Post on 04-Feb-2016
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Directorate General for Energy and Transport
Johannes ENZMANNJohannes ENZMANN
AdministratorAdministrator
DG Energy and TransportDG Energy and Transport
European CommissionEuropean Commission
GTE 2nd Annual Conference23 September 2004, Copenhagen
Completing the Internal Energy Market for Gas
Directorate General for Energy and Transport
EU Market share of natural gas
0
5
10
15
20
25
30
35
in % of Gross Inland Consumption
EU15
EU25
EU15 23,3 28,9 32 32,3
EU25 22,8 28,5 31,6 32
2000 2010 2020 2030
Directorate General for Energy and Transport
Implementation – state of play
Transposition until 1st July 2004Obligation of Member States to notify
pursuant to Art 33(1)State of play 1st July 2004:
2 MS have notified, another one has finally transposed the Directive
another 2 MS presumably until end of September14 MS presumably by end of 20045 MS in 2005derogations
Directorate General for Energy and Transport
Key provisions of the 2nd Internal Gas Market Directive
Underlying principle: non-discrimination and transparency;
Legal and functional unbundling of networks (natural monopolies)
Unbundling of accounts of integrated companies;
TPA on the basis of regulated tariffs (ex ante approval)
TPA to gas storage facilities (negotiated or regulated)
Full market opening by 2007; all non-households from July 2004;
Regulatory authorities with certain minimum powers
Directorate General for Energy and Transport
Complementary measure to Directive 2003/55/EC: it aims at setting minimum requirements for conditions for access to the gas transmission networks
Qualitative market opening as important as quantitative market opening
crucial importance of TPA as the principal tool to open the market and introduce competition
Regulation defines certain minimum requirements with respect to a key element of the Directive, i.e. TPA
level playing field and principles of non-discrimination and transparency
Regulation on Access Conditions: objectives
Directorate General for Energy and Transport
Adoption of the proposal by the Commission in December 2003
1st reading of the European Parliament in April 2004
Political agreement of the Council in June 2004
Common Position expected in November 2004
2nd reading of the European Parliament
Final adoption presumably in 1st half of 2005
Regulation on Access Conditions: state of play
Directorate General for Energy and Transport
Regulation on Access Conditions: main topics
Submitted in December 2003, political agreement achieved in June 2004
Topics:TariffsTPA ServicesCapacity allocation and congestion managementTransparency requirementsBalancingSecondary markets
Comitology procedure
Directorate General for Energy and Transport
Security of Supply Directive – Safeguarding SoS in the internal market
Ensuring the well-functioning of the internal market bysafeguarding security of gas supplyadapting to new market environment
This is achieved bydefinition of security of supply policiesdetermination of roles and responsibilities of
market playersdetermination of minimum output standards
Directorate General for Energy and Transport
The EU Gas Regulatory ForumLatest meeting July 2004Discusses complementary measures to the Gas
Directive i.e. how in practice to ensure competition and non-discrimination;
The European Group of RegulatorsAdvisory GroupHeads of national regulatory authoritiesAssist Commission in consolidating the Internal
market for gas and electricity
Regulatory Groups
Directorate General for Energy and Transport
Access to storage
Directive 2003/55/EC: Art 2(9) and 19 Interpreting note on TPA to storage Conclusions of the 7th and 8th Madrid Forum
Need for non-discriminatory and transparent accesss conditions to storage facilities
Guidelines for Good TPA Practice for Storage System Operators (GGPSSO)
Inventory on access conditions stressed the need for GGPSSO covering the issues identified by the Commission and the Regulators, such as Necessary TPA services, capacity allocation and
congestion managment, confidentiality and transparency requirements, tariffs structure, market based mechanisms etc
Directorate General for Energy and Transport
Overview negotiated – regulated TPA
BEB negotiated NAM negotiated
BP negotiated OMV negotiated
CSL regulated RAG negotiated
DONG negotiated EON-RG negotiated
Edison regulated Stogit regulated
Enagas regulated RWE-TG negotiated
Fluxys regulated VNG negotiated
GdF negotiated Wingas negotiated
Directorate General for Energy and Transport
Overview services
Bundled Service UBS Secondary M Interruptible Reverse flow
BEB SBU 10% of I/W EBE, cap&com Dem > avail.
BP SBU cap
CSL SBU EBE any unused ff capacity
DONG SBU different IWS cap&com following neg
Edison cap&com
Enagas SC to book
Fluxys SBUs SBU trading operational ltd, but possible
GdF basic service linked to BS
NAM SBU cap, poss EBE overcome min.
OMV range of SBUs min. capacities commodity flexible service
RAG I=W tailor made not yet
Ruhrgas SBU confirmed confirmed
Stogit cap&com Dem > avail.
RWE/TG cap, creditw. if insuffic. I\W confirmed
VNG WC and SC ratio confirmed additional 10% confirmed
Wingas confirmed following neg confirmed
Directorate General for Energy and Transport
Summary Also the overall picture looks relatively positive with
respect to the range of services offered, there is considerable room for improvement for some operators.
In terms of capacity allocation and congestion management, the prevailing practice might not comply with the requirements of a well functioning competitive market
Transparency requirements need to be clearly defined
Clear rules should ensure non-discrimination Negotiated tariffs: do they reflect the market value of
the service in all cases?
Directorate General for Energy and Transport
ConclusionsOpening of energy markets key aspect
of the Lisbon objectiveProper implementation of 2nd internal
gas market directive indispensable, but must be complemented by measures such as the regulation on access conditions
Sufficient?...… Commission report on progress on
the internal market for energy