1. Jonas Törnquist Jonas.Tornquist@edftrading.com EFET Gas Market Transparency Requirements GTE Transparency Workshop Brussels, 29 May 2007 Törnquist European Federation of Energy Traders 1 Brussels, 29 May 2007

2. 2 Dublin, 23-24 April 2007 Törnquist EFET and Transparency  Information Transparency in Gas Markets (August 2006). See www.efet.org/default.asp?Menu=283 www.efet.org/default.asp?Menu=283  This paper sets out our broad transparency requirements and explains why transparency is very important for efficient markets to develop.  EFET Gas Transparency Requirements (23 May 2007). Same web address as above. The press release is available at www.efet.org/default.asp?Menu=30. www.efet.org/default.asp?Menu=30  This new transparency requirements list details EFET’s expectations of gas market transparency.

3. 3 Dublin, 23-24 April 2007 Törnquist Why transparency is vital  To inform market participants  Creates market confidence in prices and price formation  Improves liquidity as confidence grows  Enables competition on an equal footing  Helps market participants take informed decisions in accessing new markets  To aid capacity purchases  To enable regulators to carry out market monitoring and regulation of network companies and tariffs  To assist security of supply Transparency is vital for market efficiency and access by new entrants

4. 4 Dublin, 23-24 April 2007 Törnquist Transparency requirements  Information should be released unless there is a very good reason not to release it  But of course there is a balance between transparency and proprietary commercial information  Incomplete information restricts its usefulness  Materiality thresholds should be as small as practicable – let the market decide what is material and not EFET has published a detailed list of gas market transparency requirements Take a look at it!

5. 5 Dublin, 23-24 April 2007 Törnquist Content versus form  The initiative from GTE to harmonise access to information is welcome  But the first priority is to have the information published  So please do not let these good efforts to create a platform delay or impede getting important information into the public domain  We are used to gather and analyse data  To gather information efficiently we need it in a readable “raw” format The most important thing is to have the information in the first place

6. 6 Dublin, 23-24 April 2007 Törnquist And just to recap… Transparency is vital for market efficiency and access by new entrants EFET has published a detailed list of gas market transparency requirements The most important thing is to have the information in the first place

7. 7 Dublin, 23-24 April 2007 Törnquist European Federation of Energy Traders Tel: +31 (0)20 5207970 Email: secretariat@efet.orgsecretariat@efet.org www.efet.org