Presentation is loading. Please wait.

Presentation is loading. Please wait.

1 European Commission DG TREN / C: Conventional Energy 05.03.2002 The Regional Electricity Market in South East Europe: Mechanisms and Aims in Unified.

Similar presentations


Presentation on theme: "1 European Commission DG TREN / C: Conventional Energy 05.03.2002 The Regional Electricity Market in South East Europe: Mechanisms and Aims in Unified."— Presentation transcript:

1 1 European Commission DG TREN / C: Conventional Energy 05.03.2002 The Regional Electricity Market in South East Europe: Mechanisms and Aims in Unified European Energy Market Pedro de Sampaio Nunes Pedro de Sampaio Nunes Director of Conventional Energy Director of Conventional Energy Brussels, March 5, 2002 Extraordinary Co-ordination Meeting

2 2 European Commission DG TREN / C: Conventional Energy 05.03.2002 Structure of the presentation l Where are we? - description of the main feature of the status quo of market opening l Where do we want to go? - measures needed to complete the internal market-main elements of Commission initiatives l Conclusions

3 3 European Commission DG TREN / C: Conventional Energy 05.03.2002 Market Opening: Theory and practice Shows variations in: market opening - network access - tariffs /conditions - effectiveness of regulation - market structure - customer switching - prices Completing the Internal Market Benchmarking Report SEC(2001)1957

4 4 European Commission DG TREN / C: Conventional Energy 05.03.2002 Electricity market opening State of play 0102030405060708090100 Austria Belgium Denmark Finland France Germany Greece Ireland Italy Luxembourg Netherlands Portugal Spain Sweden United Kingdom Legal minimum in 2000:30% EU average in 2000: 66% % Legal minimum in 2003: 35% Benchmarking

5 5 European Commission DG TREN / C: Conventional Energy 05.03.2002 Market Market concentration in electricity generation

6 6 European Commission DG TREN / C: Conventional Energy 05.03.2002 Customer switching supplier Benchmarking Estimated switching: electricity

7 7 European Commission DG TREN / C: Conventional Energy 05.03.2002 Completing the internal market: Commission proposals A revision of the Electricity and Gas Directives The draft Directive proposes qualitative as well as quantitative measures to create a truly operational internal energy market A Regulation on cross-border exchanges in electricity The draft Regulation sets rules for cross-border trade in electricity: tarification and congestion management. A Communication: Completing the internal energy market The Communication takes stock of the progress of the internal energy market: degree of opening, prices, environment, security of supply and employment.

8 8 European Commission DG TREN / C: Conventional Energy 05.03.2002 Revision of the Directives: Objectives Quantitative Greater opening of the market higher level of unbundling regulated third-party access independent regulators improve public service provisions safeguard security of supply Full opening of national markets by 2005 Revision of the existing Electricity and Gas Directives Qualitative Better functioning of the market

9 9 European Commission DG TREN / C: Conventional Energy 05.03.2002 Quantitative Full opening of the energy market All EU consumers free to choose electricity and gas suppliers All EU companies free to choose electricity supplier All EU companies free to choose gas supplier 2005 2004 2003 A new timetable for market opening Revision of the existing Electricity and Gas Directives

10 10 European Commission DG TREN / C: Conventional Energy 05.03.2002 Qualitative Unbundling and third party access Member States to ensure that transmission is carried out via an independent system operator, legally and functionally separate from energy generation and sales activities. Independent Distribution System Operators Also a legally and functionally separate undertaking. But Member States may exclude small distribution companies (100 000 consumers) Tariffs to be published and regulated for transmission, distribution and access to LNG Revision of the existing Electricity and Gas Directives Unbundling Independent Transmission System Operators Third party access

11 11 European Commission DG TREN / C: Conventional Energy 05.03.2002 Qualitative Effective regulation Revision of the existing Electricity and Gas Directives Regulatory authorities Independent regulators are pivotal in ensuring non-discriminatory access to the network. Nearly all Member States have established regulatory authorities, save Germany. Regulators will need to: be independent of the electricity/gas industry have a set of minimum competencies including the terms on conditions for network access (tariffs)

