Powering Towards Clean Energy in Europe Lord Mogg, CEER President CEER Annual Conference 19 September 2017, Brussels

Welcome to the Conference Agenda Welcome to the Conference Conference Programme Overview of Regulators’ Views on Clean Energy The overall aim of the Council of European Energy Regulators (CEER) is to facilitate the creation of a single, competitive, efficient and sustainable internal market for gas and electricity in Europe. CEER acts as a platform for cooperation, information exchange and assistance between Europe's national energy regulators and is their interface at EU and international level. On EU issues, CEER works very closely with (and supports) the Agency for the Cooperation of Energy Regulators (ACER). CEER actively promotes an investment-friendly and harmonised regulatory environment, and consistent application of existing EU legislation. CEER also strives to share regulatory best practice worldwide through its membership in the International Confederation of Energy Regulators (ICER).

Conference Programme The overall aim of the Council of European Energy Regulators (CEER) is to facilitate the creation of a single, competitive, efficient and sustainable internal market for gas and electricity in Europe. CEER acts as a platform for cooperation, information exchange and assistance between Europe's national energy regulators and is their interface at EU and international level. On EU issues, CEER works very closely with (and supports) the Agency for the Cooperation of Energy Regulators (ACER). CEER actively promotes an investment-friendly and harmonised regulatory environment, and consistent application of existing EU legislation. CEER also strives to share regulatory best practice worldwide through its membership in the International Confederation of Energy Regulators (ICER).

Conference Programme The overall aim of the Council of European Energy Regulators (CEER) is to facilitate the creation of a single, competitive, efficient and sustainable internal market for gas and electricity in Europe. CEER acts as a platform for cooperation, information exchange and assistance between Europe's national energy regulators and is their interface at EU and international level. On EU issues, CEER works very closely with (and supports) the Agency for the Cooperation of Energy Regulators (ACER). CEER actively promotes an investment-friendly and harmonised regulatory environment, and consistent application of existing EU legislation. CEER also strives to share regulatory best practice worldwide through its membership in the International Confederation of Energy Regulators (ICER).

Conference Programme The overall aim of the Council of European Energy Regulators (CEER) is to facilitate the creation of a single, competitive, efficient and sustainable internal market for gas and electricity in Europe. CEER acts as a platform for cooperation, information exchange and assistance between Europe's national energy regulators and is their interface at EU and international level. On EU issues, CEER works very closely with (and supports) the Agency for the Cooperation of Energy Regulators (ACER). CEER actively promotes an investment-friendly and harmonised regulatory environment, and consistent application of existing EU legislation. CEER also strives to share regulatory best practice worldwide through its membership in the International Confederation of Energy Regulators (ICER).

Clean Energy Package Energy regulators broadly welcome the Clean Energy package Our Overview Paper of 23 January 2017 highlighted the key issues The overall aim of the Council of European Energy Regulators (CEER) is to facilitate the creation of a single, competitive, efficient and sustainable internal market for gas and electricity in Europe. CEER acts as a platform for cooperation, information exchange and assistance between Europe's national energy regulators and is their interface at EU and international level. On EU issues, CEER works very closely with (and supports) the Agency for the Cooperation of Energy Regulators (ACER). CEER actively promotes an investment-friendly and harmonised regulatory environment, and consistent application of existing EU legislation. CEER also strives to share regulatory best practice worldwide through its membership in the International Confederation of Energy Regulators (ICER).

ACER-CEER Regulatory White Papers CEER Regulatory White Papers Clean Energy Package Energy regulators published a series of papers explaining our Clean Energy positions on wholesale, network, retail and governance issues CEER has engaged with the EU Institutions and tabled legislative amendments ACER-CEER Regulatory White Papers CEER Regulatory White Papers Renewables in the Wholesale Market May 2017 Distribution and Transmission Network Tariffs and Incentives The Role of the DSO Technology that Benefits Consumers Facilitating Flexibility Consumer Empowerment Efficient Wholesale Price Formation Efficient System Operation June 2017 The Independence of National Regulatory Authorities (NRAs)   Infrastructure July 2017 System Adequacy & Capacity Mechanisms Renewable Self-Consumers and Energy Communities

Key CEER Clean Energy Positions 1. Customers 24-hour supplier switching Data operability, not necessarily a common EU data standard Keep required consumer bill information simple 2. Electricity Market Design All participants should have balance responsibility Allow scarcity pricing - remove price restrictions; rise to value of lost load (VOLL) as determined by NRAs No minimum interconnector target and allow congestion income to reduce domestic network tariffs Maintain flexibility for non-frequency ancillary services

Key CEER Clean Energy Positions 3. Networks / Distribution Distribution becoming increasingly central due to decentralised RES, demand-side, EVs… DSO is a neutral market facilitator: storage & EV charging ownership are competitive activities Maintain flexible local solutions rather than network tariff harmonisation / Network Code Better planning and coordination including between new EU DSO and ENTSO-E

Key CEER Clean Energy Positions 4. Renewables Remove priority dispatch for existing as well as new RES plants Renewable self-consumers and local energy communities should be designed to protect inactive/vulnerable as well as active consumers 5. Maintain 2/3 voting rule in ACER Board of Regulators Ensure adequate BoR role in ACER decision-making

Enjoy the Conference! www.ceer.eu