Energyforum
Risk Management on the Nord Pool Energy Market
4-5 December 2007, Stockholm
Day 1: Tuesday December 4
9.00-9.30 Registration
9.30-9.40 Chairman Professor Lennart Söder opens the conference
Lennart Söder, professor in Electric Power Systems, KTH The Royal Institute of Technology, Stockholm, Sweden
Lennart Söder is head of the division of electric power systems and has been involved in research and education concerning power system security management, wind power, power system control and reliability, treatment of capacity deficit and congestion management in deregulated markets.
9.40-10.25 MiFID and Commodity Derivates
· coverage of commodity derivatives trading by MiFID
· review of MiFID and Capital Requirements Directive relating to commodities
Laurence White European Commission
Laurence White is a securities law specialist with the European Commission. He has been an integral part of the team responsible for the Market in Financial Instruments Directive (MiFID), focusing in particular on markets transparency and conflicts issues. He is also responsible for taking forward some of the Commission's reviews of selected aspects of MiFID including non-equities markets transparency. He has experience as a lawyer and policy adviser at the Commission in Brussels, the Financial Services Authority in London and previously in private and government practice in Australia.
10.25-10.45 Coffee and tea
10.45-11.15 Position of Finansinspektionen on the impact of Mifid on the Swedish energy companies
· How are Swedish energy companies treated under the existing national legislation?
· What impact will the exemption under Art 2.1 a have on Swedish energy companies?
· Other consequences of Mifid.
Ulle-Reet Jakobson , Finansinspektionen
Ulle-Reet Jakobson holds a M.Sc. in business school, has been working at Finansinspektionen since 1991 with various tasks related to bonds and stocks and is currently coordinating international issues. She has also participated in the team for Mifid at level I and in the CESR-team at level II and III. She has participated in the Swedish implementation of Mifid as Finansinspektionens expert in the stock market investigation and regulation.
11.15-12.00 Changes in the regulation and supervision system in Norway as a result of Mifid.
· What is the situation today
· What will change after the implementation of Mifid
· Specific problems concerning the scope of the obligation to acquire a licence
· Challenges for supervision
Britt Hjellegjerde, Senior advisor, Kredittilsynet
Britt Hjellegjerde is a senior advisor at Kredittilsynet in the section for stocks and bonds that regulates and supervises market places and investment services related to Mifid. Ms Hjellegjerdet has several years of experience as a lawyer within corporate law and from the Norwegian Ministry of Oil and Gas.
12.00-13.15 Lunch
13.15-14.00 HYDROELECTRIC PORTFOLIO RISK MANAGEMENT CONSIDERING RISK INDICATORS
- How the type of assets affect the portfolio optimisation?
- Particularities of hydroelectric asset optimisation
- Portfolio optimisation in the electricity market and its specificities
- Risk management in the electricity market subject to VaR and CVaR
- Why CVaR is more appropriate to electricity portfolio optimisation?
Niko A. ILIADIS, EnerCoRD
14.00-14.30 Coffee and tea
14.30-15.15 What are electricity certificates worth - now and in the future?
· How will the prices for certificates develop and what happens when the renewable energy is increased?
· Which new and coming laws are there that will affect the situation?
· Market prices, where can one find good notations?
· How do one analyze the political risk when pricing the certificates?
Peter Chudi, Tricorona and Svensk Kraftmäkling, SKM
Peter Chudi, vice president SKM, works with brokering and business development of climate related market tools. Peter recently worked at E.ON Försäljning where he was head of environmental affairs. Peter has great experience from various areas within the power industry. Head of business development at Graninge, Attaché at Electricite de France within Sustainable Development, Responsible for electricity certificate affairs at Graninge. Lately Peter has contributed to the market development of electricity certificates and guarantees of origin, labeling of origin within Svensk Energi and Eurelectric. Peter Chudi holds a M.Sc. and a licentiate of technology from KTH, The Royal Institute of Technology, Stockholm, Sweden.
15.15-15.45 Middle Office - in the middle of nowhere?
Trond will discuss challenges faces the Middle Office position. How can a Middle Office contribute to value creation?
· The importance of independent reporting
· Getting the management attention you deserve
· Developing people for the Middle Office position
Trond Brevik
Currently heading his own consultancy business within risk management, mainly focusing on energy and commodities. Previously he has been leader of Financial Risk Management Services in Ernst & Young and Arthur Andersen. Trond Brevik has background from the oil industry. He has been in charge of former Norwegian upstream company Saga Petroluem's project economic analyses. He has also several years of experience as an oil market analyst and crude oil trader.
