existing master contracts when prudent and necessary;

• Potentially consolidating the existing master contracts into a mas- ter physical commodity type agreement that could be used to trade numerous different wholesale physical commodities and products;

• Increasing the number of countries for which EFET has obtained legal opinions for the gas and electricity contracts, and the CPMA;

• Extending the scope of legal opinions to include and address enhancements in the underlying master documents e.g. to address emission trading, collateralisation and possibly unique aspects of regional trading, dealt with in specific market appendices;

• Developing harmonised appendices for additional European gas hubs, as well as for existing liquid trading points; and

• Coordinating with other EFET committees, task forces and working groups on legal aspects and areas of concern to the EFET members. 4.4.2 Business processes standardisation

In the Back Office Group, several projects on business process optimi- sation are being considered, that will lead to improvements in effi- ciency and the reduction of cost and operational risk.

Further work will focus on:

• More harmonisation of payment dates to facilitate cross commod- ity payment netting and cross currency netting

• Benchmark studies among Back Office personnel.

• New standards and upgrading standards for electronic data exchange between traders

The eCM project for electronic deal confirmation matching is the first of a series of projects foreseen. Once eCM is operating, the same (con- firmed) data can be used for nomination/scheduling, invoicing, clear- ing etc. It also creates the basis to implement “Straight Through Processing” and save a significant amount of money, especially when other players in the energy industry develop in the same direction. 4.4.3 Data exchange standardisation

The standardisation of electronic data exchange will likely be one of the main areas of work for the future, as it has the potential to deliv- er significant cost savings and a reduction of operational risk. To make this possible, traders and other market participants need to agree on standard codes and procedures. A vital precondition for mak- ing this work is good working relationships and co-operation with other industry organisations.

Some EFET accomplishments:

• Consistent approach to promote ener-

gy trading in Europe

• The empowerment of chairmen of dif-

ferent EFET groups

• Finding solutions to issues, even when company views are not in exact agree- ment

• Maintaining efficiency and trust in the EFET system

• Incalculation of EFET spirit into our processes

The philosophy of EFET is to create open standards and to take a European approach instead of multiple national approaches. Due to some special circumstances there is a unique window of opportunity now to cooperate and book significant results and potentially large savings. It is hoped that the European energy Industry will grab this opportunity.

EFET is also an issuing body for EIC codes - ETSO Identification Codes- in future may be called Energy Identification Codes. EFET works close- ly with TF 14 from ETSO (EIC codes and ESS), and maintains contact with ebiX, EASEE-gas, Eurelectric and other organisations, which showed interest in co-operationg on the harmonisation of electronic data exchange.

4.4.4 EFETnet B.V.

In 2004, EFET founded EFETnet BV. EFETnet BV aims to provide the European energy trading sector with a secure and reliable infrastruc- ture to exchange electronic data based on open standards. EFETnet BV operates on a cost-sharing basis, thus allowing traders to share IT investment across the industry.

To achieve its mission, EFETnet B.V. acquired an industry-wide soft- ware license from Ponton Consulting GmbH. This software allows for the exchange of data using the ebXML standard. EbXML is a global electronic business standard that is sponsored by UN/CEFACT (United Nations Centre For Trade Facilitation And Electronic Business) and OASIS (Organisation for the Advancement of Structural Information Standards). The first business process that will make use of the EFETnet infrastructure is electronic deal confirmation and matching. Starting with the confirmation process, EFETnet B.V. is now in a posi- tion to facilitate the promotion and implementation of energy indus- try standardisation (scheduling, invoicing, pricing, position reconcilia- tion, etc.). This service will not only make the industry more efficient, it also will help to lower operational risk.

The shares in EFETnet BV are 100% owned by EFET although EFET has an open mind to letting other groups in the energy industry participate as well. This could also help stimulate the use of this secure and reli- able infrastructure and further increase electronic data exchange throughout the energy sector.

4.5 Geography

There will be a growing need for co-ordination in finding regional or European solutions.

4.5.1 France

EFET France will focus principally on improving market transparency and addressing measures related to congestion management at the borders, including the development of a market mechanism to allo- cate capacity. A key priority will also be continued work with RTE’s interconnector working groups and to monitor the progress of debates on balancing mechanisms. To do this, EFET France will work with the CFMA (Commission de fonctionnement du mecanisme d’ajustement), the commission for balancing mechanisms, and its different working groups.

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