Transcript No Slide Title

European Commission
DG Energy and Transport
APEx conference
Main issues in the new EU Directive
2003/54 and EU Regulation 1228/2003
Leipzig 11.10.2004
Cristobal Burgos Alonso
Directorate for Conventional energies
[email protected]
Directorate General for Energy and Transport
Summary

Path to liberalisation

Electricity directive

Regulation on cross-border trade of
electricity

Market design
Directorate General for Energy and Transport
Path to liberalisation








Single Market Treaty 1985
White Paper on Energy Policy 1995
Electricity (1996) and Gas (1998)
Directives
Lisbon summit 2000
Amendment proposal 2001
Political agreement at Council 2002
Package adopted June 2003
Implementation by 1 July 2004
Directorate General for Energy and Transport
The package

Directive 2003/54 – electricity

Directive 2003/55 – gas

Regulation 1228/03 – electricity

Most provisions effective from July
2004
Directorate General for Energy and Transport
Directive 2003/54/EC

Opening to all non-household
customers July 2004

Full market opening July 2007

Legal unbundling of transmission by
July 2004, distribution by July 2007

Regulated Third Party Access

Universal service obligation

Duty to monitor security of supply
Directorate General for Energy and Transport
Regulation 2003/1228/EC


Basic principles for:

transmission charges (entry\exit)

congestion management (market based and
non-discriminatory)

inter TSO compensation (actual flows,
standard costing method)
Comitology procedure to adopt
detailed guidelines
Directorate General for Energy and Transport
Fundamental issues




Cross border exchanges
Interconnection and market
concentration
Security of supply and volatile
prices
Need to deliver environmental
objectives
Directorate General for Energy and Transport
Regional energy markets in the EU
Moderately
concentrated
Highly
concentrated
congestion
Directorate General for Energy and Transport
Very highly
concentrated
Status of congestion management
Directorate General for Energy and Transport
Source: ETSO
Status of congestion management in
Europe
On 25 most congested interconnectors:

12 interconnectors are managed with marketbased methods


13 with non-market based methods
14 interconnectors have a joint method agreed
between the TSOs/regulators concerned

In 11 cases:

50%-50% split of the capacity or

capacity has to be obtained from both TSOs or

allocation is unilateral
Directorate General for Energy and Transport
Progress in Liberalisation
Implementation
Level of development of
competition
Electricity
Gas
not functioning
GR, EE, LV
all the new MS,
FI, PT, GR
initial steps only
BE(f)[1], LU, LT, DE, LU, SE, BE(f)
PT, PL, CZ, SI,
SK
some progress
ES, BE(n), IR, IT, AT, BE(n), FR, IT
FR, HU, RO
well developed
DK, AT, DE, NL
NL, IR, DK, ES
complete
UK, SE, FI, NO,
UK
[1] BE(f) – francophone Belgium (Brussels and Wallonia), BE(n) = Flanders
Directorate General for Energy and Transport
Infrastructure package

Second communication on
European infrastructure

Directive on security of electricity
supply

Directive on energy services

Revision of the Trans-European
Energy Networks Guidelines to
include accession countries

Regulation on access to gas
networks
Directorate General for Energy and Transport
Conclusions and Way Forward

EU has created the world biggest
electricity market

Implementation of the legal
framework and the practical
application of the rules are not yet
completed

In 2005 EU will produce a report on
the functioning of the internal market
for electricity and gas

After that it will be assessed what
further measures are needed
Directorate General for Energy and Transport
Thanks for your attention
Please
visit our website
http://europa.eu.int/comm/energy/electricity/index_en.htm
Directorate General for Energy and Transport