Transcript FG - CEER
ERGEG Advice Comitology Guidelines on Fundamental Electricity Data Transparency Florence Forum 13 December 2010 Bente Danielsen What is fundamental data? Historical and planning data of a technical or economic character having an impact on the IEM and price formation, that is related to 1. 2. 3. 4. transmission network infrastructure; or other infrastructure, including generation and consumption; or any physical measure on transmission network infrastructure; or any market-related transmission network calculation. XVIII 2010 2010 19thFlorence FlorenceForum, Forum,10-11 13-14June December 2 Process for preparing advice • The European Commission requested ERGEG give advice on comitology guidelines on fundamental electricity data transparency in January 2010 • Wide involvement of stakeholders • Joint working group with ENTSO-E (significant ENTSO-E input e.g. on definitions) • 2 workshops organised jointly with ENTSO-E • Bilateral and multilateral discussions with stakeholders, DG ENER, DG COMP • Written public consultation with 33 responses • ERGEG approval on 7 December 2010 XVIII 2010 2010 19thFlorence FlorenceForum, Forum,10-11 13-14June December 3 Problem identification • Poor transparency has adverse effects on market competition and price formation as not all the market actors have access to the same information and an unlevel playing field is created • Asymmetry of information that results from a lack of transparency also creates opportunities for market manipulation • Poor transparency and asymmetry of information act as a barrier to entry and reduce trust in the price formation process and may result in lower liquidity. XVIII 2010 2010 19thFlorence FlorenceForum, Forum,10-11 13-14June December 4 The drivers of the problem Existing legally binding rules on fundamental data transparency in electricity are not detailed enough • has led to differing interpretations of the specific data items, time frames and timings of publication • complicates both implementation by TSOs and the enforcement by regulators • has led to differences in the level of transparency across the Member States XVIII 2010 2010 19thFlorence FlorenceForum, Forum,10-11 13-14June December 5 Policy options Option 1: Continue with the present set up • Congestion Management Guidelines • Compliance monitoring and infringement procedures • NRAs/Agency working through Regional Initiatives Option 2: Legally binding detailed European transparency requirements • • • • Detailed binding rules, definitions, time frames Central information platform to publish data NRAs ensuring compliance at national level The Agency overseeing the central information platform XVIII 2010 2010 19thFlorence FlorenceForum, Forum,10-11 13-14June December 6 Information requirements GENERATION Installed Available Forecast Actual Unavailability of generation units TRANSMISSION Available Forecast Offered Actual use Unavailability of transmission and interconnector assets LOAD Forecast Actual Unavailability of consumption units Balancing mechanism Rules, volumes, prices XVIII 2010 2010 19thFlorence FlorenceForum, Forum,10-11 13-14June December 7 Special issues • Identification of the unavailability of • Generation units • Consumption units • Interconnections and transmission grid • Name, location, bidding area, estimated impact, reason, start and stop date to be provided • Information shall be published as soon as possible and H+1 at the latest • Information on nearly real-time (H+1) generation (unitby-unit) for production units of 100 MW and above XVIII 2010 2010 19thFlorence FlorenceForum, Forum,10-11 13-14June December 8 Central information platform • A central information platform (CIP) shall be established for publishing the information required in the guidelines • ENTSO-E is responsible for ensuring that the CIP complies with the requirements in these guidelines • The guidelines do not preclude in any way the disclosure of the same information, parts of it or more information, on the websites of TSOs and other parties • Agency has regulatory and supervisory tasks • to approve the plan for the CIP in advance • to annually review the efficiency and cost-effectiveness of the CIP based on the report sent by ENTSO-E XVIII 2010 2010 19thFlorence FlorenceForum, Forum,10-11 13-14June December 9 Costs & benefits of the transparency proposition • According to ENTSO-E’s preliminary estimate • The setup cost of the CIP and TSO systems: 10 million euros (one time cost) • Annual costs of running and maintaining the platform and providing data by TSOs: 15 million euros • Additionally, the costs accrued to other providers of data • Quantitative benefits are difficult to assess, however, it can be argued that better transparency lowers risk margin and in that way the price paid for electricity • E.g. if the price decreased by 0,01% the customers could save ca. 10 million and with 1% decrease the saving would amount to 1 billion XVIII 2010 2010 19thFlorence FlorenceForum, Forum,10-11 13-14June December 10 Thank you for your attention! www.energy-regulators.eu XVIII 2010 2010 19thFlorence FlorenceForum, Forum,10-11 13-14June December 11