1. Michael Schmoeltzer Member of ERGEG Gas Working Group GIE Annual Conference, 6/7 May 2009, Groningen ACER & ENTSOG and their interaction

2. 2GIE Annual Conference, 6/7 May 2009, Groningen Regulators‘ position on the 3 rd package European energy regulators welcome the finalisation of the 3 rd package Major shortcomings of the original Commission proposal overcome Strong, independent regulators essential to ensure effective unbundling Strengthening of role of agency and accountability to the European Parliament welcome BUT: what‘s next?

3. 3GIE Annual Conference, 6/7 May 2009, Groningen Basic timeline based on Gas Regulation EC defines priorities for network codes 6 Months EC requests ACER to submit framework guidelines Agency prepares Framework Guidelines ENTSOG prepares network codes 12 Months EC requests ENTSOG to submit network code 3 Months ACER approves network codes COMITOLOGY ENTSOG submits network code to ACER ACER submits network code to EC when satisfied, recommendin g approval via Comitology

4. 4GIE Annual Conference, 6/7 May 2009, Groningen What can be done in the “interim period”? Discussion with Commission, GTE+ and stakeholders needed European energy regulators will test the envisaged process for developing framework guidelines and network codes European energy regulators are committed to develop input to framework guidelines (= “Initial Impact Assessment” / “Justifications”) as far as possible in close cooperation with ENTSOG and all other stakeholders Still a bit unclear how far preparatory work can proceed

5. 5GIE Annual Conference, 6/7 May 2009, Groningen What is a Framework Guideline? No clear definition in the 3 rd package Non-binding Based on the annual priorities as set by the European Commission Basis for development of network codes by ENTSOG Must set out clear and objective principles Must contribute to Non-discrimination Effective competition Efficient functioning of the market

6. 6GIE Annual Conference, 6/7 May 2009, Groningen How to develop Framework Guidelines – I Preparatory work “Initial Impact assessment” = Justification Identification of problems to be addressed ultimately by the network code Identification of objectives that correspond to the problem – what is the goal of the framework guideline & the subsequent network code? Identification of the main policy options to meet the policy objectives Selection of one (or more) policy option(s) Close ENTSOG and stakeholder involvement in this process, e.g. through possibly Ad hoc expert groups Workshops Public consultations Etc.

7. 7GIE Annual Conference, 6/7 May 2009, Groningen How to develop Framework Guidelines – II Based on this preparatory work Development of draft framework guidelines  Public consultation on draft framework guidelines for at least 2 months (including a public hearing if necessary)  Finalisation of framework guidelines and submission to the Commission  Agency will ask the Commission to forward the Framework Guidelines to ENTSOG for the development of the network codes Close ENTSOG and stakeholder involvement in whole framework development process by regulators/ agency

8. 8GIE Annual Conference, 6/7 May 2009, Groningen What is a network code? Network codes not clearly defined either To be based on the framework guidelines (codes have to “adhere” to guidelines) Network codes shall Provide and manage effective access to the transmission networks across border Promote cooperation and coordination among TSOs Be without prejudice to the Member States’ rights to establish national codes for issues with no relevance for cross-border coordination Cover the areas set out in the Regulation taking into account, if appropriate, regional specificities

9. 9GIE Annual Conference, 6/7 May 2009, Groningen Steps towards legally binding network codes ENTSOG to develop draft network codes Close involvement of Commission, agency/ regulators and other stakeholders expected Exact scope of cooperation with agency/ regulators still to be discussed Agency to assess compliance of network codes with the relevant framework guideline As soon as the agency is satisfied with a network code, Agency will forward the network code to the Commission Agency will recommend adoption via Comitology Commission may submit the network codes for adoption through Comitology  after adoption: legally binding network codes for the whole of the EU

10. 10GIE Annual Conference, 6/7 May 2009, Groningen What‘s the goal? Develop one consistent process from the priority setting of the Commission to the adoption of legally binding network codes via Comitology Develop input to framework guidelines for most of the areas during the interim period as input for the agency Support by the Commission, ENTSOG and all other stakeholders needed If possible, develop first drafts for network codes already during interim period in close cooperation with the regulators and the Commission

11. 11GIE Annual Conference, 6/7 May 2009, Groningen WFER IV Thank you for your attention! www.energy-regulators.eu Mark your diary for the World Forum on Energy Regulation IV October 18-21, 2009 Athens, Greece www.worldforumiv.info