Emart Broch-2007.Indd

THE EUROPEAN PLATFORM FOR ENERGY TRADING

2007

21-22 NOVEMBER AMSTERDAM

MEETING POINT FOR ENERGY TRADERS

SPONSORS SUPPORTED BY GOLD SPONSOR

ORGANIZED BY

WWW.EMART-ENERGY.COM INTRODUCTION

As energy traders and originators get into the swing of of setting the framework for a cap and trade scheme for carbon the tenth annual contracting season since the adoption emission allowances post-Kyoto? Can they agree on that framework of the fi rst EU Electricity Directive, many of us will be for the EU while still negotiating international treaties to come into pondering what are the prospects for further wholesale force after 2012? energy market development. In particular we have yet • Where should lie the boundary between the regulation of energy to see whether the European Commission can push markets (if physical OTC transactions need to be regulated at all?) through proposals for a third internal energy market and any related regulation of fi nancial markets (i.e. by way of legislative package, and if it can, whether it will make much controls over energy and other commodity derivative transactions)? difference to competition and liquidity. Whilst policymakers, offi cials and TSO managers fi ddle with “rules” The content of the Commission’s package impinges on many of the applying to the operation of wholesale energy markets, we traders and energy market themes and energy trading topics, which will be under originators have no choice but to get on with our business as best we consideration at this year’s EMART Energy. Among these themes and can. Often at the forefront of making our business processes more topics you will discover, by attending EMART Energy, that some thorny effi cient, streamlined and better harmonised are professionals such questions confront those of engaged in the wholesale power, gas as lawyers, accountants, IT managers, risk managers and back offi ce and emissions markets in Europe: co-ordinators. As usual at EMART Energy a signifi cant part of the • Do traders, at this stage of completion of single European markets programme is devoted to examining the initiatives being taken by these in power and gas, endorse the need for ownership unbundling of professional colleagues to facilitate interactions between wholesale transmission operators? energy market participants. Important examples include the extension • If not, could we endorse ownership unbundling as one option, while of the use of EFET master contracts into new geographical areas and supporting the idea of Independent System Operators (ISOs) as the increasing use of electronic data exchange in confi rming and imple- the alternative? menting wholesale transactions. Such initiatives may indeed together • If national energy regulators can be made more independent (from prove more decisive in developing liquidity and promoting competition government infl uence) and become better co-ordinated, do traders in the wholesale supply of gas and electricity than any number of EU support an “independent EU regulatory agency” as a means to institutional and legal reforms! ease cross border access? I look forward seeing you in Amsterdam! • When will European policymakers come to terms with the urgency Paul van Son, Chairman, EFET

TIME SCHEDULE

MONDAY 19 NOVEMBER 2007 10.00 – 16.00 Workshop: Understanding and Using the EFET Form Agreements by Troutman Sanders

TUESDAY 20 NOVEMBER 2007 10.00 – 16.00 Energy Contracting Master Class – The Universe of EFET Form Documentation by Troutman Sanders 11.00 – 17.00 Pre-conference seminar by Global Energy Decisions WHO SHOULD ATTEND WEDNESDAY 21 NOVEMBER 2007 08.00 – 18.00 Registration • Energy Traders (front/mid/back ofﬁ ce) 09.00 – 11.45 Conference sessions • Lawyers 10.00 – 19.00 Exhibition • Managers Origination 12.00 – 13.15 Ofﬁ cial opening • Asset Managers 13.15 – 14.30 Lunch • Business Development Managers 14.30 – 17.30 Conference sessions • Software Suppliers 17.30 – 18.00 Energy Business Awards • Consultants • Financial Experts 18.00 – 19.00 Networking reception • Marketing Managers 19.30 Departure busses • Bankers 20.00 – 00.00 Energy Traders Party 2007 in Onassis • Brokers THURSDAY 22 NOVEMBER 2007 • Risk Managers 08.00 – 14.00 Registration • Portfolio Managers • Power Exchanges 09.30 – 12.30 Conference sessions • Industrial Consumers 09.00 – 16.00 Exhibition • TSO’s 12.30 – 14.00 Lunch • Regulators 14.00 – 16.00 Conference sessions • IT Managers

2 REASONS TO ATTEND STATISTICS

1 OVER 90 SPEAKERS EMART ENERGY 2006 (25 & 26 October, Berlin, Germany) Participate in the multi-track session format and learn from trading experts from many European companies in the energy PARTICIPATION PER REGION trading industry. Tailor your time and choose the sessions that are relevant to your areas of expertise.

2 OFFICIAL OPENING

“Are we ready for a single European market design?” The key theme to explore during the keynote session this year. Using electronic voting you will be able to answer key questions and see in real-time the views of the overall audience.

3 INTERNATIONAL AUDIENCE

Take this opportunity to meet and network with your international colleagues involved in the European wholesale supply of electricity, gas and associated products. Western Europe 4 INTERNATIONAL EXHIBITION Central & Eastern Europe Southern Europe The networking exhibition provides delegates and visitors the Northern Europe opportunity of seeing latest technology and services essential Other to gas & electricity utilities. PARTICIPANTS BY COMPANY TYPE 5 ENERGY BUSINESS AWARDS

2 In cooperation with Commodities Now and Energy Partnership, 5% % 7% for the ﬁrst time, the Energy Business Awards will be presented 11% at EMART Energy. The Energy Business Awards reward excellence in energy business disciplines. The awards ceremony will take place on 21 November after the conference sessions. More 10% information on www.energy-business.com 3% 42% 6 THE WONDERFUL CITY OF AMSTERDAM 3% 6% Attend this years’ EMART Energy and take this opportunity 11% to enjoy the colourful city of Amsterdam.

