Transcript Document

ERGEG to monitor GGPLNG & Further analysis of the tariffs applied to regas TML in EU

LNG Workshop, March 13 th 2009

ERGEG to monitor GGPLNG

GGPLNG

GLE contributed to the development of the GGPLNG • • July 2007, ERGEG launched a pre-consultation → July/September 2007 comments by GLE December 2007, ERGEG launched a public consultation → January 2008 comments by GLE • GGPLNG (May 2008) • • will not go beyond the Directive 2003/55/EC in creating or restricting TPA rights

non-binding guidelines

GGPLNG

• GLE considers that TPA should not be specified (harmonised) beyond the level of general principles.

• This level of regulation also allows that • • each specific business model is preserved and that

existing

jeopardized.

long-term contracts

are

not

Monitoring GGPLNG

• • • GLE is willing to collaborate with ERGEG to monitor the GGPLNG. (see also XV Madrid Forum) However, GLE would like to remind that the GGPLNG are applied on a voluntary basis.

GLE expects a positive result of the monitoring, but only if it leads to further discussion and consensus- building on what provisions of the GGPLNG are currently applied by the regulated LSOs.

Monitoring GGPLNG

• Monitoring results, should be analysed considering • • • the regulatory framework applied in each country, the technical characteristics, and specific business models of the existing LNG terminals in order to avoid • • • • an unstable regulatory framework that would hinder the

LNG market development

any detrimental situation of the market

technically inapplicable requests

to affect current or future investments.

Monitoring GGPLNG

• • Questionnaire on GGPLNG by ERGEG (February 2009) • • • • welcomed and supported by GLE submitted by regulated LSOs first step in monitoring process general overview GLE will be happy to contribute to the analysis as well and, where necessary, give further explanation.

Further analysis of the tariffs applied to regas TML in EU

Tariff analysis

• • • Comparing LNG charges is a complex task due to the fact that tariffs applied by LSOs differ in • • • • levels of service infrastructures government/Regulatory frameworks tariff structure/methodologies GLE agrees with MVV conclusions that a meaningful comparison would be very difficult.

GLE believes that comparison of tariffs levels would not

be a good proxy of cost efficiency.

Thank you for your attention!