Transcript Title of presentation

ACER & ENTSOG and their
interaction
Michael Schmoeltzer
Member of ERGEG Gas Working Group
GIE Annual Conference,
6/7 May 2009,
Groningen
Regulators‘ position
on the 3rd package
• European energy regulators welcome the
finalisation of the 3rd package
• Major shortcomings of the original Commission
proposal overcome
• Strong, independent regulators essential to
ensure effective unbundling
• Strengthening of role of agency and
accountability to the European Parliament
welcome
BUT: what‘s next?
GIE Annual Conference, 6/7 May 2009, Groningen
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Basic timeline based on
Gas Regulation
Agency prepares
Framework
Guidelines
EC
requests
ACER to
submit
framework
guidelines
EC defines
priorities
for
network
codes
12 Months
ENTSOG prepares
network codes
EC requests
ENTSOG to
submit
network code
GIE Annual Conference, 6/7 May 2009, Groningen
ENTSOG
submits
network code
to ACER
3 Months
ACER
approves
network
codes
COMITOLOGY
6 Months
ACER submits
network code
to EC when
satisfied,
recommendin
g approval via
Comitology
3
What can be done in the
“interim period”?
• Discussion with Commission, GTE+ and
stakeholders needed
• European energy regulators will test the
envisaged process for developing framework
guidelines and network codes
• European energy regulators are committed to
develop input to framework guidelines (= “Initial
Impact Assessment” / “Justifications”) as far
as possible in close cooperation with ENTSOG
and all other stakeholders
• Still a bit unclear how far preparatory work can
proceed
GIE Annual Conference, 6/7 May 2009, Groningen
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What is a
Framework Guideline?
• No clear definition in the 3rd package
• Non-binding
• Based on the annual priorities as set by the
European Commission
• Basis for development of network codes by
ENTSOG
• Must set out clear and objective principles
• Must contribute to
• Non-discrimination
• Effective competition
• Efficient functioning of the market
GIE Annual Conference, 6/7 May 2009, Groningen
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How to develop Framework
Guidelines – I
Preparatory work
• “Initial Impact assessment” = Justification
• Identification of problems to be addressed ultimately by the
network code
• Identification of objectives that correspond to the problem – what
is the goal of the framework guideline & the subsequent network
code?
• Identification of the main policy options to meet the policy
objectives
• Selection of one (or more) policy option(s)
• Close ENTSOG and stakeholder involvement in this
process, e.g. through possibly
•
•
•
•
Ad hoc expert groups
Workshops
Public consultations
Etc.
GIE Annual Conference, 6/7 May 2009, Groningen
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How to develop Framework
Guidelines – II
Based on this preparatory work
• Development of draft framework guidelines 
• Public consultation on draft framework guidelines for at
least 2 months (including a public hearing if necessary) 
• Finalisation of framework guidelines and submission
to the Commission 
• Agency will ask the Commission to forward the
Framework Guidelines to ENTSOG for the development
of the network codes
• Close ENTSOG and stakeholder involvement in whole
framework development process by regulators/ agency
GIE Annual Conference, 6/7 May 2009, Groningen
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What is a network code?
• Network codes not clearly defined either
• To be based on the framework guidelines
(codes have to “adhere” to guidelines)
• Network codes shall
• Provide and manage effective access to the
transmission networks across border
• Promote cooperation and coordination among
TSOs
• Be without prejudice to the Member States’ rights to
establish national codes for issues with no relevance
for cross-border coordination
• Cover the areas set out in the Regulation taking
into account, if appropriate, regional specificities
GIE Annual Conference, 6/7 May 2009, Groningen
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Steps towards
legally binding network codes
• ENTSOG to develop draft network codes
• Close involvement of Commission, agency/ regulators and other
stakeholders expected
• Exact scope of cooperation with agency/ regulators still to be
discussed
• Agency to assess compliance of network codes with
the relevant framework guideline
• As soon as the agency is satisfied with a network
code,
• Agency will forward the network code to the Commission
• Agency will recommend adoption via Comitology
• Commission may submit the network codes for
adoption through Comitology  after adoption: legally
binding network codes for the whole of the EU
GIE Annual Conference, 6/7 May 2009, Groningen
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What‘s the goal?
• Develop one consistent process from the priority
setting of the Commission to the adoption of legally
binding network codes via Comitology
• Develop input to framework guidelines for most
of the areas during the interim period as input for
the agency
• Support by the Commission, ENTSOG and all other
stakeholders needed
• If possible, develop first drafts for network codes
already during interim period in close cooperation
with the regulators and the Commission
GIE Annual Conference, 6/7 May 2009, Groningen
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WFER IV
Thank you for your attention!
www.energy-regulators.eu
Mark your diary for the World Forum on Energy Regulation IV
October 18-21, 2009
Athens, Greece
www.worldforumiv.info
GIE Annual Conference, 6/7 May 2009, Groningen
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