7 AND.....THE ENERGY TRADERS PARTY 2007! traders other The Energy Traders Party 2007, offered to you by APX, (software) suppliers ﬁnancial guarantees an exciting evening: enjoy drinks, food and music. press exchanges Club Onassis is the place to be for the Energy Traders Party. legal associations For conference delegates only. tso consultants

FOR MORE INFORMATION

SYNERGY PO Box 1021 3600 BA Maarssen Sandra Langedijk, Project Manager The Netherlands [email protected]

Phone: 0031 346 590 901 Marie-Louise van Rossum, Sales Manager Email: [email protected] [email protected]

3 SPEAKERS

NAME COMPANY COUNTRY Maurice Adriaensen KEMA The Netherlands Steve Banks Shell UK Aleksander Barabasz Linde Germany Chris Bates Clifford Chance UK Vladimir Berdin National Methane Center Russia Walter Boltz E-Control Austria Pierre Bornard RTE France Frederieke Brandt Sempra Energy Europe UK Sonia Brown OFGEM UK Hugh Brunswick EFETNet Jeffrey Butrico Essent Energy Trading The Netherlands Marcel Cailliau Electrabel Belgium Marie-Françoise Chabrelie CEDIGAZ France Michael Cieslarczyk DLA Piper Germany Edward Clayman Troutman Sanders UK Roger Cogan ISDA UK Jean-François Conil-Lacoste Powernext France Adam Cooper Merrill Lynch Commodoties UK Colin Cooper Arthur D. Little UK Atle Farstad Marsh Risk Consulting Practice UK Stephan Follender Grossfeld Endex The Netherlands Paul Giesbertz DTe The Netherlands Jens Goebel Statkraft Markets Germany Hans Gruenfeld IFIEC The Netherlands Jan Haizmann EFET Frank-Peter Hansen Bundesnetz Agentur Germany Mark Hayes Blugas Italy Patrick Heren Heren Energy UK Karl-Peter Horstmann RWE Trading Germany Anders Plejdrup Houmoller Nord Pool Spot Denmark Stephan Illerhaus Statkraft Markets Germany Michaela Karavanou E.ON Sales & Trading Germany Juha Kekkonen Fingrid Finland Mark Konijnenberg Citigroup Global Markets UK Peter Koster European Climate Exchange The Netherlands Peter Kreuzberg RWE Trading UK Julian Lambert Global Energy Decisions UK Kari Larsen McDermott Will & Emery UK Per Lekander UBS UK Volker Lischke DONG Energy Denmark Petter Longva Hydro Norway Colin Lyle Gas Markets Insights UK Lars Maehl Bayerische Landesbank Germany Les Male APX Group UK Irfan Mannan Koch Supply & Trading Company UK Keith Martin Gazprom Marketing & Trading UK Corné Meeuwis TenneT The Netherlands Emma Melin Essent Energy Trading The Netherlands Malte Möller RWE Trading Germany Maik Neubauer EEX European Energy Exchange Germany Jim Nicholson Argus Media Group UK Thomas Niedrig RWE Trading Germany Bert den Ouden APX Group The Netherlands Manfred Pils Verbund Austrian Power Grid Austria Ante Pogacic Merrill Lynch Commodities UK Bart Pycke Mercuria Energy Trading Switzerland Didier Ramon Electrabel Belgium Stephan Ressl EconGas Austria Juan Luis Rios Iberdrola Generacion Spain Stephan Saal Vattenfall Trading Services Germany Alexander Savelkoul EFET TF Emissions trading Michael Schlup The Gold Standard Switzerland Michael Schmöltzer E-Control Austria Stany Schrans Fortis Bank Belgium Stephen Sie Financial Services Authority UK Grace Sizey Gaselys France Michael Smith Constellation Energy Resources UK Karla Solis Garcia UNFCCC Germany Paul van Son EFET Klaus Spiekermann Gasterra The Netherlands Peter Styles EFET Klaus Thostrop Energinet.dk Denmark Jonas Törnquist EDF Trading UK Folker Trepte PricewaterhouseCoopers Germany Stefan Ulreich E.ON Energie Germany Anne Vandormael Electrabel Belgium John Varholy Troutman Sanders UK Philippe Vedrenne Gaselys France Pieter Veuger PricewaterhouseCoopers The Netherlands Matthew Williams Hunton & Williams UK Harald Wuestrich Central European Gas Hub Austria Peter Zaman Clifford Chance UK Peter Zapfel DG Environment

4 CONFERENCE GRID

EMART ENERGY 2007, 21 November 2007 EMART ENERGY 2007, 22 November 2007

09.00 - 11.45 11.45 - 13.15 14.30 - 17.30 09.30 - 16.00

Session 1 Session 1 Session 5 Session 6 Ofﬁcial Wholesale Power Wholesale Power Wholesale Power Transmission Capacity Opening Central West Europe markets

Session 2 Session 2 Session 7

Risk Management Risk Management Emissions Trading

Session 3 Session 3 Session 8

Gas Trading Gas Trading Gas Trading

Session 4 Session 4 Session 9

Legal Summit Regulatory Summit Processing & Operations

OFFICIAL OPENING

EMART ENERGY 2007, AMSTERDAM

Are we ready for a single European market design? 11.55 – 12.00 Welcome and Introduction Jim Nicholson, Editor, Argus Media Group, UK On 1 July, the EU passed a major milestone. All energy users in most of its 27 member states can now choose their suppliers. 12.00 – 12.10 Short introduction speakers The suppliers in turn should no longer face any legal or - Bert den Ouden, CEO, APX, The Netherlands administrative obstacles to reaching customers. - Paul van Son, Chairman EFET - Pierre Bornard, Chairman ETSO Steering Yet many technical, political and commercial hurdles remain to Committee be overcome. Brussels strongly supports implicit auctions of - DG TREN* constrained transmission capacity via the energy exchanges. But - Peter Kreuzberg, Chief Commercial Ofﬁcer, can this be reconciled with the granting of rights to grid capacity for RWE Trading, UK longer periods of time? What other mechanisms could be employed - Hans Gruenfeld, President IFIEC, The Netherlands to link national and regional gas and electricity markets? Are there geographical limits to market coupling? 12.10 – 13.15 Debate on harmonizing the design of European power and gas markets Meanwhile, several EU governments still regulate retail prices, • Can the third EU legislative package show distorting the signals that are required to guide investment us the way? decisions, and which a properly functioning market would provide. • Is everyone in the market pulling in the same direction? The opening of Europe’s energy market to the free interaction • Are governments ready to give priority to of supply and demand across national borders will bring huge linking national and regional markets? advantages. But today, the market still falls short of being properly • Will subsidies from renewable power hold competitive. back liquidity? • Might the gas sector overtake the slow Panellists will identify the opportunities, obstacles and challenges progress of wholesale power? that lie ahead on the road to a single European energy market. 13.15 – 14.30 LUNCH

