MERCHANDISER
EnergyDataManagement CITLLinkEndsCER
BeingStronglyDrivenbyIT DeliveryConcerns
INFORMATION TECHNOLOGY will be the major challenge TheEUwillformallyestablishalinkbetweenthebloc’semissions
faced by energy companies for the remainder of this decade, trading scheme (ETS) and the UN International Trading Log (ITL),
with twice as many companies citing the importance of IT endingmonthsofspeculationandconcernaboutwhetherlesscost-
rather than the business challenge of responding to volatile lyUNcreditswouldbeabletobedeliveredintothesystemintime
marketdevelopments.ITwillbethemajordatamanagement tosatisfycontractualobligationsthisDecember.
challengefacedbyenergycompaniesoverthenextthreeyears The Commission said that by mid October the Community
say 40% respondents while only 18% cited business respon- IndependentTransactionLog(CITL),whichmonitorsandtracksthe
sivenesstomarketchallengesasamajorchallenge. trade of EU allowances (EUAs), would be linked to the ITL, which
ThesearetheheadlinefindingsofasurveyofEuropeancom- allowsthetransferofUNapprovedoffsetcredits.
panies commissioned by data management solutions compa- WithmillionsofcheaperUNcredits(CERs)settobetransferredto
nyDataGenic,whichsoughttoprovideanoverviewofthechal- theEUsystem,tradersexpressedreliefandpredictedaboominliq-
lengesandopportunitiesinthemanagementofenergydata. uidityforbothCERsandEUAs.EssentiallytheEUhasnowsetadate
Otherkeyfindingsinclude: for Germany and the UK to issue allowances for Phase II of the
• Almostthreequartersofrespondentshaveapolicyinplace scheme. The two big emitters have repeatedly said they will not
that defines standards for the management and gover- issueEUAsuntilthetwosystemsareconnected.
nanceofdatausedincriticalprocesses. “Whatisclearisthatwewillseeincreasedvolume,whichwillpro-
• Justoverhalftherespondentssaidtheyhadconsideredout- vide more encouragement to the forward market,” says Louis
sourcing non-proprietary data management to a third Redshaw, Director of Environmental Products at Barclays Capital.
party,witheightoutoftenrespondentssayingtheywould “In addition we will get issuance (of EU credits) and a very vibrant
becomfortableoutsourcingnon-proprietarydata. spot EUA market. I think we can anticipate a substantial boost in
• Two-thirds of respondents believe the management of dailytradedvolumes.”
energydatarequiresaspeciallydesignedplatform,withan “I believe this could lead to continued compression of the CER to
in-housesolution beingfavoureddue to its businessimpor- EUA price. Viewed against the context of the prevailing underlying
tanceandcomplexity,withathirdbelievingthereisaneed coal, gas and oil prices, along with an ongoing trend of lower CER
to purchase an externally supplied system specifically built supplyforecasts,itisnotnecessarytodeemthisasbearishforEUAs
tomanagethatdata. intheeventthatalltheCERsactuallygeneratedinPhaseIIwillbe
Commenting on the findings, Richard Quigley, DataGenic used by compliance participants in Japan and the EU ETS and
ManagingDirector,said,“Whilemanydatamanagementproj- national governments,” according to Imtiaz Ahmad, Executive
ectsareITdriven,businessesstillneedtoensurethatendusers DirectorwithMorganStanley.Mostanalystsnowestimatethatthe
contributetheirinsightandrequirementsinorderforanydata number of CERs issued by the UN will be somewhere between 1-2
management initiative to be successful, not only in terms of billioncreditsfrom2008through2012,muchlowerthanthe2.5bil-
cost of ownership and supportability, but in ease of use, func- lion estimated a year ago. The link will unblock a huge number of
tionalityandoverallvalueformoney.”Downloadthesurveyat: issuesandwillpromoteliquidityacrosstheboard.
www.datagenicgroup.com/index.php?id=83 www.pointcarbon.com
VotingbeginsfortheEnergyBusinessAwards2008onthe5
th
ofSeptember.
Forafulllistofthe2008Nomineespleasegoto:
www.energy-business.com
COMMODITIES NOW SEPTEMBER 2008 21
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