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Heinz Hilbrecht Director "Security of Supply and Energy Markets" European Commission - DG TREN 14.4.2008, GRI NW, Amsterdam Regional Cooperation Role of.

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Presentation on theme: "Heinz Hilbrecht Director "Security of Supply and Energy Markets" European Commission - DG TREN 14.4.2008, GRI NW, Amsterdam Regional Cooperation Role of."— Presentation transcript:

1 Heinz Hilbrecht Director "Security of Supply and Energy Markets" European Commission - DG TREN , GRI NW, Amsterdam Regional Cooperation Role of the GRI in the lights of the 3rd package EUROPEAN COMMISSION

2 | 2 Content Overview. 3rd package » Regional Aspects. Outlook GRI NW (roadmap) » Correlation 3rd package - is there still a role for the GRI? » Requirements » Suggestions

3 | 3 3rd package – Interacting Instruments Unbundling Regional cooperation Market Improvement Member States National regulators ACER TSOs balancing transparency storage investments…

4 | 4 3rd package – Regional Tasks  cooperate on a regional level  publish regional investment plan every 2 years  promote operational arrangements  development of energy exchanges  promote allocation of cross-border capacity (implicit auctions)  promote integration of balancing mechanisms TSOsAgency MS  cooperate & promote regional/ bilateral solidarity  integrate national markets at least at regional level  promote cooperation of network operators at regional level  consistency of legal & regulatory framework Nat. regulators  take measures to achieve properly functioning regional markets  cooperate and consult with each other  provide each other and the Agency with necessary information  cooperate at least on a regional level ( eg foster creation of operational arrangements; develop joint electricity exchanges; allocation of cross-border capacity; minimum level of interconnection)  Art 22 decisions in case of cross border investments  monitor the regional cooperation of transmission system operators  Arbitrary function in case of disputes between regulators

5 | 5 Is there still a role for the GRI?. 3rd package » “Explanatory Memorandum” of the Gas and Electricity Directives: “The regulatory framework should promote, coordinate and develop regional initiatives between transmission system operator and regulatory authorities, as happens with the Regional Initiatives led by ERGEG and initiatives such as the Pentalateral forum in Northwest Europe and as recommended by major stakeholders like Eurelectric.”. Which regions? » Geographical area covered by regional cooperations to be defined by EC after consultation with ENTSO and ACER

6 | 6 GRI NW – Roadmap & 3rd Package TSO Forum RCC+ Regional Co- ordination Committees+ ERGEG GTE/GTE+ Workstream National implemen- tation (if necessary) EU legislation National legislation ACER ENTSO 3rd package Regional cooperation GRI NW Roadmap

7 | 7 Way Forward GRI – Requirements. Current concept and structure of the GRI not contradictory to the 3rd package » addresses the 3rd package's concept of regional cooperation » GRI remain a model for practical implementation of regional cooperation. Requirements for way forward » remain in line with/neutral on the 3rd package proposals » focus on practical best practice solutions » transparency and involvement of all stakeholders » not allow for market segregation – ensure consistency with other regions ERGEG work programme GTE/GTE+ work programme TEN initiative of the Commission (regional coordinators) Pentalateral Forum/Gasplatform

8 | 8 Way Forward GRI NW – Suggestions. Current “A priorities” – transparency, capacity » in line with 3rd package » touch core market areas where improvement is needed. BUT: should address “B priorities” asap as well – balancing, gas quality, hubs, storage » Balancing identified as one of the key barriers to competition: too small/too many zones, problems of non-market based charging (EC Sector Inquiry) » 3rd package Market based balancing rules obligatory (spot market or tendered gas term procurement)  as well in region NW » Gas quality identified as barrier to competition (EC Tractebel Study)  especially in region NW


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