* invited

5 WHOLESALE POWER

In this series of sessions on trading in electricity across Europe and Speakers will touch on some of the most difficult of these: in key continental regions of Europe we shall examine important • Different wholesale power price zones are not yet consistently developments during 2007 influencing the evolution of prices, defined by true structural congestions rather than national and market accessibility, the terms for grid access, allocation of TSO control area borders congested interconnection capacity and the prompt (or sometime • There is no EU push to make renewable subsidies market-based delayed) availability of information about the use of power sector (even though separate proposals expected in December will infrastructure (the high voltage grid, generating units.) include new, more ambitious targets for renewable power EFET has been advocating to regulators and TSOs that the characte- production). Can traders accept this omission? ristics of accessibility, efficiency, transparency, liquidity and reliability • The European Commission has not yet managed to control should characterise all maturities of contracts for buying and selling the imposition of national regulated or capped prices for wide wholesale power, namely: categories of power consumers. Is the continuation of price • A Forward market regulation to the benefit of industrial and commercial consumers • A Day-Ahead market compatible with a liberalised market? • An Intra-day market and • Will companies trading in power accede to regulators’ • A Balancing market suggestions that they should publish and report details of However, some impediments and distortions stand in the way of this even their OTC deals, with the aim of creating greater “market vision across large parts of Europe. transparency?

Moderator: Peter Styles, Chairman Electricity Committee, Member of the Board EFET

WEDNESDAY 21ST MORNING WEDNESDAY 21ST AFTERNOON

Electricity trading Pan European Electricity trading Central East

09.00 - 09.30 The future of linking Nordic and 14.30 - 15.00 Are electricity traders on the point continental markets, day-ahead of breaking down barriers to entry in and longer term Eastern European countries? Anders Houmøller, Director Denmark, Ante Pogacic, Managing Director Commodities Nord Pool Spot AS, Denmark Origination Central and Eastern Europe, Merrill Lynch Commodities (Europe) Trading, UK 09.30 - 10.00 A view on liquidity and transparency from a newcomer 15.00 - 15.30 The role of Germany and the Bundesnetz Mark Konijnenberg, Citigroup, UK Agentur in Central and Eastern European regional market developments 10.00 - 10.30 COFFEE BREAK Frank Peter Hansen, Bundesnetz Agentur, Germany

10.30 - 11.00 Will there be a single ISO for part of 15.30 - 16.00 Prospects for increasing electricity trade continental Europe? between the UES system and both the Pierre Bornard, Chairman ETSO Steering Com- UCTE and Nordel areas mittee, Managing Director PSD, RTE, France Juha Kekkonen, Executive Vice President, Fingrid, Finland 11.00-11.30 Reforming the way renewable power comes to market in Germany 16.00 - 16.30 COFFEE BREAK Stephan Illerhaus, Head of Business Analysis, Statkraft Markets, Germany 16.30 - 17.30 Roundtable debate between Traders and TSO’s 11.30-11.45 Q&A Topics: - Why is so little cross border capacity 11.45-13.15 OFFICIAL OPENING available? - Do capacity auctions give reliable 13.15-14.30 LUNCH power price signals - Prospects for extending implicit auctions to be East of Germany Above speakers and: Manfred Pils, Verbund Austrian Power Grid, Michaela Karavanou, E.ON Sales and Trading

17.30 - 18.00 ENERGY BUSINESS AWARDS

18.00 - 19.00 RECEPTION

6 RISK MANAGEMENT

Risk Management is about managing risks and not eliminating them. the analysis of the interdependencies in commodity markets and How this is viewed by different market participants you can learn at its impact on risk management. this session and be able to discuss with them. The diversity of the participants and topics should ignite an The presentations will highlight the current topics and latest interesting discussion and contribute to the overall quality of development in risk management for energy markets covering power, the session. gas, carbon and coal. Participants from energy trading and supply, energy-intensive industry, consulting and ﬁnancial players will present their industry-speciﬁc approach and experience in handling risks and opportunities in the trading market.

Topics such as the latest developments, best practice case studies, regulatory challenges will be followed by handling credit risks and impact of carbon on risk management. The session will close with

Moderator: Lars Maehl, Senior Sales Trader, Energy & Commodity Trading, Bayerische Landesbank, Germany

WEDNESDAY 21ST MORNING WEDNESDAY 21ST AFTERNOON

09.00 – 09.30 Regulatory changes and consequences 14.30 – 15.00 Leading risk management – best practice on risk management in risk management from an award Pieter Veuger, Partner, PricewaterhouseCoopers, winning company The Netherlands Grace Sizey, Head of Sales and Origination, Gaselys, France 09.30 – 10.00 Trends in risk management Atle Farstad, Principal, Marsh Risk Consulting 15.00 – 15.30 Importance of credit risk in growing Practice, UK trading markets Tamara Weinert, Credit Manager, Nuon, The 10.00 – 10.30 COFFEE BREAK Netherlands*

10.30 – 11.00 Risk management for an asset- 15.30 – 16.00 Forecasting energy carbon from the backed trader global power sector and key variables Jeffrey Butrico, Chief Risk Ofﬁcer, Essent Energy to watch Trading, The Netherlands Julian Lambert, Manager, Global Energy Decisions, UK 11.00 – 11.30 Risk management in an energy- intensive company 16.00 – 16.30 COFFEE BREAK Aleksander Barabasz, Structured Procurment/ Risk Management (Energy and Feedstock 16.30 – 17.00 Interdependencies of commodities and Europe), Linde AG, Germany impact on risk management Stany Schrans, Energy and Environmental 11.30 – 11.45 Q&A Markets, Global Markets, Fortis, Belgium

11.45 – 13.15 OFFICIAL OPENING 17.00 – 17.30 Panel discussion

13.15 – 14.30 LUNCH 17.30 – 18.00 ENERGY BUSINESS AWARDS

18.00 – 19.00 RECEPTION

* invited

7 LEGAL AND REGULATORY SUMMIT

The 2007 EMART Legal and Regulatory Summit will once again Leading experts from legal practice will look at emissions trading provide a unique industry forum for the consideration of legal and from different angles. We will conclude with a panel discussion regulatory issues critically important to energy trading companies. drawing together each of the issues and topics previously highlighted This year’s Summit will pick up on, expand and develop both legal and encouraging audience participation in the discussion. issues of concern touched upon in previous years’ Summits and new issues which have risen to prominence due to historic developments In the afternoon, we will then examine key areas of financial impacting the energy trading community in the past year. regulation with an impact on energy trading: We will present the current EU MiFID- and CRD-regime of financial regulation for energy This year’s focus will be divided between two primary categories of trading and its implementation in the Member States as well as legal issues impacting energy trading companies. We will start by the future development of this regime in the context of the MiFID- examining solutions around risks pertaining to emissions trading in and CRD-Review. Furthermore, we will explain the practical the morning. We also discuss the potential impact of recent UK case implementation of MiFID and CRD by energy trading firms. law on formation of contracts and standard contract terms.

