How the 3rd package should improve effective unbundling and regional cooperation

Alejo Vidal-Quadras Roca

Vice-president of the European Parliament Member of the ITRE Committee Regional Initiatives: Europe’s key to energy market integration Joint Conference by the European Commission and ERGEG Brussels, 27th February 2008

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Overview and timeline

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October 2007

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Directives - gas and electricity Regulations – gas, electricity and European Agency of Regulators European Parliament: 5 rapporteurs Close cooperation between rapporteurs to ensure coherence First reading in early June 2008 Important: cooperation between institutions

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The European Parliaments’ internal market priorities

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Removal of administrative and political barriers to market integration

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Ownership unbundling Stronger framework of cooperation for market players

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Strong independent regulators at national and EU level

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Principle of reciprocity

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Specificities of the energy sectors Complex system:

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Competition/market level

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Geo-strategic level

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National level

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Internal market aspects Legislation aims to achieve: Fully integrated EU energy markets True competition Adequate market prices

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Gas and Oil exporting countries

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External and national aspects National Consumer protection External Principle of reciprocity

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European Commission’s proposal: key aspects 1. Effective unbundling

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Ownership unbundling ISO 2. Role of national regulators

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Enhanced powers and independence 3. TSO cooperation at EU level 4. Agency for Regulatory Cooperation Parliament is mainly in line with the Commission’s proposal

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Regional cooperation

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Ownership unbundling and the alternative way Most controversial point of the debate Parliament is still studying its implications Preferable to the ISO model But will it guarantee the same conditions as ownership unbundling?

Parliament is open to a negotiated solution

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Harmonisation is NOT centralisation Member States are best suited to identify the problems and find adequate solutions However: Harmonisation of the regulatory and technical framework essential to ensure integration of the EU energy markets

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How the 3rd package should improve effective unbundling and regional cooperation

Alejo Vidal-Quadras Roca

Vice-president of the European Parliament Member of the ITRE Committee Regional Initiatives: Europe’s key to energy market integration Joint Conference by the European Commission and ERGEG Brussels, 27th February 2008

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