December 7, 2020

Efet Election Sheet To The General Agreement

Filed under: Uncategorized — Administrator @ 11:58 am

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). 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 describes very early on the concept of the single agreement on the document (section 1.1), which means that all transactions depend on each other and that a default under a transaction is considered a late payment for all transactions covered by the agreement. The EFET agreement is a master compensation agreement 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). 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). 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 provides training on ISDA master contracts, CSAs, GMRAs, GMSLAs and EFETs. Changes to the standard text should be made in the electoral paper and not in the main body of the General Agreement. There are also country-specific and trade-specific annexes that have been developed by the EFET to complement the terms of the general agreements, including: EFET contracts are generally treated by physical delivery different from the normal method of billing goods transactions under an ISDA management contract.

EfET not only promotes regulatory measures to allow the free flow of electricity and gas in a balanced risk environment, but has also developed standard legislation for energy trade.

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