Moderator: John Varholy, London Ofﬁce managing Partner, Moderator: Karl Peter Horstmann, Head of Fundamental Legal Troutman Sanders, UK and Regulatory matters, RWE Trading, Germany

WEDNESDAY 21ST MORNING WEDNESDAY 21ST AFTERNOON

09.00 – 09.30 Developments in the US carbon markets 14.30 – 15.00 European Regulatory Regime for Kari Larsen, Partner, Mc Dermott Will & Emery, commodity derivatives business (MiFID, UK CAD, MAD) Chris Bates, Partner, Clifford Chance, UK 09.30 – 10.00 Developments in the EU carbon markets and its impact on legal risk management 15.00 – 15.30 Review of MiFID for commodity and Edward Clayman, Associate, Troutman Sanders, commodity process UK Roger Cogan, European Policy Director, ISDA, UK

10.00 – 10.30 COFFEE BREAK 15.30 – 16.00 UK implementations of MiFID and CAD for commodity derivatives business 10.30 – 11.00 Bear Stearns v Forum Global Equity - Stephen Sie, Financial Service Authority, UK what are the legal implications for energy trading? 16.00 – 16.30 COFFEE BREAK Matthew Williams, Partner, Hunton and Williams, UK 16.30 – 17.00 German implementation of MiFID and CAD for commodity derivatives business 11.00 – 11.45 Panel Discussion and practical aspects of MAD John Varholy and Jan Haizmann, Secretary and Michael Cieslarczyk, Partner, DLA Piper, Germany Co-chairman of the EFET Legal Committee and Supervisory Board, Chairman EFETnet and 17.00 – 17.30 Practical aspect of MiFID/CAD, invited speakers implementation by commodity and commodity derivatives ﬁrms/business 11.45 – 13.15 OFFICIAL OPENING Folker Trepte, Partner, PricewaterhouseCoopers, Germany 13.15 – 14.30 LUNCH 17.30 – 18.00 ENERGY BUSINESS AWARDS

18.00 – 19.00 RECEPTION

8 GAS TRADING

Taking gas to the next level

Enhancing liquidity in European gas trading

• Experienced exchange operators are providing new platforms and • The European Commission’s 3rd package could give a new push competing to offer better products, what are the potential growth to gas trading. Hear from the European Commission and ERGEG if opportunities for market participants? the proposals will tackle the lack of harmonisation between TSOs, • Are there real prospects for full integration of the NW European improve the provision of information to market participants and traded gas markets and a step change in liquidity? ensure fully open access to transit routes and storage. • The development of capacity markets and balancing markets • The major players are repositioning themselves for the next phase. throughout NW Europe give the prospect of deeper commodity What are the plans and expectations of companies like Gazprom trading through better interconnection and reduced risk, but when and GasTerra? How will they inﬂuence trading in NW Europe? will these be established?

Moderator: Colin Lyle, EFET Board member, Gas Committee Chairman, Managing Director, Gas Market Insight

WEDNESDAY 21ST MORNING WEDNESDAY 21ST AFTERNOON

New horizons for gas trading 09.00 – 09.20 The development of the Dutch gas roundabout, what’s in for you 14.30 – 14.50 Improving the access to international Stephan Follender, Managing Director, Endex, pipelines The Netherlands - New approaches in South East Europe - one stop shop capacity booking 09.20 – 09.40 Integrating the traded gas markets of - improving information transparency The Netherlands, UK and Belgium Walter Boltz, Vice President Council of European Les Male, Commercial Director, APX, Energy Regulators (CEER) and Board Member European Regulator’s Group for Electricity and The Netherlands Gas (ERGEG), CEO E-Control, Austria

09.40 – 10.00 Panel discussion: The next phase for 14.50 – 15.10 Progress with the third package and North West Europe gas trading implications for gas trading Above speakers and Irfan Mannan, Head of DG TREN* Trading Gas, Power and Emissions, Koch Supply and Trading, UK 15.10 – 15.30 New developments in gas capacity trading Adam Cooper, Vice President Regulatory Affairs, Merrill Lynch Commodities (Europe) Trading 10.00 – 10.30 COFFEE BREAK Limited, UK

10.30 – 10.50 Perspectives of the French Gas market - 15.30 – 16.00 Panel discussion: How can European needs for an exchange legislation help gas trading liquidity? Jean-François Conil-Lacoste, CEO, Powernext, France 16.00 – 16.30 COFFEE BREAK

10.50 – 11.10 Experiences of the new trading 16.30 – 16.50 Commercial opportunities in the year platform in Germany ahead – Gazprom perspective – Keith Martin, Director of Front Ofﬁce, Gazprom -The new Heinrich hub in Germany- Marketing and Trading, UK Maik Neubauer, COO, EEX, Germany 16.50 – 17.10 A major supplier’s view on the future of 11.10 – 11.45 Panel discussion: What growth is gas trading in North West Europe expected in the French and German - How is the BBL pipeline impacting the market traded markets - How this will change in the future? Above speakers and Bart Pycke, Managing Klaus Spiekermann, Executive Director Short Director, Mercuria Energy Trading, Switzerland Term Markets, Gasterra, The Netherlands and Philippe Vedrenne, Managing Director, 17.10 – 17.30 Panel discussion: How the mayor Gaselys, France suppliers are helping the markets?

