V SIMPOSIO EMPRESARIAL INTERNACIONAL FUNSEAM: LOS RETOS DEL SECTOR ENERGÉTICO CLAUSURA Presentación D. Antonio Brufau, Presidente de Repsol Conferencia de clausura La regulación en la consecución de los Retos Energéticos: el papel de ACER: D. Alberto Pototschnig, Director de ACER

1. La regulación en la consecución de los
Retos Energéticos: el papel de ACER
Alberto Pototschnig
Director
Simposio Empresarial Internacional FUNSEAM
“Retos para el Sector Energético”
Barcelona, 6 Febrero 2017

2. 2
The Long-Term EU Energy Policy Goals
Efficiency
Sustainability
Security of
Supply

3. “The purpose of the Agency is to assist the NRAs in
exercising, at Union level, the regulatory tasks
performed in the Member States and, where
necessary, to coordinate their action”
Therefore, ACER is NOT a European Energy Regulator
but an EU body responsible for promoting regulatory
cooperation and for coordinating NRAs’ activities in the EU
… which plays a CENTRAL ROLE in the new institutional
framework introduced by the Third Package
… with a WIDENING MISSION
ACER Mission
3

4. ACER – an Expanding Role
Third Energy Package
Directives 2009/72/EC and 2009/73/EC
Regulations (EC) No 713/2009, No 714/2009 and No 715/2009
ACER
Regulation No 1227/2011 on Wholesale Energy
Market Integrity and Transparency (REMIT)
Regulation No 347/2013 on guidelines for trans-
European energy infrastructure
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5. Types of acts which ACER can adopt
Opinions and
Recommendations
TSOs/ENTSOs
NRAs
European
Parliament
EU Council
European
Commission
Individual decisions in specific cases
(residual power)
ACER’s current mandate (1)
5

6. Opinions on Infrastructure Planning
Ten-Year Network Development Plans
Lists of Projects of Common Interest (PCIs)
NRA Support and Coordination
Decisions on Terms and Conditions for Access
to/Operational Security of Cross-border
Infrastructure, Exemptions
and Cross-border Cost Allocation
Framework Guidelines for Network Codes
ACER
Market Monitoring
Access (incl. RES), Retail Prices and Consumers’
Rights
Wholesale Trading (REMIT)
ACER’s current mandate (2)
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7. In the EU Internal Electricity Market, a large share of the
physical interconnection capacity is not used for trading
Share of the aggregated thermal capacity of interconnectors made available for
trading – 2015 (%)
Source: Vulcanus, ENTSO-E YS&AR (2014), EW Template (2016), Nord Pool Spot, and ACER calculations.
Note: HVDC refers to high voltage direct current and HVAC refers to high voltage alternating current.
HVDC - 84%
HVAC - 28%
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8. CSMs
HLP3: the costs of remedial actions should be
shared based on the ‘polluter-pays principle’
where the unscheduled flows over the overloaded
network elements should be identified as
‘polluters’ and they should contribute to the costs
in proportion to their contribution to the overload
HLP1: limitations on internal network elements
should not be considered in the CCMs
Recommendation No 02/2016 of 11 November 2016 on High-
Level Principles (HLP) for:
.the common capacity calculation methodologies (CCMs)
.the redispatching and countertrading cost sharing
methodologies (CSMs)
CCMs
HLP2: the capacity of the cross-zonal network
elements considered in the CCMs should not be
reduced in order to accommodate loop flows
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9. 9
ACER’s Opinions, Recommendations and
Decisions (2011 – 2016)
Opinions 96
Recommendations 26
Decisions 24
- of which: Framework Guidelines 8
REMIT implementation 13
Investment requests/CBCA 2
“all NRA” Dec. referred to ACER 1

10. The European Energy Union
Energy
Union
Energy
security,
solidarity and
trust
A fully-
integrated
Internal
Energy
Market
Energy
efficiency/
moderation of
energy
demand
Decarboni-
sation of the
economy
Research and
Innovation
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11. “EU-wide regulation of the single market should be
strengthened, through a significant reinforcement of
the powers and independence of ACER to carry out
regulatory functions at the European level in order to
enable it to effectively oversee the development of the
internal energy market and the related market rules as
well as to deal with all cross-border issues necessary to
create a seamless internal market.”
Communication from the Commission, A Framework Strategy for a Resilient Energy
Union with a Forward-Looking Climate Change Policy, COM(2015) 80 final,
25.2.2015, page 9
11
The Energy Union Strategy and ACER

12. “ACER acts primarily through recommendations and
opinions and has very limited decision-making rights. In line
with the increased cooperation of system operators, the
powers and independence of ACER may need to be
reinforced so that it is able to carry out regulatory
functions at European level where needed. ACER
could then arbitrate in regional and EU level disputes.
The reinforcement of the powers of ACER could include
giving the agency the power to adopt directly applicable
and binding decisions on EU-level initiatives and
cross-border issues and introduction of enforcement
powers to ensure compliance with such decisions.”
Communication from the Commission launching the public consultation process on a
new energy market design, COM(2015) 340 final, 15.7.2015, par. 3.4
12
The New Energy Market Design and ACER

