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The completion of the internal market and the way ahead: ACER's view


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Dennis Hesseling (ACER) presents at the 1st Vienna Forum on European Energy Law, 2013

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The completion of the internal market and the way ahead: ACER's view

  1. 1. The completion of the internal market and the way ahead – ACER’s view Dennis Hesseling Head of the Gas Department, ACER 8 March 2013 - Vienna Forum - Wien
  2. 2. .Introduction ACER .Infrastructure investment .Framework Guidelines / Network codes Overview
  3. 3. Therefore, ACER .is NOT a European Energy Regulator .… but plays a CENTRAL ROLE in the institutional framework introduced by the 3rd Energy Package The Mission of ACER “The purpose of the Agency shall be to assist the [NRAs] in exercising, at Community level, the regulatory tasks performed in the Member States and, where necessary, to coordinate their action”. Source: Regulation (EC) No 713/2009
  4. 4. Institutional set-up third energy package NRA NRA NRA NRA TSO TSO ISO ITO ENTSO ACER European Commission
  5. 5. - Deadline set by the EU Council in 2011 What does this mean in practice? - EU-wide network codes must be made legally binding through the “comitology” procedure - The TEN-E Regulation must be finalised and the cross-border Projects of Common Interest (PCIs) must be identified and funded - The Regional Initiatives must be strengthened to deliver the IEM region by region The Internal Energy Market (2014)
  6. 6. How are we doing so far? .3rd Package has been transposed and must be implemented fully and effectively into national law .EC must monitor and pursue infringements .EU-wide network codes and market rules must be developed and adopted as soon as possible .National energy market designs need to become more European to achieve market integration .Voluntary regional initiatives and integration projects are key and “pilot” for future network codes .Monitoring is essential to indicate how energy markets operate and to highlight where improvements are needed 6 Source: ACER/CEER Market monitoring report 2011
  7. 7. .Introduction ACER .Infrastructure investment .Framework Guidelines / Network codes
  8. 8. Planning Implementation EU infrastructure investment: planning and implementation TSOs within Member State National TYNDP (binding, annual) TSOs within Region Regional investment plan (non-binding, biennial) ENTSOs Community-wide TYNDP (non-binding, biennial) ACER Opinion on draft NRAs / ACER Assess consistency between the two plans May recommend amending either or both NRAs Monitor implementation If not delivered by TSOs: - Require TSO to execute investment - Organise tender procedure for third party investment ACER Monitors implementation May make recommendations to TSOs and NRAs on implementation “Community aspects”
  9. 9. Energy Infrastructure Package (E+G) Developing trans-European energy networks TYNDP and Projects of Common Interest (PCI) - Based on Cost-Benefit Analysis; PCIs are a subset of the TYNDP Priority Areas “Toolbox” to speed up implementation - Faster and more transparent permitting processes; improved cost allocation; incentives; financial support (if/when required) Investment Needs and Financing Gap Legislative proposal October 2011, aimed adoption mid 2013
  10. 10. .The EC establishes regional coordination groups .Project promoters present projects to the regional groups, which seek Member States’ approval and submit to ACER .ACER submits its opinion on the project lists to the EC .Decisions for adoption are taken by the EC .ENTSOs submit to ACER & EC harmonised CBA methodology .ACER provides opinion on CBA methodology .If project adopted, project promoter submits investment request to relevant NRA(s) and specify cross-border cost allocation .The NRAs involved take joint decision about x—border project and notify to ACER .ACER only intervenes in case dispute between NRAs EIP: who does what
  11. 11. .Introduction ACER .Infrastructure investment .Framework Guidelines / Network codes
  12. 12. 12 EC defines Priority Areas ACER develops Framework Guidelines (FG) and submits them to the Commission ENTSO develops Network Codes (NC) ACER checks compliance of NC with FG ACER recommends NC to EC for adoption EC submits NC to Comitology EC adopts NC which becomes binding Developing Framework Guidelines and Network Codes
  13. 13. NC Gas Framework Guidelines and Network Codes 2011 2012 2013 2014 2015 FG/NC on Capacity Allocation Mechanisms (CAM) FG Commission Guidelines on Congestion Management Procedures FG/NC on Harmonised Transmission Tariff Structures FG/NC on Gas Balancing in Transmission Systems WS CG EV COMITOLOGY COMITOLOGY NC NC EV EV COMITOLOGY COMITOLOGY FG NC EV COMITOLOGY ACER ENTSOG EP - EC EV = Evaluation of Network Codes FG FG/NC on Interoperability Rules FG
  14. 14. Regulatory Approach (3rd Package) • New institutional framework (ACER, ENTSOs) • Framework Guidelines in priority areas defined by the Commission • Network Codes developed by ENTSOs, to be enforced by the EC “Voluntary” Implementation (Regional initiatives) • Pilot projects to be implemented before legally required • Testing early implementation of the rules set up in the Framework Guidelines and Network Codes • Identification of possible issues The Regional Initiatives process complementary to the FGs and NCs process
  15. 15. Gas: Early CAM implementation projects The promotion and facilitation of truly joint (cross-regional) CAM platforms is one of the priorities of the Gas Regional Initiative in 2013 • CAM Implementation Roadmap for early implementation of CAM NC carried out by ENTSOG and ACER, in cooperation with TSOs & NRAs • Main aim to facilitate early implementation of CAM NC by:  Promoting experience sharing and exchange of lessons learned between pilot projects  Identifying good practices and critical issues of EU relevance  Informing adequately all interested stakeholders  Enabling ACER and ENTSOG to monitor the process, ensuring coherence of solutions • Four pilot projects currently part of CAM Roadmap:  PRISMA platform (involving 20 TSOs from 7 countries)  Pilot projects for allocation of bundled capacity between Hungary-Romania, at Lasów IP (Germany-Poland) and in Spain-Portugal interconnection • Voluntary implementation has already started, ahead of mandatory implementation deadline of the CAM NC, expected to be adopted on Q3 2013
  16. 16. Regional Initiatives: Way forward • Stepping up pace towards the goal essential • Despite progress in concrete projects, further integration and convergence within and between the regions needed • Focus on areas which can contribute more to creation of IEM, in particular CAM • Commitment and engagement of all parties (European Commission, ACER, NRAs, Member States, TSOs, other stakeholders) essential • ACER continue closely monitor progress, coordinating and supporting where needed • ACER invites all stakeholders to participate actively in RI and give feedback about projects planned
  17. 17. Thank you for your attention Thank you for your attention Questions and answers