11.45 – 13.15 OFFICIAL OPENING 17.30 – 18.00 ENERGY BUSINESS AWARDS

13.15 – 14.30 LUNCH 18.00 – 19.00 RECEPTION

* invited

9 WHOLESALE POWER AND TRANSMISSION CAPACITY MARKETS

TSOs are already obliged under EU legislation to offer the maximum whether physical or financial, in the market and in the best practicably attainable amount of cross border capacity, separately position to offer firm transmission hedges to the market. estimated for each trading day and hour of the year on as firm a • We will investigate alternative ways TSOs have of managing the basis as possible. Traders’ interpretation of “fully firm” for this pur- risks involved in offering firm transmission capacity (e.g. by pose entails the provision of compensation at the full cross border re-dispatching generation plant, declaring congestion internally market spread if a TSO has allocated capacity and on their domestic grid, counter-trading, and building new lines subsequently withdraws it for any reason. In this session: or phase shifters.) • We will examine how those wholesale market participants, who • We will discuss how transmission rights can become fungible in are not vertically integrated in a particular national territory, may a secondary, traded market. A secondary markets would allow be enabled to hedge not only their commodity price positions, but market participants to manage their transmission capacity also their transmission cost risks, over various time periods and portfolios, giving especially the possibility to “slice and dice” i.e. across borders. turn an annual or monthly right into hourly pieces, just as traders • We will ask if TSOs are natural sellers of transmission rights, already do in the case of their wholesale electricity transactions.

Moderator: Jonas Törnquist, Head of Transmission and Regulation, Moderator: Peter Styles, EFET EDF Trading, UK

THURSDAY 22TH MORNING THURSDAY 22TH AFTERNOON

Wholesale power Central West Europe Transmission Capacity Markets

09.30 – 10.00 Market coupling between Denmark and 14.00 – 14.30 Why do we need a market for electricity Germany capacity rights Klaus Thostrop, Head of Market Coordination Jonas Törnquist, Head of Transmission and and Surveillance, Energinet, Denmark Regulation, EDF Trading, UK

10.00 – 10.30 Linking Norway to Central West Europe 14.30 – 15.00 Secondary markets in transmission Petter Longva, Head of Origination, Norsk Hydro, capacity rights Norway Marcel Cailliau, Adviser Trading and Portfoliomanagement, Electrabel, Belgium 10.30 – 11.00 COFFEE BREAK 15.00 – 15.30 Effective use of transmission, a matter 11.00 – 11.30 Central West regulators timetable for of proper market design! creating a single power market in Central Thomas Niedrig, Short Term Position Management West Europe (Continental Europe), RWE Trading, Germany Paul Giesbertz, Deputy Manager Wholesale Market, DTe, The Netherlands 15.30 – 16.00 Contractual framework Jan Haizmann, Secretary and Co-chairman of the 11.30 – 12.00 Dutch TSO’s view of extending market Legal Committee & Supervisory Board, Chairman coupling EFETnet Corné Meeuwis, Market and Regulation Manager, TenneT, The Netherlands 16.00 COFFEE BREAK, END OF CONFERENCE

12.00 – 12.30 Linking markets to the south of the Pyrenees and the Alps Juan Rios, Responsible for Origination and Long term Desk, Iberdrola, Spain

12.30 – 14.00 LUNCH

10 EMISSIONS TRADING

The morning session of the Emissions Trading programme will focus The afternoon session will take a look at the post-2012 era. The on market and infrastructure developments in the compliance and 2012-2020 period will be a critical phase for the European power voluntary carbon sectors. The session will benefit from presentations sector, resulting both from the need for substantial investments in by key personalities in the field of carbon regulation and trading. power production, and from the ambitious European CO2 reduction On the Kyoto side, the session includes presentations by UNFCCC targets, which will require a substantial effort from the power sector. representatives on developments in the CDM as well as its potential The EU Emissions Trading Scheme is currently being reviewed, a role in the post-2012 framework and commentary by a Russian process involving the European Commission, Member States and government representative about the latest JI developments on market actors. This process will result in amendments for the EU procedures and processes in Russia. ETS that should position the scheme as a cornerstone for post-Kyoto On the voluntary market side, there will be presentations on the global climate policy. Speakers in this session include EC and private interrelation between the voluntary and compliance markets and on sector representatives, who will shed light on the review process and the role played by the Gold Standard in both markets. the changes that this will bring to European emissions trading, as well In the EU ETS context, the commoditization of EUAs, CERs and ERUs as the impacts of the review for companies covered by the scheme. will be explored in the context of exchange-traded products. Finally, The longer term view of the afternoon session is also reflected in drawing on lessons learnt on price forecasting in Phase 1, there will be presentations on carbon capture and storage (CCS) and investments a presentation on price forecasting techniques applicable in Phase 2. in power generation against a background of carbon constraints.

Moderator: Peter Zaman, Associate, Clifford Chance, UK Moderator: Alexander Savelkoul, Chairman, EFET TF Emissions trading

THURSDAY 22TH MORNING THURSDAY 22TH AFTERNOON

09.30 – 09.50 Improvements in CDM and role of CDM 14.00-14.20 Review EU ETS post 2012 Peter Zapfel, DG Environment Karla Solis-Garcia, Associate Programme Ofﬁcer, Sustainable Development Mechanisms Program- 14.20-14.40 Review EU ETS; Post 2012 – E.ON me, UNFCCC, Germany perspective Stefan Ulreich, Generation strategy, E.ON 09.50 – 10.10 JI in Russia: procedures, expected Energie, Germany volumes and project types Vladimir Berdin, Expert, Nationale Methane 14.40-15.00 Stimulate carbon capture and storage Center, Russia Vattenfall, Sweden*

10.10 – 10.30 Price forecasting for phase 2 and 15.00-15.20 Investing in generation in the light of post-2012 scenarios uncertain co2 regulation Per Lekander, UBS, UK Jens Goebel, Manager Origination, Statkraft, Germany 10.30 – 11.00 COFFEE BREAK 15.20-16.00 Panel discussion 11.00 – 11.20 Voluntary market and the relation to the Kyoto market 16.00 COFFEE BREAK, END OF CONFERENCE Emma Melin, Associate, Essent Energy Trading, The Netherlands

11.20 – 11.40 The gold standard co2 credits for Voluntary and CDM credits Michael Schlup, Director Gold Standard Foundation, Switzerland