13. 13
Implementing the Energy Union Strategy:
the “Clean Energy for All Europeans” proposal
Internal Energy
Market Measures
Efficiency Sustainability
Security of
Supply
Efficient use of
cross-border
interconnectors
Promoting
best use of
resources
Reducing
capacity
requirements
Efficient
infrastructure
development
Promoting
best use of
resources
Supporting
RES
penetration
Diversification
of routes and
sources
EU Resource
Adequacy
Assessment
Cross-border
adequacy
support
Identifying
SoS threats
Risk Preparedness
Identifying
responses to
SoS crises
Enhanced market
design promoting
flexibility
Promoting
wider market
participation
Supporting
variable RES
penetration
Reducing
capacity
requirements
Demand response
Providing
market-based
peak shaving
Supporting
variable RES
penetration
Reducing
capacity
requirements

14. ACER – an Expanding Role
ACER
Regulation No 1227/2011 on Wholesale Energy
Market Integrity and Transparency (REMIT)
Regulation No 347/2013 on guidelines for trans-
European energy infrastructure
14
“Clean Energy for All Europeans” Package
Third Energy Package
Directives 2009/72/EC and 2009/73/EC
Regulations (EC) No 713/2009, No 714/2009 and No 715/2009

15. Sept 2014: Possible areas for reinforcement
of ACER’s powers (“Bridge to 2025”)
Oversight of
ENTSOs and
other Bodies
- Increasingly important role of ENTSOs
- ACER to have effective oversight of the
ENTSOs in respect of their EU-wide activities
- Similar oversight of other bodies with critical
or monopoly IEM functions
Stronger NRAs
Coordination
- ACER to replace “all NRAs” in taking CACM
3rd level decisions
Monitoring
of Markets
- ACER to be given the powers to require, and
not only request, from all EU energy-sector
entities the information which it needs to
fulfil its monitoring mission
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16. The proposed new tasks for ACER at a glance
16
.Directly reviewing and finalising Network Code proposals for
submission to the Commission
.Directly deciding on terms and conditions or methodologies for
Network Code implementation (current “all NRA” decision)
.Deciding on the methodology and assumptions for the bidding-zone
review
.Defining methodologies for a coordinated European Adequacy
Assessment
.Defining technical parameters for the cross-border participation in
capacity mechanisms
.Coordinating national actions related to risk preparedness
.Overseeing Regional Operation Centres
.Supporting the creation of a EU DSO Entity
.Possibility of issuing recommendation to NRAs and market players,
on its own initiative

17. Network Codes
NC
Development
- ACER to revise the NC proposal and submit
it directly to the Commission
- ACER to propose amendments of the NC
NC
Implemen-
tation
- ACER to replace “all NRAs” in approving
terms and conditions or methodologies for
the implementation of Network Codes and
Guidelines
Bidding-zone
Review
Process
- ACER to approve (or request amendments
of) the methodology and assumptions that
will be used in the bidding zone review
process
17

18. Regional Cooperation and Coordination
NRAs
- ACER to promote cooperation between NRAs
at regional and EU level to ensure
interoperability, communication and
monitoring of regional performance in those
areas which are still not harmonised at EU
level
Regional
Operational
Centres
(ROCs)
- ACER, in close cooperation with NRAs and
ENTSO-E, to monitor and analyse the
performance of ROCs, and to:
- decide on the configuration of system
operation regions
- request information from ROCs
- issue opinions and recommendations to
the Institutions
- issue opinions and recommendations to
the regional groups of NRAs and to ROCs
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19. NEMOs and the EU DSO Entity
NEMOs
- Beyond monitoring the NEMOs in
establishing their functions, ACER to:
- issue recommendations to the
Commission
- request information from NEMOs where
appropriate
EU DSO
Entity
- ACER to provide administrative support to
the DSOs in developing the draft statutes,
the list of registered members and other
rules for the EU DSO Entity to be established
- ACER to provide an opinion on those drafts
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20. Generation Adequacy and Risk Preparedness
Generation
Adequacy
- ACER to approve and, where necessary,
amend:
- the proposals for methodologies and
calculations related to the European
resource adequacy assessment
- the proposals for technical specifications
for cross-border participation in capacity
mechanisms
20
Risk
Preparedness
- ACER to approve and, where necessary,
amend the methodologies for:
- identifying electricity crisis scenarios at a
regional level
- short-term adequacy assessments

21. Electricity and Gas Sector Monitoring
Wider
Monitoring
Remit
- ACER to monitor not only:
- retail prices of electricity and natural gas
- compliance with the consumer rights
- access to the networks, including access
of electricity produced from RES
but also:
- potential barriers to cross-border trade
- state interventions preventing prices
from reflecting actual scarcity
- the performance of the Member State in
the area of the electricity security of
supply, based on the results of the
European resource adequacy assessment
- exceptional compensation payments
between aggregators and balancing
responsible parties
HOWEVER, NO POWERS TO REQUIRE
INFORMATION FOR MONITORING PURPOSES
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22. Thank you for
your
attention
Thank you
for your attention