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Experience with Liberalisation

Experience with Liberalisation. GTE Autumn Conference October 23 rd , 2003 in Paris Reinhard MITSCHEK OMV Erdgas GmbH Transmission and Storage Head of Division. Experience with Liberalisation. Experience with consequences of liberalisation for the regulat ed TSO

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Experience with Liberalisation

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  1. Experience with Liberalisation • GTE Autumn Conference • October 23rd, 2003 in Paris • Reinhard MITSCHEK • OMV Erdgas GmbH • Transmission and Storage • Head of Division

  2. Experience with Liberalisation • Experience with consequences of liberalisation for the regulated TSO • SOS  one of the main topics within the Internal Market • Lack of harmonisation slows down the effect of liberalisation

  3. Experience with Liberalisation • Major aspects of Liberalisation • Different levels of liberalisation combined with different degreesof regulation in MS within the ‘Internal Market’ • Full market opening in Austria provide the possibilities for all customers to change easily the supplier • Suppliers anticipated competition situation  price decline in Austriaalready before implementation of Gas Act • Cost efficiency and price declines are taxed away • Emergence of Traders’ alliances • Long term contracts necessary for SOS • No decoupling of gas prices from prices of oil products

  4. Experience with Liberalisation • Impacts of Regulation • Unbundling means separation cost • Costs of bureaucracy: Regulatory Authority, AGCS, AGGM, etc. • Higher transparency • Pressure on transportation tariffs • Reluctance concerning investments / reinvestments • Increased complexity of gas stream control and monitoring

  5. Experience with Liberalisation • Implications on TSOs’ • More players / more contracts / higher number of transactions • Emergence of Hub activities • Chains of customers -> challenge to track • Short term contracts -> accepted by the market • Interruptible contracts -> not accepted by the market up to now • Harmonisation necessity

  6. Experience with Liberalisation • Gas Release Program 2003 • Gas Release Program executed by CEGH in the name of EconGas • Auction took place in July 2003 • Delivery Period is October 2003 – September 2004 • 25 lots per 10 Mio m³ and 1150 m³/h – Delivery Period • 22 registered companies from six European countries • Ascending clock auction with 22 rounds • 8 successful bidders/buyers with a maximum number of 7 lots

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