15.45-16.30 Why do derivatives losses occur?
· Practical "lessons learned"
· Exploring the correlation between market risk and operational risk
· Can a proactive approach be applied to reduce the risk?
Patrik Bernhard , Atos
Patrik Bernhard is the Managing Director of Atos Consulting AB. He has fifteen years of experience from working as a consultant with assignments in the Risk Management area. He has been working with numerous clients in the energy sector, as well as in the financial services area.
16.30 -17.00 Questions
19.00 Conference dinner
Day 2: Wednesday December 5
9.00-9.45 EWRM in Statoil
· What is EWRM (Enterprise Wide Risk Management)
· Why EWRM
· Whats in it for the executive management
· Integrating operational and financial risk
· EWRM as an important part of strategic planning
Petter Kapstad, Director of Statoils Corporate Risk Management
Petter Kapstad is director of Statoils Corporate Risk Management. Statoil is the world's 3rd largest crude oil seller and have 26,000 employees with activity in 33 countries and is operating 60% of all Norwegian petroleum production, and marketing 2/3 of Norwegian continental Shelfs gas volumes.
Petter Kapstad joined Statoil in 1994 as financial Cointroller and started to build up Statoils Corporate Risk Management in 1997, which he is now heading.
Prior to Statoil he was working 18 years in banking within risk management and trading. Petter Kapstad is regional director in GARP (Global Ass. of Risk Professionals)
9.45-10.30 The Carbon Market's Impact on Risk Management
· ETS Phase 2: EU Commission's decisions
· What can we expect from CDM/JI?
· Carbon Market up to 2012: long or short?
Helge Zink, Tricorona
Helge Zink has been involved for several years in the environmental and emissions markets from a financial risk management point of view. Helge's focus is especially the EU ETS market participants' situation and the risks and chances evolving from CDM and JI projects.
10.30-11.00 Coffee and tea
11.00-11.45 Risk Management in the Nordic Power market - Accepting risks and still sleeping well at night
· Defining risks
· Isolating risks
· Measuring and reporting
· Core business vs active actions
Magnus Brente, Markedskraft
Magnus Brente is 35 years old and has 5 years of experience with building up portfolio management for end-users from Statoil and 2,5 years of experience with Markedskraft AB working within portfolio management and risk management.
11.45-12.45 Lunch
12.45-13.30 How will IFRS 7 impact disclosures regarding financial instruments
· What requirements will IFRS 7 impose on the company's accounting and reports?
· Which disclosure requirements are causing most concern?
· What are the major differences compared to IAS 32?
· Will IFRS 7 create a better overview of the company's financial risks?
Jenny Andersson and Magnus Ekesund, KPMG
Jenny Andersson is a financial specialist at KPMG's Financial Risk Management. Jenny works as an advisor regarding accounting issues for financial instruments and provides specialist support to audit teams as well as customers. She also works with issues concerning financial instruments and risk management. Jenny has a long background from the financial sector and has a broad and international experience from Citibank.
Magnus Ekesund is a financial specialist at KPMG's Financial Risk Management. Magnus is an specialist within financial risk management with long practical experience from treasury operations, previously having worked at e.g. Stora Finanstjänster and Pharamcia Financial Services. Magnus is also an accounting specialist for financial instruments both regarding IFRS and FAS 133, as well as Swedish GAAP.
13.30-14.00 Coffee and tea
14.00-14.45 The noble art of valuing natural gas facilities without a national gas
exchange
- Finding a suitable proxy for the future gas prices
- Splitting the value into a deterministic seasonal component ("innner value") and a pure option value component ("time value")
- Valuation by Least Squares Monte Carlo
Thomas Lyse Hansen, SNG Rådgivning
Thomas Lyse Hansen holds a M.Sc. in mathematical economics from Aarhus University and a Ph.D. in finance from Copenhagen Business School. He has worked with quantitative finance, real options and commodity price risk management for Energi Denmnark and DONG Energy before establishing the consulting company SNG Rådgivning where he is currently working with the above mentioned areas as a Partner.
14.45-15.30 Panel discussion
15.30-16.00 Questions and Closing of the Conference
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