11.40 – 12.00 Commoditizing EUAs. CERs, ERUs, (VERs) Peter Koster, CEO, ECX, The Netherlands

12.00 – 12.30 Panel discussion

12.30 – 14.00 LUNCH

* invited

11 GAS TRADING

Hub Development and new opportunities

• The necessity of establishing gas trading as the market liberalises • How will the doubling of Europe’s LNG import capacity affect is now widely understood, and trading hubs are developing gas trading - how will the balance of power change? Hear from throughout Europe. Where will the next liquid hubs develop? the world’s leading authority. • What are the plans to enhance trading at PSV in Italy and for • Why are the US companies returning to Europe, and what the CEGH at Baumgarten, and how might this affect commercial oportunities do they see for expanding the traded gas market? opportunities in the region? • Are there lessons that can be learnt from NW Europe as gas • Will improved price transparency lead to the development of a trading spreads across the continent? How far will the single liquid Iberian gas hub or are other developments necessary? European Gas Market really extend?

Moderator: Stephan Ressl, Head of Business Development, EconGas, Austria

THURSDAY 22TH MORNING THURSDAY 22TH AFTERNOON

09.30 - 10.00 Southern gas initiative, developing 14.00 - 14.30 Progress on hubs in SSE trading opportunities in South Europe Michael Schmöltzer, Director Gas Department, Direccion de Gas, CNE Spain (name tba) E-control Austria, Chair Gas Systems Operation Gas Working group CEER 10.00 - 10.30 Trading prospects at the PSV Mark Hayes, Supply Manager, Blugas, Italy 14.30 - 15.00 How competition and globalised LNG is transforming the structure of European 10.30 - 11.00 COFFEE BREAK gas pricing Patrick Heren, Heren Energy Ltd, UK 11.00 - 11.30 Baumgarten, latest perspective Harald Wuestrich, Managing Director, Central 15.00 - 15.30 Moving to regional gas markets European Gas Hub, Austria - overcoming the barriers to success Sonia Brown, Director of European Strategy and 11.30 - 12.00 The new emerging hubs, producers Environment, OFGEM, UK view point Volker Lischke, Vice President, Dong Energy, 15.30 - 16.00 Return of the Americans to the Denmark European gas market Michael Smith, Vice President, Constellation 12.00 - 12.30 Prospects for LNG in Europe and the Energy, UK implications for gas trading Marie-Francoise Chabrelie, Secretary General, 16.00 COFFEE BREAK, END OF CONFERENCE CEDIGAZ, France

12.30 - 14.00 LUNCH

12 PROCESSING & OPERATIONS

Processing and Operations Energy Operations: optimization of efﬁciency and effectiveness

Energy Trading keeps on gaining liquidity and market depth. From an operational perspective, that implies higher volumes combined with increased complexity. In order to boost efﬁciency and effectiveness, a large part of the currently applied operational processes is subject to review. Several market initiatives are taken, from different perspectives (technical optimisation, business processes standardisation, draft market practices etc). The operations sessions intends to give the audience an insight in these initiatives and aims at gathering market input to continuously align those initiatives to the operational market needs.

Moderator: Colin Cooper, Arthur D. Little, UK

THURSDAY 22TH MORNING THURSDAY 22TH AFTERNOON

09.30 – 10.00 Certiﬁcation as a means to improve 14.00 – 14.30 Energy industry best practices: how process quality, future possibilities to go from e (as in electronic) to o (as Maurice Adriaensen, Co-ordinator EFET eCM in optimal) Test and certiﬁcation Facility, KEMA, Frederieke Brandt, Head of Operations, Sempra The Netherlands Energy Europe, UK

10.00 – 10.30 eCM 14.30 – 15.00 Strategic Approach for the energy -3.3 Swaps operations world: A company - Central Matching perspective Malte Möller, Head Back Office Essen, RWE I Workflow management – dashboard Trading, Germany and steering concept II Business process description and 10.30 – 11.00 COFFEE BREAK documentation Stephan Saal, Head of Back Office Hamburg, 11.00 – 11.30 ePM, A new standardized business Vattenfall, Germany process Steve Banks, Business Process Consultant, 15.00 – 15.30 Strategic approach for the energy Shell Energy Trading Ltd, UK operations world: an EFET/EFET net perspective 11.30 – 12.00 eSM - status Hugh Brunswick, Director, EFETnet Didier Ramon, Head of Invoicing & Settlements within Commodity Operations, Electrabel, 15.30 – 16.00 Panel discussion Belgium 16.00 COFFEE BREAK, END OF CONFERENCE 12.00 – 12.30 Benchmarking Anne Vandormael, Project Management & Business Support within Commodity & Cash Operations, Electrabel, Belgium

12.30 – 14.00 LUNCH

13 PRE-CONFERENCE EVENTS

MONDAY 19 NOVEMBER 2007 TUESDAY 20 NOVEMBER 2007 Time: 10.00 – 16.00 Time: 10.00 – 16.00 Presenters: John Varholy and Edward Clayman – Presenters: John Varholy and Edward Clayman – Troutman Sanders LLP, UK Troutman Sanders LLP, UK

