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APEx conference Main issues in the new EU Directive 2003/54 and EU Regulation 1228/2003

European Commission DG Energy and Transport. APEx conference Main issues in the new EU Directive 2003/54 and EU Regulation 1228/2003 Leipzig 11.10.2004. Cristobal Burgos Alonso Directorate for Conventional energies Cristobal.Burgos-Alonso@ cec.eu.int. Path to liberalisation

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APEx conference Main issues in the new EU Directive 2003/54 and EU Regulation 1228/2003

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  1. European CommissionDG Energy and Transport APEx conference Main issues in the new EU Directive 2003/54 and EU Regulation 1228/2003 Leipzig 11.10.2004 Cristobal Burgos AlonsoDirectorate for Conventional energiesCristobal.Burgos-Alonso@cec.eu.int

  2. Path to liberalisation Electricity directive Regulation on cross-border trade of electricity Market design Summary

  3. Single Market Treaty 1985 White Paper on Energy Policy 1995 Electricity (1996) and Gas (1998) Directives Lisbon summit 2000 Amendment proposal 2001 Political agreement at Council 2002 Package adopted June 2003 Implementation by 1 July 2004 Path to liberalisation

  4. Directive 2003/54 – electricity Directive 2003/55 – gas Regulation 1228/03 – electricity Most provisions effective from July 2004 The package

  5. Opening to all non-household customers July 2004 Full market opening July 2007 Legal unbundling of transmission by July 2004, distribution by July 2007 Regulated Third Party Access Universal service obligation Duty to monitor security of supply Directive 2003/54/EC

  6. Basic principles for: transmission charges (entry\exit) congestion management (market based and non-discriminatory) inter TSO compensation (actual flows, standard costing method) Comitology procedure to adopt detailed guidelines Regulation 2003/1228/EC

  7. Cross border exchanges Interconnection and market concentration Security of supply and volatile prices Need to deliver environmental objectives Fundamental issues

  8. Regional energy markets in the EU Moderately concentrated Highly concentrated Very highly concentrated congestion

  9. Status of congestion management Source: ETSO

  10. On 25 most congested interconnectors: 12 interconnectors are managed with market-based methods 13 with non-market based methods 14 interconnectors have a joint method agreed between the TSOs/regulators concerned In 11 cases: 50%-50% split of the capacity or capacity has to be obtained from both TSOs or allocation is unilateral Status of congestion management in Europe

  11. Progress in LiberalisationImplementation [1] BE(f) – francophone Belgium (Brussels and Wallonia), BE(n) = Flanders

  12. Second communication on European infrastructure Directive on security of electricity supply Directive on energy services Revision of the Trans-European Energy Networks Guidelines to include accession countries Regulation on access to gas networks Infrastructure package

  13. EU has created the world biggest electricity market Implementation of the legal framework and the practical application of the rules are not yet completed In 2005 EU will produce a report on the functioning of the internal market for electricity and gas After that it will be assessed what further measures are needed Conclusions and Way Forward

  14. Please visit our website http://europa.eu.int/comm/energy/electricity/index_en.htm Thanks for your attention

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