EFETnet

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• EFETnet Well Connected

Electronic Confirmation Matching for European
Energy Traders
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The ad-hoc Response to Absense of Standards
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How does Energy Trading work?
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How does Energy Trading work with the EFET Box?
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The EFETnet Mantra Yin-Yang-Yong
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The achievement of EFET eCM Total
Interoperability
Standardisation
standardised

• Yin/Yang/Yong
• - Document Standard
• Interoperable Software
• - No Spaghetti situation
• - Converters Participants

• Spaghetti Communication
• No Standard Business Process
• No Standard for Data Exchnage
• - No Standard for Document Formats
• - Converters Participants2

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EFETnet eCM Users expected Users (Nov. 2006)
22 companies live or with projects started
The next Wave
UBS, EWE, MVV, CNR, ICP, Delta, WinGas,
GazProm, Iberdrola, Man Financial,
gt 35 live end of 07
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Example of an EFETnet confirmation
Extremely fast Electronic confirmations sent and
matched within 2 minutes
Typical Electronic confirmations sent and matched
within one day
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Counterparty and Broker MatchExample 5 Trader,
Counterparty and Broker involved in eCM,
Brokers BCN matched with own CNF and BFI, and
Counterpartys CNF matched with own CNF. Broker
Match took place at first
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Benefits of eCM

• Management
• Automate overhead to business
• Standardise non competitive activities
• Share costs
• Legal
• Increased clarity of business interactions
• Standardised industry terms and templates
• Speed of processing new commercial relationships
• Business
• Reduced operational risk
• Scalability straight through processing (STP)
• Process standardisation and quality
• Technical
• Increased time and budget to deal with higher
  value internal IT
• Certified industry standard solution can be
  leveraged for other messages
• Defined service levels

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papiNet Users A typical 3-Corner Relationship
Stock Management
Sales
Financial Acct.
Paper Supplier
Transport
Purchase Order
Order Confirmation
Delivery Notes
Invoice
Call-off
Printer
Reservation / Order
Customer
Stock Management
Inventory Stock
Production Management
Stock Management
Procurement
Financial Acct.
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Ponton X/P Users
Ponton Consulting
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Status of EFETnet
Contractual framework - overview
Ponton Consulting GmbH

• Software Developer
• Provides an industry wide licence
• Maintenance, Support Help Desk

EFETnet BV

• EFETnet Agreement
• Monthly service fee
• Back to back maintenance, support help desk
• Sub-licence

Participant C
Participant A
Participant B
EFET Electronic Confirmation Agreement (ECA)
bilateral agreement to exchange confirmations
based on EFET Standards
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What is EFETnet ?

• Independent company, owned 100 by EFET.
• Aim is to provide the central infrastructure
  needed to enable its members to reliably and
  securely exchange documents within the European
  energy trading industry.
• Peer-to-peer document-centric approach based on
  industry standards like EFET ECM 3.1 and ebXML.
• In March 2006, EFETnet has 12 corporate customers
• Initial focus on confirmation process with plans
  to move to scheduling, invoicing and CO2 title
  transfers in the future.

www.efetnet.org
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Further Steps in Standardisation Implementation

• Next Steps
• Commodities
• Spanish Swaps
• Electronic Position Matching
• Nominations
• EUA Registry related process
• Settlement / Clearing

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Expansion into neighbouring industry sectors
Status of EFETnet

• Traders Brokers
• Brokers Spectron is life for 10 months,
  ICAP/GFI/Prebon to implement
• Electronic Position Matching Prototype bult by
  Dec. 06, product by July 07
• CO2 Regsitries Messaging integration developed
  together with CDC/DEFRA
• Processes Registry transfer requests, Registry
  reports
• Won against SWIFT!
• ETSO Exchange of Power schedule data between
  European Grid Operators
• ESS 3.0
• Nominations
• EASEE-gas Data exchange among gas grid operators
  (planned)
• EDIg_at_s, AS/2
• Nominations
• Exchanges Deutsche Börse/ENDEX/Powernext
• Central Matching, Clearing

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For Example EUA Registry Interface
Status of EFETnet

• History
• Mid 2004 an API was requested
• Oct 05 evaluation conducted EFETnet, Swift,
  bespoke build
• May 06 questionnaire to be completed by
  YOU!!!
• June 06 decision expected ?
• Carbon Expo (May 2006)
• A lot of interest in EFETnet for carbon
• CDC keen on EFETnet GRETA/DEFRA still need
  lobbying
• Status (Nov. 2006)
• Demand identified for 6-10 national Registries
• CDC implementing, integrating with Ponton X/P
• DEFRA has issues CFT für Registry/messaging
  interface
• Trading System vendors start developing interface
  for EUA transfer notification
• Integration with pilot users (Gaselys,
  Electrabel) to start inDec. 06

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Ponton Consulting takes different roles in
international B2B integration projects.
Internal Processes
External Processes
Internal Processes
M
M
XML
XML
Supplier
Customer
ERP
-
System
Transformation / Data Mapping
Message Transfer
Transformation / Data Mapping
ERP
-
System
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Borderline of the EFET Box system
EFET Box architecture and development
Internet
Trading Organisation
Trading Organisation
ETRM System
ETRM System
EFET Box
EFET Box
Match/ Dispatch
Match/ Dispatch
In
Out
In
Out
Audit Trail CNFs
Audit Trail CNFs
Archive
Archive
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