Gas Regional Initiative Impact of the 3rd package & creation of RIG Benoît Esnault (CRE), GRI TF co-chair NW GRI – RCC and ministerial meeting Paris, 8 June 2009

2NW GRI – RCC & Ministerial meeting, Paris, 08/06/2009 GRI, a forum gathering stakeholders Only 3 years of existence Full involvement of regional lead regulators Acceleration of processes Regular meetings at all the levels (project meetings, RCC, IG, SG) Development of a culture of cooperation Dialogue between regulators, ministries, TSOs and stakeholders on concrete issues. TSOs and stakeholders are associated as project leaders Full dedication and close cooperation of TSOs to develop open seasons Involvement of ministries Concern of the Commission and ERGEG about achievements

3NW GRI – RCC & Ministerial meeting, Paris, 08/06/2009 GRI priorities Shared priorities among regions Regional market integration as an interim step towards the single EU gas market Implementation of ERGEG guidelines and EU regulation 5 vertical topics reported Investment Capacity allocation at interconnection points Security of supply Transparency Harmonization and interoperability Specific role of GRI Deal with concrete issues Voluntary processes Not duplicate the ERGEG works

4NW GRI – RCC & Ministerial meeting, Paris, 08/06/2009 New challenges for the North West region 3rd package Step towards the single market, but consistency among regions Deeper regulatory harmonization Regional 10-year network development plans Security of supply Regional emergency plans Investment in interconnections (reverse flows) Find solutions to “non-domestic” investment issues Challenge: find the right place for the regions, between the national and European levels.

3rd package GRI contribution to the creation of the single EU gas market

6NW GRI – RCC & Ministerial meeting, Paris, 08/06/2009 Regions within the third package Cross border cooperation in the 3rd package Obligation put on regulators to cooperate with neighbouring NRAs and ACER Reinforcement of information exchange between regulators Reinforced role for GRIs Member States or NRAs have to promote regional cooperation of TSOs Improve consistency of technical and legal frameworks Cooperation to optimize network management at the regional level, to develop gas hubs, to coordinate capacity allocation at IPs and to integrate balancing mechanisms

7NW GRI – RCC & Ministerial meeting, Paris, 08/06/2009 Benefits for the creation of the single market Combine top-down and bottom-up processes Implement EU regulations (top down) Feed-back from the market (bottom-up) −Concrete obstacles to integration −National and regional specificities Solve problems on a case-by-case basis −Example: cross-border investment Benefits from cooperation Agreement on objectives Cooperation = key for a successful implementation of the 3rd package −Guidelines (ACER) and codes (ENTSOG) −Learning-by-doing process

Regional Initiatives Group New ambitions for regional initiatives

9NW GRI – RCC & Ministerial meeting, Paris, 08/06/2009 ERGEG Regional Initiatives Group Objective: improve coordination and cooperation between regions Raise the public profile and performance New ambitions for Regional Initiatives Important element in the third package Stimulate the process New expectations Look for synergies between gas and electricity Improved communication Cross-regional coordination to make GRI an effective step towards the completion of the Single Market

10NW GRI – RCC & Ministerial meeting, Paris, 08/06/ RIG action plan Develop consistency among regions Sharing best practices Sharing of knowledge on vertical topics Avoid overlapping with ERGEG work Communication strategy More visibility on progress Explain that improvements sometimes need some time Work on RI role in the 3rd package November conference on RIs

Conclusion Build upon the experience gained in the NW region

12NW GRI – RCC & Ministerial meeting, Paris, 08/06/2009 Lessons and challenges Lessons from projects Transparency: commitments and fruitful emulation among operators Investment: virtual test case promoted by market players But legal obstacles Challenges Complexity of issues Play as a "facilitator" for cross-border problems Security of supply and 10 year network development plans Communication