12 12 European Commission DG TREN / C: Conventional Energy 05.03.2002 Qualitative Security of supply obligatory pool prohibition of bilateral agreements to hedge risks no tendering for new capacity excessively strict planning procedures (7 years) no internal market in the US no effective trading arrangements The situation in California resulted from inappropriate structures: Such structures do not exist in the EU market careful monitoring at EU and national level tenders where necessary internal market harmonised network security standards Additional safeguards in new proposals Comparison California/EU Revision of the existing Electricity and Gas Directives Security of supply

13 13 European Commission DG TREN / C: Conventional Energy 05.03.2002 Universal service obligation to supply electricity to all at reasonable prices Protection of vulnerable consumers Better protection of consumer rights contractual terms, disputes settlement Continuous benchmark exercise of service levels in Member States Qualitative Improving standards of service Revision of the existing Electricity and Gas Directives Public service The impact so far on service standards has been positive: standards have gone up. The Commission proposes to increase their level further:

14 14 European Commission DG TREN / C: Conventional Energy 05.03.2002 Regulation: New cross-border trade rules Tarification rules Compensation between Transmission System Operators TSOs TSOs will receive compensation or pay for transit flows Cost-reflective compensation Fragmented national cross-border tariffs and pancaking abolished Detailed implementing rules through comitology procedure Regulation on cross-border exchange in electricity Interconnection capacity Information on available interconnection capacity to be made public Better information exchanges between TSOs Allocation of capacity in case of congestion Harmonised market-based approaches to reduce trade distortions Congestion management

15 15 European Commission DG TREN / C: Conventional Energy 05.03.2002 Number of customers having switched suppliers UK Finland 20% 30% France Germany Portugal 5% Most opt for another national supplier Highest where market opening started early Still 15 separate national markets Trade in electricity:around 8% of electricity production Cross border trade tarification rules Congestion management rules Increased interconnection capacity, where Missing elements Regulation: objectives Regulation on cross-border exchange in electricity Create a single EU energy market Spain economically justified

16 16 European Commission DG TREN / C: Conventional Energy 05.03.2002 Infrastructure package A. Energy infrastructure: identifying the challenge Improved use of existing infrastructure Ensuring a stable regulatory environment favourable to infrastructure investments Community political and financial support of priority projects Political commitment Gas supplies to Europe Report on the implementation of TEN Energy guidelines 1996-2001 Draft decision Revising TEN Energy guidelines Communication B. Main findings C. Proposed actions European energy infrastructure

17 17 European Commission DG TREN / C: Conventional Energy 05.03.2002 Main findings and conclusions Infrastructures could be used more efficiently. An increased interconnection level is needed for electricity in a number of Member States Electricity infrastructure suffer in varying degrees from congestion or missing links which hamper the smooth functioning of the internal market and security of supply. 2. Obstacles 3. Actions The Commission proposes to take urgent action in 5 main areas. 1. Assessment In line with good governance principles, actions have been allocated at the most appropriate levels, including industrial. Where necessary Community actions will support and provide a legal basis to give effect to the achieved results. This process will require efforts at both EU and national level.

18 18 European Commission DG TREN / C: Conventional Energy 05.03.2002 Five broad areas of action Ensuring a stable and favourable regulatory environment for new infrastructure Five main areas of actions Improving the use of existing infrastructure Re-focusing Community financial support on priority projects Political awareness and commitment at the Community and national level Encourage gas supplies to Europe

19 19 European Commission DG TREN / C: Conventional Energy 05.03.2002 Conclusions ä Experience thus far is generally positive but further measures are necessary to complete the internal markets for electricity and gas. ä The Completion of the internal market requires both quantitative and qualitative elements, in order to create a level playing field and make market opening effective in practice. ä Rules on public service and security of supply are necessary, to ensure that the competitive market is secure. ä Rules on cross-border trade, a more efficient use and the extension of infrastructure are needed to ensure that the completed market is a real internal Community market ä The Commission proposals are aimed at achieving these objectives - their timely adoption is vital

20 20 European Commission DG TREN / C: Conventional Energy 05.03.2002 THE REM IN SOUTH EAST EUROPE l To create a functioning regional internal market compatible to the EU l To adopt the Community acquis in the most appropriate manner l Ensure security of supply at regional and individual national systems


Download ppt "1 European Commission DG TREN / C: Conventional Energy 05.03.2002 The Regional Electricity Market in South East Europe: Mechanisms and Aims in Unified."

Similar presentations


Ads by Google