Training seminar

Gas & electricity prices:
Market fundamentals &
risk management strategies
(2 days)
The objective of this training seminar is to understand the formation
and dynamics of gas and electricity prices, identify the risk factors that
impact prices, and outline different risk management strategies.

Upon completion of the seminar, participants will be able to:
• Understand the structure of the European & international gas
and electricity markets
• Identify the drivers of gas and power prices
• Discern key market risks and areas of uncertainties
• Outline the main strategies that can be applied to
mitigate prices risks
Paris, France / 26-27 October 2010 (English)
Paris, France / 16-17 March 2011 (English)
Paris, France / 27-28 October 2011 (English)

Introduction
Duration: 2 days


The rise of large emerging economies, concerns about future oil and
Who will benefit
gas resources and the financialisation of energy commodities have
joined forces to provoke huge swings in oil, gas and coal prices. Elec-
This seminar is intended for energy sector professional:
tricity prices have in turn been heavily impacted .
•
Energy economists and analysts

•
Business and project developpers
Price volatility and long term uncertainty about future price trends
•
Buyers of gas and electricity
have become a feature of today’s energy markets. In addition to that,
•
Corporate strategists & planners
market liberalisation and climate policies are adding further complexity
•
Risk analysts
to the formation of gas and power prices.
•
EU and national civil servants

•
Finance & accounting managers
This situation has brought new risks to the industry, risks that need to
•
Managers at local authorities and IPPs
be understood and mitigated.
•
New recruits

The seminar organised by Enerdata has 2 main objectives:
Please, fill this form and send it by fax

• to explain the nature and scope of uncertainties impacting gas
and electricity prices and their main drivers


Organisation
• to identify the main strategies that can be applied to mitigate Name ________________________________________
price risks
Department ___________________________________

Number of participants___________________________
Bertrand Château, CEO, Enerdata
Budget________________________________________

About Enerdata
Contact Person
Enerdata is an independant consulting company specialising
Name_________________________________________
in the energy sector.
First name_____________________________________

Position_______________________________________
Enerdata experts and speakers are seasonned energy professionals and
Phone________________________________________
consultants. All have relevant industry or academic experience in gas
Fax___________________________________________
and electricity markets.
Email_________________________________________


Enerdata has been leading training sessions for more than 15 years.
Upon recieving the completed form, we will contact you to

determine your training needs.
Other trainings available

- Initiation to energy modelling
Did you know it?
- Energy efficiency evaluation

- Energy accounting
- CDM Projects
If more than 4 colleagues from the same company are
- Medpro training
interested in this seminar, you can save up to 40% on a

private session!
C
ourse Agenda
Day 1—Gas Prices
________________________________
________________________________ Risks and price fluctuations in the whole-
The European electricity market
Gas prices in international markets
sale gas market: historical overview
___________________________________
________________________________
• The surge in oil prices 2006-2008
Where are we in the liberalisation of the
How does the international gas market
• The crisis in Ukraine
European electricity market?
work?
• The impact of the EU-ETS
• Current status of gas market liberalisation in
• Infrastructure: pipelines and LNG

European countries
terminals
What are the risks?
• Wholesale European markets
• Producers, transporters, buyers
• Supply side and demand side risks
• Interconnections between countries
• Gas supply in Europe
• The future of oil & gas indexation


• Risks and rewards of various sourcing
Purchasing electricity on the wholesale
How are gas prices established in
strategies
market
international transactions?
________________________________
• The spot market
• Main types of gas supply contracts
• The forward market
•
Gas risk management strategies
Indexing mechanisms and their impact on gas
___________________________________

prices
Liberalisation and evolution of prices in
Long term Contracts

•
the wholesale energy market: historical
Outlook on the evolution of gas prices in
General conditions
•
perspective
the international market
Indexing mechanisms, price flexibility
• United Kingdom
•
•
Outlook on the evolution of oil prices
Advantages and disadvantages
• France
•
•
Gas-to-gas competition
Case-study and feedback from past
•
experience
_______________________________
Impact of climate and energy policies

Volatility risks in the
Short term Contracts
European electricity market
• General conditions
________________________________
___________________________________
• Indexing mechanisms, price flexibility
The European gas market
Electricity price volatility
• Advantages and disadvantages
___________________________________
• Definitions and observed past volatility
• Case-study and feedback from past
How far have we gone in the liberalisation
• Short term and long term volatility
experience
of the European gas market?


