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Northern Europe ERI

Northern Europe ERI. Background. Background. Why is market transparency an important issue? Insufficient transparency means that not all market actors have access to the same information Asymmetry of information may lead to adverse effects on market competition and price formation

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Northern Europe ERI

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  1. Northern Europe ERI Background

  2. Background • Why is market transparency an important issue? • Insufficient transparency means that not all market actors have access to the same information • Asymmetry of information may lead to adverse effects on market competition and price formation • This may create the opportunity to market manipulation • Market transparency has been considered very important in the Northern Region

  3. Background • Main categories of information in the energy sector • fundamental / physical / pre-trading data • data related to trading, i.e. transactional data. TRADE POST-TRADE PRE-TRADE MARKET

  4. Northern Europe ERI Fundamental Data Transparency in Northern Europe

  5. Fundamental Data Transparency in Northern Europe • Northern regulatory authorities published aTransparency Report in September 2007 • Benchmark for assessment of transparency in the region • Has led to harmonisation of published information • Most of this information is required by the Congestion Management Guidelines • Our Transparency report has become model for other regions (CWE, CEE, SWE and CSE)

  6. Fundamental Data Transparency in Northern Europe • Regulators of the Northern Europe region committed themselves to monitor the implementation of the Transparency Report by publishing Implementation Reports on: • Load, transmission/interconnectors and balancing (published in July 2008) 2. Generation(to be published in the upcoming weeks)

  7. Northern Europe ERI 2nd Implementation Report

  8. 2nd Implementation Report • Focus of the report is on information regarding: • Installed generation capacity • Planned outages of generation units (ex ante) • Scheduled unavailability of consumption units (ex ante) • Scheduled generation (aggregated / ex ante) • Filling rates of water reservoirs • Forecast and actual generation of wind and solar power • unplanned unavailability of generation units (ex post) • unplanned unavailability of consumption units (ex post) • Actual generation (ex post)

  9. 2nd Implementation Report • Preview on the content and results of the report (1) • The Implementation Report shows that full compliance by all countries is almost achieved. • But – there are some shortcomings • Some information is only available in the national language and not yet in English • Some information is not yet completely available – but will be published soon

  10. 2nd Implementation Report • Preview on the content and results of the report (2) • Some items are not relevant for all countries • Filling rates of water reservoirs: only relevant for Norway, Sweden and Finland – fully compliant • Forecast and actual generation of wind and solar power: only relevant for Denmark and Germany – also fully compliant • Information on unavailability of significant consumption units (>100 MW) – in Poland there are no consumption units of this size

  11. Northern Europe ERI Transparency in Europe – what‘s next

  12. Transparency in Europe – what‘s next • European Commission issued a joint mandate to Energy and Financial Market Regulators (ERGEG and CESR) in December 2007 • Main questions • Is financial market regulation sufficient to secure integrity of energy markets? • What extent of transparency does financial and physical energy trading need?

  13. Transparency in Europe – what‘s next • What did ERGEG/CESR recommend? (among others) • Transparency of trading data (anonymous publication of transactions close to real-time) • COM will present a legislative proposal • Transparency of fundamental data (price sensitive information, e.g. power plant outages) • Comitology guidelines on Transparency

  14. Transparency in Europe – what‘s next • Comitology guidelines on Transparency • In January 2010, the European Commission requested ERGEG (and ENTSO-E) to draft a guideline on fundamental data transparency • Through comitology the EU-Commission can formally adopt this guideline and make it legally binding • This should lead to higher degree of harmonization of fundamental data transparency. • Regulators notion: The guidelines will be based on the Northern Europe Transparency Report

  15. Thank you for your attention! Jan-Welf Selke Bundesnetzagentur Jan-Welf.Selke@BNetzA.de

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