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1GTE – October 23rd 2003 Regulation of the gas market in France Dominique JAMME Gas Directorate

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Presentation on theme: "1GTE – October 23rd 2003 Regulation of the gas market in France Dominique JAMME Gas Directorate"— Presentation transcript:

1 1GTE – October 23rd 2003 Regulation of the gas market in France Dominique JAMME Gas Directorate

2 2GTE – October 23rd 2003 Agenda CREs role and missions What has been done in 2003 Competition in the south of France Next steps

3 3GTE – October 23rd 2003 CREs role and missions The law of January 3rd 2003 has created a single regulator for both natural gas and electricity, the « Commission de Régulation de lÉnergie » which : proposes tariffs for transmission, distribution and access to LNG terminals is the dispute settlement authority approves the rules for the unbundling of accounts has a general duty of monitoring the good running of the market

4 4GTE – October 23rd 2003 Main actions since 01/2003 (1) First proposal for transmission tariffs Cost plus regulation Reduction by 6.5% of the unit cost of transmission, in current euros More flexibility : –opportunity to suscribe capacities on a monthly or multi annual basis –one virtual balancing point per zone Reduction by 20 % of the link terms between zones

5 5GTE – October 23rd 2003 Main actions since 01/2003 (2) More transparency Capacities and flows : publication of the figures on the TSOs websites for : Max capacities Subscribed capa Available capacities Actual daily flows For all cross-border points and internal zone-link points. Transmission Tariffs –All tariff terms and conditions defined and published –No other spending or rebate for any shipper –Tariffs are applicable to any natural gas shipment in France

6 6GTE – October 23rd 2003 The gas transmission networks in France LNG terminal Entry or exit points in the national network Storage Main transmission network Regional network Gaz H – Gaz L GDF CFM GSO Dunkerque Taisnières H Obergailbach Oltingue Larrau Lacq Fos Montoir Taisnières B

7 7GTE – October 23rd 2003 Competition in the south of France Today : No competitive natural gas in the south of France Short term actions : –Reduction of link terms between zones –More flexibility –Better tariffs for LNG spot cargos Mid or long term actions –Investments to reduce bottlenecks in the transmission network –Development of new LNG terminals (Fos 2 or others…) and new cross border links with Spain –CRE will back these investments with an higher rate of return, case by case … in case of failure, a « gas release » process could be implemented

8 8GTE – October 23rd 2003 Next steps Distribution tariffs proposal (scheduled December 2003) Working groups on the market opening of July 2004 –Contracts, switching –Metering, profiling, invoicing … on the distribution grid, –I.T. systems –Risk management TPA for storage, legal unbundling for TSOs (July 2004 at the latest) Price cap regulation for transmission


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