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Regional electricity market

Regional electricity market. Janez KOPAČ,Director Energy Community Secretariat. Conference in Belgrade, April 25 th , 2013. At a GLANCE . Geografic scope From theory to praxis The legal parameters – 2nd and 3rd IEM Package Electricity Target Model for the 8th Region

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Regional electricity market

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  1. Regional electricity market Janez KOPAČ,Director Energy Community Secretariat Conference in Belgrade, April 25th, 2013

  2. At a GLANCE • Geografic scope • From theory to praxis • The legal parameters – 2nd and 3rd IEM Package • Electricity Target Model for the 8th Region • Reality check – status quo, open challenges, outlook • Conclusions

  3. EU electricity trading regions Baltic Central East Central South Central West Northern UK-F-IRL South West

  4. Geographic targetEnergy Community vs 8th Region 8th Region

  5. FROM THEORY TO PRAXISElectricty Wholesale Market Opening in the 8th Region   2nd and 3rd IEM package SEE Target Model on WMO Jointly developed by ECRB and ENTSO-E Streamlined with EU electricity target model (different deadlines) The formal framework for WMO in the 8th Region exists already – political committment for real implementation is lacking

  6. REALITY CHECK – 1.Electricty Wholesale Market Opening in the 8th Region

  7. CAPACITY ALLOCATIONStatus Quo 8th Region Source: ECRB, Quarterly Report on the 8th Region, Q1 2013

  8. REALITY CHECK – 2.Electricty Wholesale Market Opening in the 8th Region

  9. TO DO LIST • Enforced committed is needed • To abolish barriers for WMO • To complete the missing pre-conditions • Swift transposition and implementation of the 3rd package • Adoption of EU Network Codes • Active participation of Energy Community NRAs and TSOs in Network Code preparations crucial!

  10. PROPOSAL FOR AN ACTION PLAN

  11. Recommendations of ECS from June 2012 (1) • All Contracting Parties to ensure that eligibility is defined in line with Article 21 of Directive 2003/54/EC, i.e. as the full and unconditional right to choose a supplier for all non-household customers. This requires in particular: • (a) a clear and compliant definition in primary law; • (b) the removal of all conditions and requirements other than the status of being a non-household customer, including references to voltage levels or electricity consumption; • (c) the removal of all administrative obstacles to exercising eligibility such as discretionary or conditional approval by regulatory authorities or market operators, registration requirements, etc.; • (d) ensuring that the right to switch supplier can be exercised continuously (not only by one particular reference date) and swiftly; • (e) the inclusion of resellers in the category of eligible customers, including public suppliers and suppliers of last resort, and the removal of all explicit or structural barriers for them to exercise their eligibility.

  12. Recommendations (2) All Contracting Parties to ensure that the electricity prices for all customers falling within the category defined for the purposes of universal service provision in the first sentence of Article 3(3) of Directive 2003/54/EC (“households and small and medium enterprises”) subject to price regulation are cost-reflective. All Contracting Parties to ensure the cost-reflectivity of network tariffs. All Contracting Parties to define clearly and through legislation the public service objectives pursued by price regulation as well as the notions of vulnerable customers subject to special protection or support. All Contracting Parties to ensure that the electricity prices for all customers not falling within the category defined for the purposes of universal service provision in the first sentence of Article 3(3) of Directive 2003/54/EC (“large customers”) are not subject to price regulation . All Contracting Parties to ensure that the market design does not impede the goals of market opening and price reforms. To that end, the possibility for public supply must be limited to small customers and may not impede eligibility. Furthermore, there must be no legal obligation for the public supplier to buy exclusively from one single generation company or wholesale supplier.

  13. Acronyms • CA(M) – Capacity Allocation (Mechanism) • CM(P) – Congestion Management (Procedure) • IEM – Internal Energy Market • PX – power exchange • RAP – regional Action Plan • SEE – South East Europe • WMO – wholesale market opening

  14. THANK YOU FOR YOUR ATTENTION! QUESTIONS? CONTACT: Janez Kopač Director Energy Community Secretariat Janez.kopac@energy-community.org

  15. Influence of coupled markets on prices

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