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Mr. Ludo Deckers - Prof. Jan Wouters WTO Workshop on Domestic Regulation Geneva, March 29-30, 2004

The Flemish Regulator for the Electricity and Gas Market (VREG) A Case-Study in Light of GATS Principles Some Views on Potential Disciplines. Mr. Ludo Deckers - Prof. Jan Wouters WTO Workshop on Domestic Regulation Geneva, March 29-30, 2004. Part I.

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Mr. Ludo Deckers - Prof. Jan Wouters WTO Workshop on Domestic Regulation Geneva, March 29-30, 2004

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  1. The Flemish Regulator for the Electricity and Gas Market (VREG) A Case-Study in Light of GATS PrinciplesSome Views on Potential Disciplines Mr. Ludo Deckers - Prof. Jan Wouters WTO Workshop on Domestic Regulation Geneva, March 29-30, 2004

  2. Part I The Flemish Regulator for the Electricity and Gas Market (VREG) A Case-Study in Light of GATS Principles Mr. Ludo Deckers, VREG

  3. EU Directive 2003/54 (electricity)(similar for natural gas) Scope Common rules for generation, transmission, distribution and supply of electricity • organisation and functioning of the electricity sector • Grid operators vs suppliers/generators • Published tariffs for grid access • access to the market • criteria and procedures applicable to calls for tenders • granting of authorisations • operation of systems.

  4. Basic Principles of EU Directive (I) • Competitive, secure and environmentally sustainable market without discrimination between undertakings • EU Member States may impose public service obligations But: clearly defined, transparent, non-discriminatory, verifiable and equal access suppliers to customers

  5. Basic Principles of EU Directive (III) • Installation of a Regulator for ensuring non-discrimination, effective competition and the efficient functioning of the market • Measures on consumer protection

  6. Flemish Legislation (I) Electricity and Natural Gas Decrees (2000-01) • Overall objective: reconcile liberalization with • public service obligations • objectives of social and environmental policy

  7. Flemish Legislation (II) • Public service obligations • Minimum supply of electricity • (limited)Free electricity for households • Environment-friendly electricity • Rational use of energy • One invoice • Universal service obligation for connection to distribution grid for electricity

  8. Functions of VREG (I) • Advice to Flemish Government • Supervision compliance with Flemish rules • Attribution and observance of supply licences • Designation and observance of distribution grid operators

  9. Functions of VREG (II) • Definition and observance technical grid codes for distribution grids • Supervision compliance with public service obligations by suppliers and distribution grid operators • Issue of Green Certificates, development and observance of market • Mediation/settlement of disputes on access to distribution

  10. Functions of VREG (III) • Observance Flemish energy market in a European context • Observance behaviour and positioning of market parties • Observance development of competition and, if necessary, guiding this process • Instrument: VREG Market Reports

  11. Part II Some Views regarding Potential Disciplines on Domestic Regulation Prof. Jan Wouters, KU Leuven

  12. Domestic Disciplines and Regulated Industries (I) • Specific features of regulated industries, e.g. electricity/natural gas energy sector • network sectors; natural monopolies; access concerns • universal service concerns • environmental policy concerns

  13. Domestic Disciplines and Regulated Industries (II) • How to define “energy services” for GATS purposes? e.g. • exploration/production • construction of energy facilities • networks • supply • final use

  14. Domestic Disciplines and Regulated Industries (III) • How to apply principles of domestic regulation to regulated industries? • transparency • necessity • equivalency • technical standards • impartiality

  15. Domestic Disciplines and Regulated Industries (IV) • How to reconcile these principles with • public service obligations • objectives of social and environmental policy

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