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Commission’s Proposal for the ownership unbundling

Commission’s Proposal for the ownership unbundling. Theodore C. Panagos Vice Chairman R.A.E. Goal: More effective unbundling. Two options Ownership unbundling of TSO or Independent system operator (ISO). Goal: More effective unbundling. Application

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Commission’s Proposal for the ownership unbundling

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  1. Commission’s Proposal for the ownership unbundling Theodore C. Panagos Vice Chairman R.A.E.

  2. Goal: More effective unbundling Two options • Ownership unbundling of TSO or • Independent system operator (ISO)

  3. Goal: More effective unbundling Application • To transmission networks (not to distribution networks) • Same way to gas and electricity • To both, private an public companies

  4. Ownership unbundling 1 The effective separation of supply and production activities and network operations based on independently run and adequately regulated network operation systems which guarantee equal and open access to transport infrastructures and independence of decisions on investment in infrastructure

  5. Ownership unbundling 2 • Supply companies must not have any interest in network operators and v.v. • Network operators can no longer be affiliated or be part of a group, active in supply, generation and production • Possible to be minority in both supply and network companies

  6. Advantages Positive effects on • prices • investment • market concentration

  7. Independent system operator (ISO) • transmission assets may remain with the vertical integrated company • technical an commercial operation of the assets by ISO • investment decision by ISO • ISO is fully independent from any supply or production interests • Why alternative solution: to overcome the constitutional and other obstacles in various member states

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