1 / 14

GTE 2nd Annual Conference 23 September 2004, Copenhagen

GTE 2nd Annual Conference 23 September 2004, Copenhagen. Completing the Internal Energy Market for Gas. Johannes ENZMANN Administrator DG Energy and Transport European Commission. EU Market share of natural gas. Implementation – state of play. Transposition until 1st July 2004

clay
Download Presentation

GTE 2nd Annual Conference 23 September 2004, Copenhagen

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. GTE 2nd Annual Conference23 September 2004, Copenhagen Completing the Internal Energy Market for Gas Johannes ENZMANN Administrator DG Energy and Transport European Commission

  2. EU Market share of natural gas

  3. Implementation – state of play • Transposition until 1st July 2004 • Obligation of Member States to notify pursuant to Art 33(1) • State of play 1st July 2004: • 2 MS have notified, another one has finally transposed the Directive • another 2 MS presumably until end of September • 14 MS presumably by end of 2004 • 5 MS in 2005 • derogations

  4. Key provisions of the 2nd Internal Gas Market Directive • Underlying principle: non-discrimination and transparency; • Legal and functional unbundling of networks (natural monopolies) • Unbundling of accounts of integrated companies; • TPA on the basis of regulated tariffs (ex ante approval) • TPA to gas storage facilities (negotiated or regulated) • Full market opening by 2007; all non-households from July 2004; • Regulatory authorities with certain minimum powers

  5. Regulation on Access Conditions: objectives • Complementary measure to Directive 2003/55/EC: it aims at setting minimum requirements for conditions for access to the gas transmission networks • Qualitative market opening as important as quantitative market opening • crucial importance of TPA as the principal tool to open the market and introduce competition • Regulation defines certain minimum requirements with respect to a key element of the Directive, i.e. TPA • level playing field and principles of non-discrimination and transparency

  6. Regulation on Access Conditions: state of play • Adoption of the proposal by the Commission in December 2003 • 1st reading of the European Parliament in April 2004 • Political agreement of the Council in June 2004 • Common Position expected in November 2004 • 2nd reading of the European Parliament • Final adoption presumably in 1st half of 2005

  7. Regulation on Access Conditions: main topics • Submitted in December 2003, political agreement achieved in June 2004 • Topics: • Tariffs • TPA Services • Capacity allocation and congestion management • Transparency requirements • Balancing • Secondary markets • Comitology procedure

  8. Security of Supply Directive – Safeguarding SoS in the internal market • Ensuring the well-functioning of the internal market by • safeguarding security of gas supply • adapting to new market environment • This is achieved by • definition of security of supply policies • determination of roles and responsibilities of market players • determination of minimum output standards

  9. Regulatory Groups • The EU Gas Regulatory Forum • Latest meeting July 2004 • Discusses complementary measures to the Gas Directive i.e. how in practice to ensure competition and non-discrimination; • The European Group of Regulators • Advisory Group • Heads of national regulatory authorities • Assist Commission in consolidating the Internal market for gas and electricity

  10. Access to storage • Directive 2003/55/EC: Art 2(9) and 19 • Interpreting note on TPA to storage • Conclusions of the 7th and 8th Madrid Forum • Need for non-discriminatory and transparent accesss conditions to storage facilities • Guidelines for Good TPA Practice for Storage System Operators (GGPSSO) • Inventory on access conditions stressed the need for GGPSSO covering the issues identified by the Commission and the Regulators, such as • Necessary TPA services, capacity allocation and congestion managment, confidentiality and transparency requirements, tariffs structure, market based mechanisms etc

  11. Overview negotiated – regulated TPA

  12. Overview services

  13. Summary • Also the overall picture looks relatively positive with respect to the range of services offered, there is considerable room for improvement for some operators. • In terms of capacity allocation and congestion management, the prevailing practice might not comply with the requirements of a well functioning competitive market • Transparency requirements need to be clearly defined • Clear rules should ensure non-discrimination • Negotiated tariffs: do they reflect the market value of the service in all cases?

  14. Conclusions • Opening of energy markets key aspect of the Lisbon objective • Proper implementation of 2nd internal gas market directive indispensable, but must be complemented by measures such as the regulation on access conditions • Sufficient?... • … Commission report on progress on the internal market for energy

More Related