1. CRE Public Consultation on new exempt interconnectors
FUI Stakeholders Group – Dublin 16th of June 2010

2. Outline Context of the public consultation
Integration into the French regulated system
Next steps

3. Context of public consultation
The objective of CRE public consultation is to define a framework in the French market that allows to:
1) protect grid users,
2) Give visibility to investor, and more generally a transparent and non discriminatory framework,
3) Promote markets integration.
Article 7 of Regulation 1228/2003 defines six conditions under which an exemption may be granted
The assessment of these conditions depends on how new exempted interconnectors are integrated into the French regulated system. Thus, specifying the rules to apply notably in term of grid connection and of tariff for use of the electricity transmission network (TURPE) is needed

4. Integration into the French regulated system
Grid connection
According to current legislation, only a part of grid connection costs could be paid by the exemption’s applicant (shallow cost).
The reinforcement costs will be socialized through the tariff.
If the costs of the new interconnectors overcome benefits from grid users point of view, no exemption will be granted.
Tariff for use of the electricity transmission network (TURPE)
Discrimination between regulated interconnections and exempted ones, as regulated interconnections don’t pay the french grid tariff (TURPE).
 The new interconnectors will not pay the tariff

5. Exemption procedure Additional conditions
If third party access is a principle, the approval power of interconnection capacity allocation rules should be maintained. It allows CRE to ensure that the exemption not deter competition.
In this case, the interconnection capacity should be managed and allocated according to the same principles as for regulated interconnections:
Not discriminatory
Transparent
Secondary market
Firmness
Optimization of the use of capacity interconnection (UIOLI/UIOSI, netting, implementation of European target models)

6. Next steps
The public consultation was organized from of the 4th of May to 3rd of June.
Fall 2010 : publication of the final version of guidelines and synthesis of the contributions to the public consultation.
March 2011 : application of Regulation 714/2009
 Update of the guidelines