EfET has various sub-groups that often outsource part of their work to external (legal) advisers and are funded by contributions from members: EFET has commissioned legal opinions on the applicability of EFET`s general agreements and collateral agreements in various jurisdictions. Paris – Dentons has advised the European Federation of Energy Traders (EFET) and issued french legal opinions on the applicability of certain provisions of EFET`s general agreements on the supply and purchase of electricity and natural gas for the benefit of EFET members. Dentons is the world`s largest law firm, combining talent with the challenges and opportunities of the world in more than 75 countries. Dentons` legal and business solutions have deep roots in our communities and award-winning advances in customer service, including Nextlaw, Dentons` innovation and strategic consulting services. EFET has commissioned legal opinions on the applicability of the General Electricity and Gas Agreements for many European countries available to EFET members. The applicability of EFET`s terms and conditions in each country may vary depending on local laws and practices. A list of countries and the costs of obtaining such legal advice are available on the EFET website (www.efet.org). The law firm Dentons acted as Ukrainian legal advisor to the European Federation of Energy Traders and provided legal advice on the applicability of the EFET General Agreement on the Supply and Purchase of Natural Gas and its subsidiary agreements. In addition to promoting regulatory measures that allow free trade in electricity and gas in a balanced risk environment, EFET has also prepared standard legal documentation for energy trading. The EFET agreement is a framework clearing agreement that can cover an unlimited number of transactions defined as « individual contracts ». Individual contracts contain the economic terms of each transaction (e.g. start and end dates, delivery schedules, contract capacity and quantity, price and total costs).
Dentons Paris` Capital Markets team advised in particular on the closing compensation, validity, applicability and guarantee contracts of the EFET General Agreements. The European Federation of Energy Traders (EFET) was founded in 1999 and is an association of more than 100 energy traders in 27 European countries operating in the wholesale electricity and gas market. The reason for its creation was the easing of restrictions on the electricity and gas market within the European Union. The general contract contains a number of general conditions for delivery conditions, payments, risks of non-delivery and closing compensation. These Terms apply to each underlying transaction. I like the valuable information you provide in your articles. In this transaction, Dentons Paris` Capital Markets team supported the European Federation of Energy Traders with a team that included Julien Bacus, Partner, Charles Tissier, Senior Associate and Maximilien Plaisant, Associate. As a general rule, buyers and sellers who use the EFET agreement develop their own « home » view of the terms contained in their election document, based on their market position. One of the most important issues to consider when developing such a position and in negotiations with counterparties is the credit risk and credit support that the parties are willing or need. Parties without solvency or guarantee of the parent company are generally obliged to resort to commercial banks.
Dentons is a multinational law firm. Dentons was the 5th largest law firm in the world by revenue with gross sales of $2.9 billion in fiscal 2019. The company is called Dentons in all languages except Chinese, in which it is called 大成. Kiev-based partners Natalya Selyakova and Maksym Sysoiev led the Dentons team with the significant support of Nadiya Shylienkova, a lawyer, Artem Lukyanov, a senior partner, and Artur Savin, a partner. Your email address will not be published. Mandatory fields are marked * Dentons is the world`s largest law firm, combining world-class talent with the challenges and opportunities of the world with 20,000 professionals, including 12,000 lawyers, in more than 200 locations in more than 80 countries. Dentons` multi-centred, goal-oriented approach, commitment to inclusion and diversity, and award-winning customer service challenge the status quo to advance client interests. www.dentons.com EFET has published two main documents – the EFET General Electricity (i.e.
Electricity) and Gas Agreements, which are model contracts that can be used by traders to increase liquidity in the wholesale market by providing standardised conditions for underlying transactions. These standardized framework agreements for the supply and purchase of electricity or natural gas provide a similar structure to the framework agreements for OTC derivatives published by the International Swaps and Derivatives Association Inc. (ISDA). EFET promotes competition, transparency and free access in the European energy sector. It currently represents more than 100 energy trading companies operating in more than 27 European countries. Dentons` polycentric and focused approach, commitment to inclusion and diversity, and world-class talent challenge the status quo to advance client and community interests in the new dynamic. The main advantages of using these documents are the shortened trading time when few or no changes are made, and the standardization of documentation in this market. As a general rule, EFET contracts are processed by physical delivery, which is different from the normal invoicing method for transactions in goods under an ISDA framework agreement. Any company acting on its own account in Europe is allowed to join EFET. All proposals will be reviewed by the Board of Directors, and companies are required to adhere to EFET`s Principles of Good Conduct for Energy Trade: (The « 10 Pillars ») In addition to the general agreements, EFET has published a credit support annex to be used with the agreement.
This is often used in the market and aims to ensure exposure to market price risk by transferring collateral. The General Agreement consists of 23 sections and an election sheet (similar to an ISDA Framework Agreement Plan) in which agreed additions and amendments to this General Agreement are made. There are also country-specific annexes and shopping malls developed by EFET to complement the terms of the general agreements, including: We offer various forms of membership. The two most popular are: In any case, general agreements describe the concept of the single agreement very early in the document (in section 1.1), which means that all transactions depend on each other and a default in a transaction counts as a default among all transactions covered by the agreement The European Federation of Energy Traders is an association of European energy traders on the markets wholesale electricity and gas. EFET was founded in 1999 in response to the liberalisation of the electricity and gas markets in the European Union. Any changes to the standard text must be made in the election sheet and not in the body of the General Agreement. Derivatives Documentation Limited would like to thank our guest blogger Ernst van den Broek, founder of Trading Lawyers (www.tradinglawyers.com), for sharing this helpful summary of the EFET agreements. Ernst has over 15 years of experience in the financial sector and regularly negotiates and forms ISDA framework agreements, CSAs, ARMGs, SLGs and EFETs. This site uses Akismet to reduce spam.
Find out how your comment data is processed. The agreements and the associated EFET supplementary documentation library are currently the industry standards used throughout Europe for the physical trade in electricity and gas.
