Transcript Title of presentation

ERGEG Benchmarking report on
long term transmission rights
Francesco Cariello
Christophe Gence-Creux
ERI TF co-chairs
XIX Florence Forum 14th December 2010
Outline
• The ERGEG LT benchmarking report
• Lessons learnt
• The ERGEG conclusions paper
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1. The ERGEG benchmarking report
• Improvement and Harmonisation of
allocation rules for long term
interconnection capacity: a top priority
for almost all the Electricity regions
(CWE, CEE, CSE, SWE and FUI)
• 21 out of 28 borders studied
• Benchmark focused mainly on
• Conditions for participating in the auctions
• Characteristics of allocated products and
secondary markets
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2. Which lessons ?
• High level of convergence of the long term auction rules
• Need for harmonisation, within the region and between
regions, notably firmness of both allocated and nominated
capacity, Force Majeure definition, obligations and
responsibilities of parties
• Harmonisation could be facilitated by implementing a common
allocation platform at regional level
 Sharing the same Auction Office among different regions
could further improve the cross-regional harmonisation
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3. Conclusions paper:
the ultimate goal is within reach
• Strong support from all respondents to the public consultation
towards the long-term goal: a European-wide platform operating
a single set of auction rules
• The draft framework guidelines drafted by ERGEG take a
position on the main pending issues:
• Firmness: curtailments compensated at market spread. Physical
firmness for nominated capacity is the preferred approach;
• The level of capacity allocated in the long-term timeframe will be
subject to regulators’ approval;
• The nature of allocated products: FTRs or PTRs, CfDs under
certain conditions
• The organisation of the secondary market: a regional platform for
anonymous secondary trading
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3. Conclusion papers:
A need for a clear action plan
Each region should decide the way towards a single
allocation platform:
• Extension of CASC to the Central-South region and Switzerland
is ongoing: one single platform in 2011; one single set of auction
rules in 2012
• Further possible extension of CASC to the Northern-CWE
borders
• FUI and SWE regions should either establish new regional
auction offices or consider the possible extension of CASC on
their respective borders
• Implementation of harmonised rules with capacity auctioned by
the Capacity Allocation Office in the CEE region
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Thank you for your attention!
www.energy-regulators.eu
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