Please see below this week's edition of GlobalFlash!
---------------------- Forwarded by Tracy Ralston/EU/Enron on 08/12/2000
From: Enron Europe General Announcement @ ECT
Please respond to Jackie Gentle/LON/ECT
To: ECT Europe, ECT Asia Pacific
Subject: Newsletter: GlobalFlash!
Enron Direct was recently cited by Ofgem for high complaint levels with
regard to account complaints per total customers served. Enron Direct views
the Ofgem customer service measures very seriously and is committed to
improving all aspects of its customer service - even while enjoying continued
strong growth in its retail commodity business. However, the account
complaint level measure is particularly biased against fast-growing new
entrants like Enron Direct. Since all of Enron Direct's customers have
recently switched suppliers - which is when most complaints occur - and our
total customer base is far lower than that of the RECs, our account complaint
levels per customer tend to appear inflated versus the REC peer group. In
fact, Enron Direct's complaint levels for both transfers (i.e., switchers)
and mis-selling, as measured by Ofgem, were well below industry averages.
While we are not yet best-in-class, Enron Direct's portrayal as an industry
laggard in any aspect of customer service is misleading. Stay tuned.
Relations with UPM-Kymmene
As previously announced, Enron Nordic Energy has entered into a two year
energy portfolio management agreement with UPM-Kymmene, the forestry industry
enterprise. This deal creates huge potential for business opportunities
across a wide range of areas for Enron.
As part of the agreement, UPM-Kymmene has requested a dedicated account
manager in Oslo. In order to comply with this request, we have appointed
Sami Tenngren on a full time basis to establish the operational framework and
to coordinate all Enron relations with UPM-Kymmene regarding power related
It is important that all Enron businesses take advantage of this unique
opportunity to generate profitable business relations with UPM-Kymmene. If
you would like to discuss new business opportunities related to worldwide
power with UPM-Kymmene, please contact the Nordic Origination Team. Please
also keep us informed about any other business development issues related to
UPM-Kymmene within other parts of Enron.
Weekly EnronOnline Figures
Below are the latest figures for EnronOnline as of December 6, 2000
* Total Life to Date Transactions < 503,940
* Life to Date Notional Value of Transactions < $301 billion
Worth noting, EOL did $6.7 billion worth of US business on December 4, 2000!
The Sydney Metals Desk is now fully manned. Welcome to Owen Murphy, Max
Sobal and Robert Heynen to the Sydney Office. The Metals Group is already
reviewing the possibilities of utilising the existing metals customer base in
Australia to expand these relationships to include power supply/pricing, a
large component of overall costs. While it is early days, our preliminary
discussions on the idea of pricing for power in relation to metal price is
receiving a positive response.
ENRON IN THE PRESS
Virtual tanker swaps generate $5m freight in real terms
The inclusion of tanker swaps on Enron's online Internet trading platform in
early October has already generated trade for 600,000 tonnes of tanker
freight derivatives contracts worth the equivalent of $5m of freight in real
terms - and all based on just one tanker route.
Volatility in the tanker physical sector prompted Enron to add tanker swaps
to its new online platform. Enron Director, Scott Moncrieff, told Lloyd's
List: "The reason we started tanker forward freight agreements was because of
the volatility. We are experiencing the highest levels of volatility since
the Gulf War."
Based on existing figures, the Enron team believes that growth in the
physical market will fuel freight swaps demand. Mr Moncrieff said: "The
market for physical tanker freight will be over $10b in 2001. This will
obviously expose a lot of people to risk. We want to give our customers as
many options as possible so that it reflects their fleet." Lloyds List
Enron lines up the big players
Enron is on line to introduce big players into the dry bulk freight
derivatives market in the new year.
Enron's Pierre Aury, told Lloyd's List: We are now meeting with banks and
some have volunteered to trade on behalf of their shipping customers.
Hopefully by early next year we should see the first trades with these new
After entering the shipping freight swaps market earlier this year, the
EnronOnline initiative has generated plenty of business, and has, its
creators hope, contributed towards liquidity in the other freight
While Enron would like to see even more business come its way, surprise has
been expressed at how quickly the online market has become established.
"We thought it would have taken longer to take off but we have reached close
to 1.5m tonnes (dry bulk freight swaps) traded online. Some days we are
doing more than the over-the-counter markets. Our dream target would be to
double trade on the forward freight agreement market reasonably quickly,"
said Mr Aury. Lloyds List
Chance for competitive market. Enron wants to trade with Polish energy.
"Experience from West European markets shows, that liberalisation leads to a
decrease in energy prices for end-users, especially plants and companies.
Competition and the TPA rule gives freedom of choice of contractor, and
allows implementation of risk management tools. It also allows potential
investors to objectively evaluate analysed enterprises based on market
research," said Jarek Astramowicz. Parkeit (Polish national daily)
A warm welcome this week to Oliver Fincke (Global Finance), Alex Parsons
(Public Relations), Karin Ahamer (Executive), Julie Russell (Legal), Yvonne
Scorer (HR), Paul De Canha (Fin Ops Glob Systems), Gavin Greenan (IT Front
Office), Phillip Edwards (Trade Accounting), Karen Tomlin (Global Operation),
Malak Hamed (Fin Ops Fin Rptg), Cassandra Chinkin (Underwriting), John
Grounds (EES EAM Dev & Eng), Kevin Heffron (Metals - Brok&Trad), Horst Jauk
(Gas Analytics), Marcus Jagdeo (Research & Trading Controls), Peter Pentecost
(EES T&P Exec), Melissa Allen (Fin Ops Exec), Cecelia Turriago (Metals
Business), Anna Aslanyan (Research & Trading Controls).
FLORA LONDON MARATHON 2001
Enron Europe has secured 10 places in the Flora London Marathon which takes
place on the 22nd April 2001. Places will be given to those who pledge the
most money and give a non-refundable cheque (minimum o500) as a deposit. The
money can then be given to a charity of your choice. Those who wish to apply
should email email@example.com with their choice of charity and the
amount they wish to pledge! Entries and cheques should be in by Monday 18th
GOT SOME LOOSE CHANGE? TIME TO CLEAN OUT THOSE DESK DRAWERS. . .
You've all heard the reminders that we like to maintain a clean desk policy
here at Enron House, but have we told you about the clean desk drawer policy,
too? Starting next week we plan to give everybody a fabulous opportunity to
clean out their desk drawers and off load all those pesky pennies, francs,
lira, escudos, pesetas, rupees, drachma, schillings, deutsch marks, dollars
and any other foreign currency you have kicking around in your drawer into
the two big blue bins in the Forum. UNICEF and Enron have teamed up to give
you a chance to make a fresh start in the New Year with a change-free
drawer. So, join in the fun and empty out those rattling desk drawers --
'cause we'll be calling a desk check come the end of January! Oh, and yes,
if you want to turn over a new leaf at home for the New Year, then gather up
your loose change and drop it off in one of the bins on your way upstairs.
The small print: All loose change will be collected by Travellex foreign
currency exchange bureau for counting and, in the case of foreign currency,
will be exchanged at market rates into pounds sterling. The money will then
be donated to UNICEF -- the United Nation's Childrens Fund -- to support,
among other projects, their worldwide child care immunisation and clean water
QUIZ OF THE WEEK
A bottle of champagne to the winner of this week's quiz.........
What is the longest word that can be made from this set of letters using each
letter only once?
T A R M U H I E C