The Flemish Regulator for the Electricity and Gas Market (VREG) A Case-Study in Light of GATS Principles Some Views on Potential Disciplines Mr. Ludo Deckers.

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Presentation transcript:

The Flemish Regulator for the Electricity and Gas Market (VREG) A Case-Study in Light of GATS Principles Some Views on Potential Disciplines Mr. Ludo Deckers - Prof. Jan Wouters WTO Workshop on Domestic Regulation Geneva, March 29-30, 2004

Part I The Flemish Regulator for the Electricity and Gas Market (VREG) A Case-Study in Light of GATS Principles Mr. Ludo Deckers, VREG

EU Directive 2003/54 (electricity) (similar for natural gas) Scope Common rules for generation, transmission, distribution and supply of electricity organisation and functioning of the electricity sector  Grid operators vs suppliers/generators  Published tariffs for grid access access to the market criteria and procedures applicable to calls for tenders granting of authorisations operation of systems.

Basic Principles of EU Directive (I) Competitive, secure and environmentally sustainable market without discrimination between undertakings EU Member States may impose public service obligations But: clearly defined, transparent, non-discriminatory, verifiable and equal access suppliers to customers

Basic Principles of EU Directive (III) Installation of a Regulator for ensuring non- discrimination, effective competition and the efficient functioning of the market Measures on consumer protection

Flemish Legislation (I) Electricity and Natural Gas Decrees ( ) Overall objective: reconcile liberalization with o public service obligations o objectives of social and environmental policy

Flemish Legislation (II) Public service obligations o Minimum supply of electricity o (limited)Free electricity for households o Environment-friendly electricity o Rational use of energy o One invoice o Universal service obligation for connection to distribution grid for electricity

Functions of VREG (I) Advice to Flemish Government Supervision compliance with Flemish rules Attribution and observance of supply licences Designation and observance of distribution grid operators

Functions of VREG (II) Definition and observance technical grid codes for distribution grids Supervision compliance with public service obligations by suppliers and distribution grid operators Issue of Green Certificates, development and observance of market Mediation/settlement of disputes on access to distribution

Functions of VREG (III) Observance Flemish energy market in a European context Observance behaviour and positioning of market parties Observance development of competition and, if necessary, guiding this process Instrument: VREG Market Reports

Part II Some Views regarding Potential Disciplines on Domestic Regulation Prof. Jan Wouters, KU Leuven

Domestic Disciplines and Regulated Industries (I) Specific features of regulated industries, e.g. electricity/natural gas energy sector onetwork sectors; natural monopolies; access concerns ouniversal service concerns oenvironmental policy concerns

Domestic Disciplines and Regulated Industries (II) How to define “energy services” for GATS purposes? e.g. oexploration/production oconstruction of energy facilities onetworks osupply ofinal use

Domestic Disciplines and Regulated Industries (III) How to apply principles of domestic regulation to regulated industries? otransparency onecessity oequivalency otechnical standards oimpartiality

Domestic Disciplines and Regulated Industries (IV) How to reconcile these principles with opublic service obligations oobjectives of social and environmental policy