1. Status Implementation of the 3rd package Norway 10th Baltic Electricity Market Mini-Forum June 4, 2010 Anne Dønnem, NVE

2. 2 Third package implementation ■ Process for implementation ■ EEA agreement ■ 3 March 2011 ■ 3 public consultations (2007, 2008, 2009) ■ Main areas in the third package ■ Regulatory independence ■ TSO certification ■ Regulatory cooperation ■ ACER

3. 3 Third package implementation ■ EEA country (Norway, Iceland, Lichtenstein + EU countries) ■ 3rd package - 5 legislative acts – all EEA relevant ■ EEA agreement (1994) ■ All EC legislation is dynamically incorporated into the Norwegian national laws and fully implemented in the Norwegian legal system ■ EC Directives, Regulations and Guidelines are implemented wholly ■ Harmonisation of decisions of the Court of Justice within the EEA, including the decisions of the supreme EFTA Court and the European Court of Justice ■ ESA (European Surveillance Authority) is a supervisory body to ensure that EEA countries comply with EU Directives and Regulations ■ There are mechanisms in place to ensure proper implementation and enforcement of EU legislation ■ In practise: No difference between EU Members and EEA countries in the implementation and enforcement of EU Directives and Regulations

4. 4 Third package implementation ■ Regulatory independence ■ One regulator at national level NVE is an electricity regulator ■ Independence NVE has been delegated the powers to take independent decisions according to the Energy Act and Regulations including EU regulations and guidelines when incorporated in the EEA agreement Financed mainly by the state budget ■ TSO certification ■ Only one TSO in Norway – Statnett (100 % state owned) ■ Ownership unbundled (and in accordance with the requirement of the 3rd package since 2002)

5. 5 Third package implementation ■ Cooperation at regulatory level ■ CEER, ERGEG, NordREG ■ The Norwegian Energy Act states that to fulfil Norway's agreed responsibilities towards another country, NVE can without hindrance of legal requirements of confidentiality, communicate confidential information to energy regulators in other EEA/EU-countries when this information is necessary to promote the enforcement of regulations of the electricity market. The receiver of such information must declare to treat this information in confidentiality. ■ ACER ■ Based on the EEA agreement, will have to enter into an art. 31 agreement in order to participate ■ We are committed to participate as close as possible with other regulators in the BoR of ACER

6. Thank you for your attention! Anne Dønnem Norwegian Water and Energy Directorate Tel: + 47 2295 9806 www.nve.no