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EFET Legal Committee endorses Individual PRISMA Gas Capacity Contract

Date

30 Apr 2014

Sections

Energy
Today, the Legal Committee of the European Federation of Energy Traders (EFET)1 has endorsed the Individual PRISMA Gas Capacity Contract for secondary gas capacity
trading on the European Capacity platform, which is an important step towards enhancing the functioning of the internal European gas capacity market.
 
Jan Haizmann, Chair of the EFET Legal Committee, however, observed that ‘the diversity of underlying TSO terms has made the task of establishing this new contract
extremely difficult, as it has entailed challenges in finding a balance between potential
liability of buyer and seller of capacity in a secondary market.’
 
In addition, Colin Lyle, Chair of the EFET Gas Committee, warned that ‘trading capacity
at Interconnection Points without first ensuring consistent terms in the bundled TSO
contracts potentially introduces systemic risks into the EU gas market. The
Transmission System Operators urgently need to set out how they are going to make
their contractual terms more consistent. Otherwise, a new EU Network Code will be
necessary to define a standardized firm capacity contract for bundled capacity
throughout the EU transmission systems.’
 
An EFET Appendix, which would have represented the real progress as far as multiple
use documentary cover is concerned, cannot be issued at this stage. The agreed
capacity contract has to be signed individually for each transaction.
 
For further information, please contact:
Maria Popova, EFET Regulatory and Policy Consultant, and Communication Manager
 
1 The European Federation of Energy Traders (EFET) promotes and facilitates European energy trading in open, transparent, sustainable and liquid wholesale markets, unhindered by national borders or other undue obstacles. We currently represent more than 100 energy trading companies, active in over 27 European countries. For more
information, visit our website at www.efet.org.

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