Transcript No Slide Title

GTE 2nd Annual Conference
23 September 2004, Copenhagen
Completing the Internal
Energy Market for Gas
Johannes ENZMANN
Administrator
DG Energy and Transport
European Commission
Directorate General for Energy and Transport
EU Market share of natural gas
in % of Gross Inland Consumption
35
30
25
20
EU15
EU25
15
10
5
0
2000
2010
2020
2030
EU15
23,3
28,9
32
32,3
EU25
22,8
28,5
31,6
32
Directorate General for Energy and Transport
Implementation – state of play
Transposition until 1st July 2004
Obligation of Member States to notify
pursuant to Art 33(1)
State of play 1st July 2004:
2 MS have notified, another one has finally
transposed the Directive
another 2 MS presumably until end of September
14 MS presumably by end of 2004
5 MS in 2005
derogations
Directorate General for Energy and Transport
Key provisions of
the 2nd Internal Gas Market Directive
 Underlying principle: non-discrimination and
transparency;
 Legal and functional unbundling of networks (natural
monopolies)
 Unbundling of accounts of integrated companies;
 TPA on the basis of regulated tariffs (ex ante approval)
 TPA to gas storage facilities (negotiated or regulated)
 Full market opening by 2007; all non-households from
July 2004;
 Regulatory authorities with certain minimum powers
Directorate General for Energy and Transport
Regulation on Access Conditions:
objectives
 Complementary measure to Directive 2003/55/EC: it
aims at setting minimum requirements for conditions
for access to the gas transmission networks
 Qualitative market opening as important as
quantitative market opening
 crucial importance of TPA as the principal tool to
open the market and introduce competition
 Regulation defines certain minimum requirements
with respect to a key element of the Directive, i.e.
TPA
 level playing field and principles of nondiscrimination and transparency
Directorate General for Energy and Transport
Regulation on Access
Conditions: state of play
 Adoption of the proposal by the Commission in
December 2003
 1st reading of the European Parliament in April
2004
 Political agreement of the Council in June 2004
 Common Position expected in November 2004
 2nd reading of the European Parliament
 Final adoption presumably in 1st half of 2005
Directorate General for Energy and Transport
Regulation on Access Conditions:
main topics
Submitted in December 2003, political
agreement achieved in June 2004
Topics:
Tariffs
TPA Services
Capacity allocation and congestion management
Transparency requirements
Balancing
Secondary markets
Comitology procedure
Directorate General for Energy and Transport
Security of Supply Directive –
Safeguarding SoS in the internal market
Ensuring the well-functioning of the internal
market by
safeguarding security of gas supply
adapting to new market environment
This is achieved by
definition of security of supply policies
determination of roles and responsibilities of
market players
determination of minimum output standards
Directorate General for Energy and Transport
Regulatory Groups
The EU Gas Regulatory Forum
Latest meeting July 2004
Discusses complementary measures to the Gas
Directive i.e. how in practice to ensure competition
and non-discrimination;
The European Group of Regulators
Advisory Group
Heads of national regulatory authorities
Assist Commission in consolidating the Internal
market for gas and electricity
Directorate General for Energy and Transport
Access to storage
 Directive 2003/55/EC: Art 2(9) and 19
 Interpreting note on TPA to storage
 Conclusions of the 7th and 8th Madrid Forum
 Need for non-discriminatory and transparent accesss
conditions to storage facilities
 Guidelines for Good TPA Practice for Storage System
Operators (GGPSSO)
 Inventory on access conditions stressed the need
for GGPSSO covering the issues identified by the
Commission and the Regulators, such as
 Necessary TPA services, capacity allocation and congestion
managment, confidentiality and transparency requirements,
tariffs structure, market based mechanisms etc
Directorate General for Energy and Transport
Overview negotiated – regulated
TPA
BEB
negotiated
NAM
negotiated
BP
negotiated
OMV
negotiated
CSL
regulated
RAG
negotiated
DONG
negotiated
EON-RG
negotiated
Edison
regulated
Stogit
regulated
Enagas
regulated
RWE-TG
negotiated
Fluxys
regulated
VNG
negotiated
GdF
negotiated
Wingas
negotiated
Directorate General for Energy and Transport
Overview services
Bundled Service
UBS
Secondary M
10% of I/W
EBE, cap&com
Interruptible
BEB
SBU
BP
SBU
cap
CSL
SBU
EBE
any unused
DONG
SBU
cap&com
following neg
different IWS
Reverse flow
Dem > avail.
ff capacity
cap&com
Edison
Enagas
SC to book
Fluxys
SBUs
GdF
basic service
NAM
SBU
OMV
range of SBUs
min. capacities
RAG
I=W
tailor made
Ruhrgas
SBU
SBU trading
operational
cap, poss EBE
overcome min.
ltd, but possible
linked to BS
commodity
flexible service
not yet
confirmed
confirmed
Stogit
cap&com
Dem > avail.
RWE/TG
cap, creditw.
if insuffic. I\W
confirmed
confirmed
additional 10%
confirmed
following neg
confirmed
VNG
WC and SC ratio
confirmed
Wingas
Directorate General for Energy and Transport
Summary
 Also the overall picture looks relatively positive with
respect to the range of services offered, there is
considerable room for improvement for some
operators.
 In terms of capacity allocation and congestion
management, the prevailing practice might not
comply with the requirements of a well functioning
competitive market
 Transparency requirements need to be clearly
defined
 Clear rules should ensure non-discrimination
 Negotiated tariffs: do they reflect the market value of
the service in all cases?
Directorate General for Energy and Transport
Conclusions
Opening of energy markets key aspect
of the Lisbon objective
Proper implementation of 2nd internal
gas market directive indispensable, but
must be complemented by measures
such as the regulation on access
conditions
Sufficient?...
… Commission report on progress on
the internal market for energy
Directorate General for Energy and Transport