ANNUAL REPORT

2020-2021 Edition

EFET Mission

We promote competition, transparency and open access in the European energy sector.

We build trust in power and gas markets across Europe, so that they may underpin a sustainable and secure energy supply and enable the transition to a carbon neutral economy.

We do this by:

Working to improve the functionality and design of European gas, electricity and associated markets for the bene t of the overall economy, society and especially end consumers.

Developing and maintaining standard wholesale supply contracts and standardising related transaction and business processes.

Facilitating debate amongst TSOs, regulators, policy makers, traders and others in the value chain about the future of the European energy market.

Table of contents

Foreword

The lockdowns: a retrospective

The coronavirus (Covid-19) crisis of 2020 has presented an unprecedented and dynamic set of challenges for our European society and the European economy.

Special feature

Throughout 2020 EFET has been actively contributing to shaping the changing climate and energy policy landscape driven by the implementation of the European Green Deal (EGD).

Special feature

Looking back at two decades with EFET: Interview with the outgoing Secretary General, Jan van Aken

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Special feature

Video Interview with the incoming EFET CEO, Mark Copley

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It would be difficult to talk about 2020 without starting with the Covid-19 crisis. The first half of the year, marked by lockdowns in all parts of Europe, saw significant declines in electricity consumption. As Europe has entered a third wave of contamination, the economic activity has still not recovered and may be impacted for years.

With the discussions around the gas market increasingly focusing on the future role of gas, this year the Committee has updated its structure. Issues under the natural gas sector’s transition towards a low-carbon future and sector integration have now been grouped together and will be managed under the New Agenda Working Group.

The European Green Deal set in motion the revision of Europe’s 2030 targets and mandated the preparation of a proposal for an EU Climate Law aiming to enshrine Europe’s climate neutrality objective in EU legislation. As reinforcement and expansion of the EU ETS constitute the cornerstone of both policy proposals, this topic has been central to the work of the EFET Task Force Emissions Trading throughout the year.

Our Market Supervision Committee (MSC) deals with regulatory developments, which aim to strengthen market integrity and transparency and to reduce systemic risk. Measures related to the strengthening of market integrity include provisions prohibiting market abuse – including market manipulation and insider trading – in electricity, gas, emission allowances, and related derivatives markets.

In my view, the level of competition in Europe has improved though it is true that a few players continue dominating energy trading.

Even though strong gas market integration has been a reality for areas covering three-quarters of EU gas consumption, and has gradually advanced across several other jurisdictions, the regional differences remain.

The year 2020 has been a challenging year for the energy trading industry. With BREXIT and the COVID-19 pandemic impacting the Legal Committee’s work programme, we are proud to highlight some of our key results and progress.

Following previous EFET initiatives to provide standards for major Trading processes (including electronic Settlement Matching, electronic Broker Matching, and electronic Regulatory Reporting) the EFET BPOC (Business Process Optimisation Committee) set up a working group to create similar OPEN standards for Settlement.

Interview with Chair of the EFET Board, Marcus Bokermann

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EFET Deutschland has already had a separate working group on the topic of sector coupling (Arbeitsgruppe  Sektorenkopplung) since January 2019. In the founding phase with a co-chair structure we attracted representatives from  22 member companiess, and the number is rising. The group meets at regular intervals in close temporal proximity to either a an electricity or gas task force meeting.

Member Companies