1. World Forum on Energy Regulation IV Athens, Greece October 18 - 21, 2009 How can competitive markets effectively contribute to energy security ? Bruno LESCOEUR, French Member of the Studies Committee of the World Energy Council Senior Executive Vice President, EDF

2. Bruno Lescoeur - World Forum on Energy Regulation IV - Athens, Greece - October 18-21, 2009 Public policies are key to address the energy challenges The energy sector has to address 3 key challenges : –Security of energy supply –Climate change –Fuel poverty To meet those challenges, Public Policies are key : –The WEC issued recently on an Energy and Climate policy assessment

3. Bruno Lescoeur - World Forum on Energy Regulation IV - Athens, Greece - October 18-21, 2009 WEC World Energy and Climate Policy 2009 Assessment : methodology 1) Quantitative index: –Governance –Economy & Energy security –Climate & Environment –Social Capacity & Equity 2) Analysis of policies put into place by each country –Built on a bottom-up approach –Questionnaires sent to 94 WEC member committees

4. Bruno Lescoeur - World Forum on Energy Regulation IV - Athens, Greece - October 18-21, 2009 WEC World Energy and Climate Policy 2009 Assessment : key lessons (1) Long-term visibility –Investments with long lifetimes –Multiple ‘political cycles’ hinder investments –Independent regulators with clear missions and objectives can contribute to long-term visibility Prices must reflect costs –Price signals reflecting complete costs are key to drive investments –Most WEC member committees report difficulties in this area

5. Bruno Lescoeur - World Forum on Energy Regulation IV - Athens, Greece - October 18-21, 2009 WEC World Energy and Climate Policy 2009 Assessment : key lessons (2) Design of public policies –Potential large-scale systemic effects –Example of the EU-ETS’ design –Importance of regional coordination among regulators Acceptability –All WEC member committees (industrialized and developing countries) report difficulties regarding acceptability of new facilities –The question of legitimacy of regulators is key to address this issue

6. Bruno Lescoeur - World Forum on Energy Regulation IV - Athens, Greece - October 18-21, 2009 APPENDIX

7. Bruno Lescoeur - World Forum on Energy Regulation IV - Athens, Greece - October 18-21, 2009 1. Country Clusters Economic Development (GDP/Capita) Net exports Senegal India Nigeria Russia Norway USA Saudi Arabia Japan ChinaBrazil Exporter Importer UK Germany France Lower IncomeEmergingHigher Income Qatar Australia Cambodia Namibia Turkey Bolivia Kenya Honduras Congo Angola CanadaSouth Africa 2 1 3 4 5

8. Bruno Lescoeur - World Forum on Energy Regulation IV - Athens, Greece - October 18-21, 2009 2. WEC’s Assessment Methodology