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. What are the rules governing contract-compliant interpretation in (non-consumer) contracts in general? Do these rules apply to energy contracts? In the gas sector, there is a multilateral agreement between gas network managers – the cooperation agreement – which contains provisions for the organisation of access to the network and cooperation between gas network managers. EFET has published two main documents: the EFET electricity (electricity) and gas agreements, which are standard contractual contracts for use by distributors, in order to increase liquidity in the wholesale market by setting standard conditions for underlying transactions. 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 general agreement contains a number of standard conditions for delivery conditions, payments, delivery defects and completion. These conditions apply to any underlying transaction. EfET contracts are generally processed 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. THE EFET encourages competition, transparency and open access in Europe`s energy sectors. EFET agreements are used to document transactions between parties in different jurisdictions for the supply and acceptance of electricity and gas.
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. These standardized master`s contracts for the supply and receipt of electricity or natural gas offer a structure similar to that of master`s contracts published by the International Swaps and Derivatives Association Inc.