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Joint Workshop EFET and GRI REM SSE, Prague, 21 January 2008

CEER Response to EFET’s R_ISO proposal. Joint Workshop EFET and GRI REM SSE, Prague, 21 January 2008. Regional cooperation among TSOs. Already existing regional TSO cooperation GATRAC platform Austrian Gas Grid Manager (AGGM)

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Joint Workshop EFET and GRI REM SSE, Prague, 21 January 2008

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  1. CEER Response to EFET’s R_ISO proposal Joint Workshop EFET and GRI REM SSE, Prague, 21 January 2008

  2. Regional cooperation among TSOs Already existing regional TSO cooperation • GATRAC platform • Austrian Gas Grid Manager (AGGM) • Merging of market zones in Germany: Eon Gastransport and Bayernets to set up joint company for the purpose of • Balance group management • Operation of the virtual hub • Implementation of a web-based information platform • Nabucco Gaspipeline International GmbH for joint operation and management of capacities

  3. Merits of Regional ISO A regional ISO would facilitate • Coordinated investment planning • Cross-border open season processes • Provisions of coordinated cross-border capacity products, • Harmonization of access • Reduce balancing zones • Coherent information provisions

  4. Operational weaknesses CEER considers that the following weaknesses need to be addressed: • How to arrange the relationship between the R-ISO and the asset owner? • How to make sure that decisions taken by the R-ISO are actually implemented by the TSOs? • How to make sure that the governance structure assures an independently operated entity? • How to arrange inter-TSO compensation mechanisms?

  5. Regional independent system operator Conclusion • CEER shares EFET’s consideration that regional market integration is realised by an regional ISO • CEER considers the regional ISO model to be an additional remedy to effective unbundling • EFET’s regional ISO model is a valid example of how regional TSO cooperation as outlined in Article 2h of the proposed amendment to Regulation 1775/2005 may function in detail However: • Roles and responsibilities need to be defined more clearly • Scope of regions needs to be defined, overlaps should be possible

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