Efet Gas General Agreement
These standardized management contracts for the supply and receipt of electricity or natural gas offer a structure similar to that of master`s contracts for OVER-the-counter derivatives published by the International Swaps and Derivatives Association Inc. (ISDA). EFET has commissioned legal opinions on the applicability of general power and gas agreements for many European countries, which are available to EFET members. The applicability of the general terms of sale of EFET in each country may vary according to local laws and customs. A list of countries and the cost of obtaining such legal advice are available on the EFET website (www.efet.org). The EFET agreement is a compensation-master contract that can cover an unlimited number of trades defined as „individual contracts.“ Each contract includes the economic conditions of each trade (for example. B start and end date, delivery plans, contract capacity and quantity, price and total cost). The agreements and the EFET library associated with it, with additional documentation, are currently the industrial standards applied throughout Europe to the trade in physical energy and gas. In any event, the general agreement very early on describes the concept of the single agreement on the document (section 1.1), which means that all transactions depend on each other and that a failure under a late payment transaction in all transactions covered by the eFET agreement has published two main documents – the general agreements on electricity (i.e.
electricity) and on electricity and on electricity , which are standard contracts used by traders to increase liquidity in the wholesale market by increasing liquidity in the wholesale market, providing liquidity in the wholesale market on standardized terms for underlying transactions. The main benefits of using these documents are a reduction in trading time when few or no changes are made and the standardization of documentation in this market. Derivatives Documentation Limited thanks our guest blogger Ernst van den Broek, founder of Trading Lawyers (www.tradinglawyers.com), for transmitting this useful synthesis of EFET agreements. Ernst has more than 15 years of experience in the financial sector and regularly negotiates and offers training on ISDA master contracts, CSAs, GMRAs, GMSLAs and EFETs. In addition to the general agreements, EFET has published an annex on credit support that can be used with the agreement. This situation is often used in the market and is designed to guarantee market price risk by transferring guarantees. The European Federation of Energy Traders (EFET) was established in 1999 and brings together more than 100 energy distributors in 27 European countries active in the wholesale electricity and gas market. The reason for its creation was the easing of restrictions on the electricity and gas markets in the European Union. Changes to the standard text should be made to the election newspaper and not to the main part of the general agreement. EfET contracts are generally processed by physical delivery different from the normal method of billing goods transactions under an ISDA management contract. The general agreement consists of 23 sections and an electoral ballot (similar to an ISDA master-convention plan) in which the agreed complements and amendments to this general agreement are made.
There are also country and trade-specific annexes, developed by the EFET to complement the terms of the general agreements, including: in addition to promoting regulatory measures to allow the free exchange of electricity and gas in a balanced risk environment, the EFET has also developed standard legal documents for energy trade.