The EFET agreements and supplementary documentation library are currently the industry standards used throughout Europe for trade in physical electricity and gas. The EFET agreement is a master clearing agreement that can cover an unlimited number of transactions defined as “individual contracts”. Individual contracts include the economic conditions of each trade (e.g. B start and end dates, delivery schedules, contract capacity and quantity, price and total cost). In addition to promoting regulatory measures enabling free trade in electricity and gas in a balanced risk environment, EFET has also established uniform legal documentation for energy trade. These standardized framework contracts for the supply and purchase of electricity or natural gas offer a structure similar to that of the International Swaps and Derivatives Association Inc. (ISDA) have published framework contracts for OTC derivatives. EFET has published two main documents – the General Efet Agreements on Electricity (Electricity) and Gas, which are standard contracts that can be used by traders to increase liquidity in the wholesale market by setting standard conditions for underlying transactions. Founded in 1999, the European Federation of Energy Traders (EFET) brings together more than 100 energy traders in 27 European countries operating in the wholesale electricity and gas market. Its creation is explained by the easing of restrictions on the electricity and gas markets within the European Union. In any case, the General Agreements outline the concept of the agreement very early in the document (section 1.1), which means that all transactions depend on each other and that a default in a transaction is recorded as a delay among all transactions covered by the agreement This platform is used to record and publish changes that, under BREXIT, become legally applicable to legal persons and shipping. Registration on this platform is only possible for companies established in the UK.
There are also country- and country-specific annexes, which have been developed by EFET to complement the terms of the general agreements, including: any changes to the standard text should be made in the electoral bulletin and not in the main part of the general agreement. The framework agreement contains a number of general terms and conditions of sale on delivery terms, payments, risks of non-delivery and closed compensation. . . .