Workshop on the EFET Master Trading Energy Contracting Master Class -- The Universe of EFET and Collateral Agreements Form Documentation Plus A Special Overview of EFET’s Revised Tax Provisions This workshop provides in depth coverage of the form Master Trading Agreements for both Power and Natural Gas, as well as addressing The Energy Contracting Master Class is designed to provide an the EFET Form Credit Support Annex and various Appendices to the in-depth introduction to certain essential ancillary documents Master Agreements. developed by EFET to expand the scope of its Power and Gas Master Trading Agreements, as well as to supplement and link This Workshop is designed as an intensive, across-the-board training those agreements, and other similar trading documents used in seminar for delegates now using or desiring to become familiar for the industry, in order to provide their users with state-of-the-art the first time with the EFET Master Trading Agreements for Power contractual, credit and legal risk mitigation tools. (Version 2.1(a)) and Gas (Version 2.0(a)) currently the industry standard documents used to buy and sell electric power and natural The Master Class will start by closely examining the provisions of gas throughout Europe. The Workshop will also cover the EFET Form the two form EFET Emissions Allowance Appendices, by which Credit Support Annex (Version 1) commonly used to secure trading companies with existing, executed EFET form Power or Gas Master exposures under individual Master Trading Agreements via the Trading Agreements can easily expand the scope of these contracts collection and return of collateral. And finally, the Workshop will into contractual platforms for the trading of Emission Allowances examine each of the country and Hub-specific Appendices to the under the EU cap and trade regime and related systems derived EFET Power and Gas Master Agreements: from the Kyoto Protocols. • TTF Appendix and Guidelines (Dutch Gas) • PEG Appendix (French Gas) Attendees will then progress to an examination of the EFET/IECA • ZBT Appendix (Zeebrugge Gas) European Commodities Schedule (version 1) and the other • NBP Appendix (English Gas) component parts of the the Bond Market Association’s Cross- • DRAFT BEB Appendix (German Gas) Product Master Agreement (the “CPMA,” EFET’s Master Net- • EFET/AIGET PSV Appendix, Version 2.0 (Italy Gas) ting Agreement for European energy products) which can be used • EFET/AIGET/ASSOELETTRICA Italian Electricity Appendix to contractually link trading under different form master trading (Italy Power) agreements into a single, harmonious contractual structure offering • Emissions Allowance Appendices (Carbon and other optimal credit risk mitigation. Next, the Master Class will examine Greenhouse Gas Emission Rights) the EFET form Cross-Product Credit Support Annex (“CPCSA”) to the CPMA (version 1), and consider options for collateralizing trading The Workshop will provide a comprehensive introduction for those exposures at the net level, rather than on a gross basis at the level new to the industry or EFET’s form documents. And for those already of individual master trading agreements. Finally, attendees will using the EFET Master Trading and Collateral Agreements, the examine the EFET form Cross-Product Payment Netting Agreement Workshop will provide a chance to: (version 1.0) by which companies trading different energy • learn the history of the development of these documents, commodities in different markets may harmonize their payment • clarify specific issues with the industry expert on these cycles and thereby optimize related cash flow challenges. agreements, • examine in detail each of the key country and hub-specific Special Examination of New EFET Tax Provisions. This year, the Appendices developed by EFET to supplement the terms of its Master Class will also examine the revised paragraph 14 (VAT and Master Agreements, Taxes) of the EFET Master Trading Agreements for power and gas • understand why and how certain provisions came to be drafted the and the important indirect tax aspects in other sections of this way they were, agreement and the VAT annex. More in particular, VAT relevant • and brush up on the nuts and bolts of each of the EFET form definitions like ‘place of establishment’, ‘taxable dealer’, ‘(partial) Master Trading and Collateral agreements, as well as all related end user’, and most importantly their practical meaning and impact, supplemental Appendices. will be discussed. In addition, the Master Class will address specific tax relevant topics and definitions like ‘Multi Trading Branches’, The Workshop is targeted at and will greatly benefit energy trading ‘Early Termination’, ‘Limitation of Liability’ and the impact these may lawyers (both in-house and in private practice), contracts negotiators have for VAT purposes. Also, the Master Class will briefly look at and administration managers, risk and credit managers and related other indirect taxes (End User Taxes) and the impact these may have personnel and all others who negotiate contracts and document when trading under an EFET Master Trading Agreement. trades in the European energy markets. The Workshop will prepare participants for, and serve as an introduction to and/or refresher Instructors for the Workshop and Master Class: for the continued training on EFET’s other form documents at the The Workshop and Master Class will be presented by Mr. John following day’s Energy Contracting Master Class. Varholy and Edward Clayman of Troutman Sanders LLP, EFET’s outside general counsel for the last six years during which the Workshop on the EFET Master Trading and current versions of each of these documents were developed and Collateral Agreements Price: € 750,- in many cases been updated. Troutman Sanders LLP, an international

14 SEMINAR law firm of over 600 lawyers with offices on three continents TUESDAY 20 NOVEMBER 2007 has an extensive practice running across all areas of the energy Time: 11.00-17.00 industry, with a particular emphasis on energy trading. Mr. Var- Presenters: holy has been one of the principal architects of each of EFET’s Derek Porter, President - Software, Global Energy Decisions standardized documents and several similar industry standard Grant Thain, Vice President, Global Energy Decisions agreements used in North America. Mr. Varholy has served as Managing Partner of the London offices of Troutman Sanders Portfolio Optimisation and Risk Management LLP and currently serves as Practice Group Leader for the firm’s Practical Applications/Case Studies Energy Trading, Hedging and Risk Management Practice. The Master Class is pleased this year to welcome Mr. Harold European power market participants in liberalising electricity Bodewes and Mr. Ronnie Dassen to provide an in depth markets are exposed, and in some markets for the first time, to analysis of the revised Tax provisions now incorporated into market risks. These risks mean that companies have to make new versions of the EFET Power and Gas Master Agreements. increasingly large and complex financial decisions, involving the valuation of power assets (eg capital investment programs), Harold Bodewes profit and revenue analysis (eg portfolio planning), optimising Mr. Bodewes is a Tax Lawyer working for the Dutch Utility Essent trading and hedging decisions (eg trader support and risk in the Netherlands since 2000. Before that he has been working management), in the face of an uncertain market environment. as a tax adviser for Ernst & Young in the Netherlands. Mr. Bode- Making the right decision is now not just about minimising cost, wes is mainly dedicated to assisting Essent’s commodity trading or even maximising profit, but about getting the right balance division with direct and indirect tax expertise. Over the past three between the financial benefit from the decision and its impact years, Mr. Bodewes was a regular participant in the Energy Par- on the potential volatility of future cashflows — in other words, ticipant Indirect Tax Forum (EPITF) in London, a forum that on a regular basis discusses the industry relevant indirect tax issues. measuring and managing the “risk-reward balance”. The nature of the electricity markets makes measurement of risk-reward Ronnie Dassen difficult, as market data is incomplete, positions are not readily Mr. Ronnie Dassen is a manager in Ernst & Young’s Indirect liquidated, the actual portfolio position may change dramatically Tax practice in Rotterdam, the Netherlands. Mr. Dassen is from hour to hour, and physical operating constraints and non- specialised in international VAT and is part of Ernst & Young’s normal distributions make ‘standard’ risk techniques difficult to Commodity Trading Group. Ernst & Young’s Commodity Trading implement. Group is a group of (direct and indirect) tax specialists who are dedicated to advising commodity trading clients in the energy This interactive section examines these issues, explores different business. In this role, over the past 5 years Mr. Dassen has ways of measuring risk and reward in electricity markets, and been advising multiple clients on the VAT aspects of cross bor- discusses a practical approach to valuing an electricity portfolio: der energy trading in physical and financial products. • valuing positions in a power portfolio • taking account of physical constraints The Workshop and Master Class Together: • adding uncertainty By the end of the Workshop and Master Class, attendees will • measuring risk and reward for a power portfolio be familiar with the key procedures, documents and issues • active portfolio optimisation involved in trading power, natural gas and emissions allowances • hedging strategies and trader support throughout Europe. In addition, attendees will know everything they need to start using (or for those already using, to bet- Workshop Program (Session Chair: Derek Porter) ter understand and master), each of EFET’s template trading, collateralization, netting and related ancillary agreements and 11:00 Introductory session on the key risks experienced by form documents. The Workshop and Master Class will focus on power market players in liberalising markets both EFET’s efforts to standardize physical energy trading terms and to improve industry risk mitigation through the widespread adoption of its standard form documents. Particular attention 11:30 Examining the core steps to valuing an electricity portfolio will also be given to various methods and mechanisms for • the components of a portfolio managing legal, contracting and credit risk. • position reporting: the importance of simultaneous valuation of all aspects • portfolio valuation techniques: issues and alternative approaches

