Energy association EFET divests EFETnet to its managing director

Energy association EFET has divested its ownership in EFETnet to the company’s managing director, Hugh Brunswick. Agreed is that the new ownership structure will have no impact on the continuity and stability of service provision to the association’s members. 

Since the 90’s the European Union has been stimulating energy trading in an open and competitive environment. To come to a more coordinated approach to energy trading activities, large traders of energy (electricity, gas, emission rights, biomass) joined forces in the European Federation of Energy Traders (EFET). Most important objective of the association is to improve the functionality and design of European energy markets and standardise business processes that facilitate trading and regulatory reporting.

EFETnet

In 2003, the EFET launched its own platform to support the electronic data exchange within the energy industry. Named EFETnet, the platform in its early years primarily served as a cost-centre to pool the cost of implementing trading processes, spanning processes such as Electronic Confirmation Matching (known within EFETnet as the ‘eCM’ module), Electronic Position Matching (‘ePM’) and Electronic Settlement (and Invoice) Matching (‘eSM’).Against a backdrop of a rapidly growing and developing European energy market, with digitisation providing all kinds of opportunities and challenges, EFETnet saw its footprint grow steeply in the intervening years. While it had 13 member companies in 2005, by 2013 that number had risen to over 80, and today, EFETnet’s user community numbers in excess of 1,200 energy traders and other market participants. 

In line with market developments, EFETnet’s services have since expanded into new areas, including the delivery of (license-based) solutions and the provision of data services. A major segment in which EFETnet is active today is regulatory reporting – the platform provides its members with solutions and tools that help them comply to requirements stemming from various schemes such as EMIR, REMIT, MAR and MiFID II. 

However, over the years, EFETnet has, according to Hugh Brunswick – who has managed EFETnet since its inception 13 years ago – “significantly outgrown” the EFET membership. With this in mind, Brunswick approached EFET to discuss the potential for separating the platform from the association. Following constructive discussions, the two parties found that a split would, under certain conditions, be beneficial to both the platform as well as EFET members, confirmed Jan van Aken, Secretary General at the association. 

Management buyout led by Hugh Brunswick

On Monday last week the EFET and Brunswick unveiled that they had reached an agreement: Brunswick has acquired EFETnet through a management buyout, while committing to several assurances regarding the future of EFETnet as well as his own involvement. “The EFET Board have balanced the needs of both the EFET membership and the broader EFETnet user community in their decision and decided to pursue the divestment of its ownership interest in EFETnet,” said Van Aken. 

He continued, “We are delighted that Hugh Brunswick has agreed to continue in his role as Managing Director of EFETnet and provided the assurances for continuity and stability of service provision to EFET members and the broader EFETnet user community.” Brunswick, who has given a personal and binding commitment to the terms and principles of the divestment, added “Over the past thirteen years EFETnet has earned the trust and respect of the community – which is critical to what EFETnet does and will continue to do.” 

EFET was advised by consultants from the corporate finance arm of Baker Tilly Berk, the Dutch member firm of international professional services firm Baker Tilly. EFETnet is legally based in the Netherlands, which led the management of EFET and Brunswick to turn to Netherlands based consultancy.

Operating independently, Brunswick, who prior to EFETnet worked in business and IT consultancy for various consulting firms, expects to further expand the services of EFETnet, as well as the roster of clients the platform serves. He also aims to prepare the platform and its users for the next wave of change that will hit the energy industry, such as electronic tade monitoring, blockchain and decentralised energy generation. “We are looking forward to working with the community on more of the same but also many new challenges,” he commented.