• Current status of gas market liberalisation in
Volatility risks and future outlook

European countries
• Volatility drivers: carbon and renewable
• Interconnections between countries
energy policies, fossil fuel price evolutions
•
•
Access to gas distribution networks
Day 2- Electricity Prices
Volatility and price risk

• Volatility risk profile of various industry
Gas buying terms for industries
players
•

The main types of contracts
• Spot markets
________________________________
•
________________________________
Futures markets
The cost structure of power genera-
Electricity risk management strategies

tion
___________________________________
Liberalisation and evolution of prices in
___________________________________
Purchasing electricity: modalities
the wholesale gas market: historical
Electricity generation costs
•
perspective
Specificities of electricity

•

Cost structure per type of plant and fuel
•
• Long term and short term contracts
United Kingdom, France, Germany
• Electricity costs sensitivity analysis
________________________________
• Hedging on markets

Risks and uncertainties in the

Evolution of generation costs drivers
European gas market
•
Risk hedging: practical exercise
Fossil fuel and carbon prices
________________________________
•

Commodities and investment costs
What are the major causes of
• Renewable intermittency
uncertainty?

• The oil market
From generation costs to wholesale prices
• Unconventional gas
• Historical overview
• Climate and energy efficiency
• Impact of policy instruments
policies

Gas and Electricity prices: market fundamentals & risk management strategies
Return your completed registration
1– Select your session
26 - 27 October 2010 – Paris, France (English)
16 - 17 March 2011 – Paris, France (English)
27– 28 October 2011 – Paris, France (English)



2– Select your tuition fees
2 500 €, regular price
2 400 €, client/ information service client
We highly recommend you to register two months before the
session to ensure a place.
3 - Tick the following boxes if needed
The training cost will be paid by _________________________
I need a registration confirmation to get my visa
Billing Address if different______________________________
I need a certificate of presence
Address _____________________________________________
Zip Code City _________________________
Country_____________________________________________
I understand and accept the terms and conditions.
Participant details
Name (Ms/Mr)___________________________________________
Date: / / 2010-2011
Last Name_______________________________________________
Participant Signature
Company_________________VAT n° ____________________
Function________________________________________________
Signature and Stamp of Representative
Service__________________________________________________
Address_________________________________________________
Zip Code________________________________________________
City________________________Country______________________
Email___________________________________________________
Phone__________________________________________________
Terms and Conditions
Fax_____________________________________________________
The prices indicated do not include taxes.
The price includes all learning guides and the price of all meals and
refreshments. Hotel costs are not included.
Payment options

I would like to receive a bill with this order number:__________
I am sending a check for_________€ made payable to Enerdata
Billing
I am sending a wire transfer under the reference: PRI0310
A bill will automatically be sent by Enerdata upon receipt of the
Account Name: SAS ENERDATA CEPE
registration form to the address indicated.
Bank Name: BNP PARIBAS
Cancellation
seminar.
If the participant withdraws from the seminar more than 45 days
before the date of the seminar, all payment obligations will be void.
I am paying by credit card and I authorize Enerdata to debit my
50% of the seminar fee will be paid by the participant in the case of
seminar withdrawal less than 45 days before the date of the seminar.
account: MasterCard Visa Amex
If a participant withdraws within 7 days of the seminar date, no
Name (as it appears on card)___________________________________
payment will be refunded.
Card Number_______________________________________________
Enerdata reserves the right to cancel any training session one month
Expiration Date _______ / _____ Cryptogram________________
in advance if the number of participants is too low to stage the
Signature
seminar.
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