12:30 Lunch Energy Contracting Master Class - The Universe of EFET Form Documentation Plus A Special Overview of EFET’s 14:30 Adding uncertainty to the portfolio Revised Tax Provisions Price: € 750,- • Measuring the risk-reward balance • Comparison of different techniques • Application of “risk-reward” in practice (e.g. optimising trading Workshop on the EFET Master Trading and Collateral and hedging decisions) Agreements + Energy Contracting Master Class -- The Universe of EFET Form Documentation Plus A Special Free of charge for conference delegates only, Overview of EFET’s Revised Tax Provisions Price: € 1.050,- limited seats available

15 ENERGY BUSINESS AWARDS, 2007 NETWORKING OPPORTUNITIES

For the first time the Energy Business Awards will be presented at Be sure to take advantage of the networking opportunities EMART Energy on Wednesday 21 November from 17.30-18.00 hrs. offered at this year’s EMART Energy. All networking events take Celebrating their 6th anniversary, the Energy Business Awards place on and around the exhibition floor and provide a great reward excellence in a number of key energy business disciplines – chance to talk with colleagues! to those companies who are making a significant impact on the way energy business is conducted, trading risks mitigated, For your convenience, all networking events are listed. precious energy resources utilised, energy systems developed, environmental degradation curtailed, energy technology advanced, and energy production and consumption distributed more WEDNESDAY 21 NOVEMBER 2007 efficiently and ethically. 10.00 – 10.30 Morning coffee 13.15 – 14.30 Lunch There are 10 Awards as follows: 16.00 – 16.30 Afternoon coffee 17.30 – 18.00 Energy Business Awards 1. Excellence in Energy Trading 18.00 – 19.00 Welcome Reception 20.00 – 00.00 Energy Traders Party 2007 2. Excellence in Energy Risk Management

3. Excellence in Energy Technology THURSDAY 22 NOVEMBER 2007 10.30 – 11.00 Morning coffee 4. Excellence in Energy Policy & Implementation 12.30 – 14.00 Lunch 16.00 Afternoon coffee 5. Excellence in Emission Markets

6. Excellence in Renewable Energy NETWORKING / CYBER LOUNGE If you want to check you emails or hold informal meetings 7. Excellence in Energy Marketing & Communications in a nice relaxing atmosphere, please visit the special networking / cyber lounge. 8. Energy Company of the Year

9. Energy Exchange of the Year

10. Energy Broker of the Year MEDIA PARTNERS

The nominees are announced on www.energy-business.com

From 20th September - 26th October, 2007 your invited to give your votes to one of the nominees in each category drawn up by the Advisory Panel.

CONTACTS The Energy Business Awards, 2007 are adjudicated by Commodities Now magazine and Jeremy Wilcox. Any correspondence associated with these awards should be addressed to:

Guy Isherwood Jeremy Wilcox Editor, Managing Director, Commodities Now magazine The Energy Partnership T: + 44 (0) 20 7584 0000 T: + 44 (0) 1273 327 108 E: [email protected] E: [email protected]

Full details of the categories and their nominees are available from the Energy Business Awards website: WWW.ENERGY–BUSINESS.COM

16 EXHIBITION LIST OF EXHIBITORS (as per 10 september)

Alongside the conference runs a networking exhibition, which Allegro UK provides delegates and visitors the opportunity of seeing the APX The Netherlands latest technology and services essential to gas & electricity Argus Media Group UK BHF Bank Germany utilities. Bloomberg UK Ample time is built into the conference programme. You will Caisse des Dépôts France have numerous opportunities to interact with fellow delegates EFET The Netherlands during social functions, including lunches, cocktail receptions EFETnet The Netherlands and coffee breaks that will take place on the exhibition ﬂoor. Endex The Netherlands eSignal UK WHY SHOULD YOU EXHIBIT? European Climate Exchange The Netherlands European Energy Enxchange Germany • Establish international contacts Genscape International The Netherlands • Premier networking opportunities Global Energy Decisions UK • Generating new business GlobalView Software U.S.A • Launching new products Heren Energy UK • Building brand awareness IntercontinentalExchange UK • Market exposure KEMA The Netherlands LCH Clearnet France

Microgen UK OPENING HOURS Météo France France Wednesday, 21 November Thursday, 22 November Montel Powernews Norway 10.00 – 19.00 hours 09.30 – 16.00 hours Nord Pool Norway Platts UK For more information, please contact: Powernext France Marie-Louise van Rossum, Sales Manager PricewaterhouseCoopers The Netherlands Reuters France Phone: +31 346 290778 Rolfe & Nolan UK Fax: +31 346 590601 The Oxford Princeton Programme U.S.A. E-mail: [email protected] VIZ Risk Management The Netherlands www.emart-energy.com Weather Services International UK

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17 GOLD SPONSOR

More information: www.efet.org More information: www.hunton.com