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THE THIRD ENERGY PACKAGE – THE ENERGY COMMUNITY APPROACH

Energy Community Secretariat

20th Forum of the Croatian Energy Associationand

WEC National Committee Zagreb, 18 November 2011

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ON THE COMMUNITY AND ITS TREATYEU energy policy as energy policy of Europe

Status: Oct 2011

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THE COMMUNITY AS A “SUCCESS STORY”

•The Report of the European Commission to the European Parliament

www.energy-community.org/pls/portal/docs/888181.PDF

but

•Improvements needed

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ON THE TREATY IMPLEMENTATION

1. The Acquis as established by the Treaty (2006)

- Electricity and Gas, Environment, Competition, Renewable energy

2. Added by the Ministerial Council:

-Security of Supply (2007); Energy efficiency (2009);

3rd Internal Energy Market Package (October 2011)

3. Under discussion for implementation on mandatory basis:

- inter alia Oil (oil stocks) and statistics; New RES Directive (2009)

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THE COMMUNITY AND THE THIRD PACKAGEPRACTICAL IMPORTANCE

Reasoning for the 3rd Package (EU context) – Improving the market

Practical Reasoning for the attention to 3rd Package (Energy Community context)

- Continuation of the process (follow the EU developments);

- Shortcomings observed

- A stepstone towards market opening – more transparency and cross border cooperation

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THE COMMUNITY AND THE THIRD PACKAGEFORMAL STEPS

CURRENTLYThe Implementation Focus – the second package, but preparatory activities in place

HOWEVERThe Third Package – center of attention in the Energy Community context since its adoption

IN CONCRETE24 September 2010 – Recommendation on the Third Internal Energy Market Package adopted by the Ministerial Council

- 06 October 2011 – Decision on the Third Internal Energy Market Package, adopted by the Ministerial Council

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THE ROLE OF THE DECISIONFOR THE ENERGY COMMUNITY

Indication of the continuity – facing the amendments in time

Recalling the Community objectives in the EU context – results are expected on the ground of the EU acquis

Emphasis on the challenges in an updated legislative dimension – strengthen the regulators on national level, improve the regulatory coordination on regional (international) level, harmonize the role of the TSOs etc. i.e. face the market in real terms

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THE REGULATORSIN THE ENERGY COMMUNITY CONTEXT

The Energy Community Regulatory Board – structure and functions

Harmonizing the approach and independence on national level – major challenges

Promoting the investments – a key need (developed documents); strong cooperation with the other national authorities necessary!

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THE ENERGY COMMUNITY REGULATORSIN THE THIRD PACKAGE CONTEXT

Cooperation with ACER

Harmonization of competences

Fine tune the relations with other national institutions (e.g. competition authorities)

As to conduct effectively the market and promote the investments

Independence, Independence!

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THE THIRD PACKAGE – WHAT IS NEXT IN THE ENERGY COMMUNITY

Support on clarifications – active position by the Contracting Parties demonstrated

Support on implementation (including for the new Members) – focus on active involvement of all national bodies

Monitoring on the implementation process (01.01.2015)

Cooperation with the EU institutions – ACER, ENTSO-E, ENTSO-G

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THE THIRD PACKAGE AND VULNERABILITY

•Energy Community acquis communautaire (Electricity and Gas Directives):

Measures to protect final customers and in particular adequate safeguards for protection of vulnerable customers required; Mechanisms for regulation to avoid any abuse of a dominant position, in particular to the detriment of consumers

•Third legislative package strengthens the right of the customers:

Definition of a concept of vulnerable customers required; Appropriate measures providing social security benefits to ensure the necessary energy supply to vulnerable customers ; One of the objectives of regulatory authorities is to contribute to the protection of vulnerable customers

•Undertaken and planned activities

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ON THE MODERNIZATION OF THE WORK -STEPS TOWARDS THE PACKAGE IMPLEMENTATION

More initiatives from the Contracting Parties

- The Regional Energy Strategy as example

More active Business Community

- the Investment Advisory Panel

- the Dispute Settlement

More active Donors’ Community

- streamlining the support

- link the support with achieving concrete results

Where are the challenges

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INSTEAD OF A CONCLUSION

•For the Energy Community the implementation of the Second Package is still a legally backed up priority,

BUT

•In parallel - Work in the Third Package context continues

AS

•This is objectively justified and practically necessary

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THANK YOU FOR YOUR ATTENTION!

Substantial amount of analytical reports and presentations both for the national and regional perspective are to be found on

www.energy-community.org