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ACER & CEER (regulation 713/2009)


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The third package of energy liberalization established, inter alia, the creation of ACER, the Agen-cy for Cooperation of Energy Regulators. ACER works in close relationship with National Regula-tory Authorities (NRAs), on the one hand, and the Council of European Energy Regulators (CEER), on the other hand. CEER is the voluntary association of European NRAs. The webinar will review extensively the structure of regulatory design that stems form the third package and in particular form the directive 713/2009.

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ACER & CEER (regulation 713/2009)

  1. 1. Regulation 713/2009; ACER / CEER Fulvio Fontini Department of Economics and Management University of Padua, Italy and Co-chair ESS TF, ACER/CEER Ljubljana and Bruxelles
  2. 2. Content of the presentation: 1. The multilevel European governance of electricity and gas; 3. Role, functioning, tasks and challenges of CEER; 2. Directive 713/2009. Role, functioning, tasks and challenges of ACER;
  3. 3. 4. Relationship between CEER, ACER and the other bodies at the various level of relationship and governance; 5. Future challenges, introduction to the Energy Union. What’s next?
  4. 4. The Third Energy Package has defined and attributed power and competences to new and re-shaped existing European bodies. Some have been directly foreseen in the T.E.P: 1) The multilevel European Governance of electricity and gas
  5. 5. ENTSO: European Network of Transmission System Operator. One for Electricity and one for Gas; ACER: Agency for the Cooperation of Energy Regulators, whose role, functioning, responsibilities and power have been laid down in Directive 713/2009; 1) The multilevel European Governance of electricity and gas
  6. 6. However, as an indirect consequence of entry into force of the T.E.P. and the reshaping of competences and bodies, some other organization and bodies have emerged or, if existing, their role has been evolving: CEER: the Council of European Energy Regulators; 1) The multilevel European Governance of electricity and gas
  7. 7. European Fora:  Electricity Regulatory Forum (Florence Forum);  Gas Regulatory Forum (Madrid Forum);  Citizens' Energy Forum (London Forum); 1) The multilevel European Governance of electricity and gas
  8. 8.  Electricity and Gas Regional initiatives;  Pentalateral Energy Forum; Other bodies involved or interacting with the T.E.P. institutions: Energy Community; Mediterranean Energy Regulators (MEDREG); International Confederation of Energy Regulators (ICER); Energy Regulators Regional Association (ERRA). 1) The multilevel European Governance of electricity and gas
  9. 9. ACER. Organization: • The Director: manages and represents ACER; • The Board of Regulators, responsible for the regulatory policy of the Agency; • The Administrative Board, responsible for the administrative policy of the Agency • The Board of Appeal, treats appeals against ACER. 2) Directive 713/2009. ACER
  10. 10. The Director of ACER: Manages and represents the Agency: prepares the work for the Administrative Board; adopts opinions, recommendations and decisions (upon receiveing favorable opinions by the Board of regulators); drafts the annual workprogram of ACER and implement it (with guidance of Board of Regulators) Actual Director (reappointed): Alberto Pototschnig 2) Directive 713/2009. ACER
  11. 11. The Board of Regulators: Is composed of representatives of NRAs (one each) + one non-voting repr. of EC. Decides on regulatory policy of ACER. Issue opinions to the Director that the director shall follow (and provides guidance to the Director). Approves the Work Programme of the Agency (which is adopted by the Administrative Board). Select the Director (on a list prepared by the EC, who is then appointed by the AB). 2) Directive 713/2009. ACER
  12. 12. The Administrative Board Composed of nine Members. Is in charge of ACER Administration (main appointments of the Agency, exercise budgetary power). Adopts the Annual Work Programme (upon approval by the BoR). Appoints the Director (upon a favourable opinion by the BoR). 2) Directive 713/2009. ACER
  13. 13. The Board of Appeal Composed of 6 members (+ 6 alternates) Is part of the Agency but is independent form its administrative and regulatory structures. Decides on appeal lodged against ACER decisions. Decisions of BoA can be appealed before the Court of Justice. 2) Directive 713/2009. ACER
  14. 14. Acer is also composed of: • Staff (agents and SNE, organized in 5 Departments); • Working groups (together with NRAs); • Expert groups. 2) Directive 713/2009. ACER
  15. 15. ACER mandate (Dir. 713/2009): 2) Directive 713/2009. ACER  Drafting Framework Guidelines and issue opinions and recommendations on Network Codes;  Issuing opinions on other ENTSO E/G document/plans (the EU wide T.Y.N.D.P. and national N.D.P.);
  16. 16. ACER mandate (Dir. 713/2009): 2) Directive 713/2009. ACER  Issuing opinions and recommendations upon request by Member States, NRAs, the European Parliament, the Council and the European Commission (or on the Agency’s own initiative, whenever appropriate for ensuring the proper functioning of the Internal Energy)
  17. 17.  Deciding on cross-border issues if national regulators cannot agree or ask ACER to intervene. 2) Directive 713/2009. ACER  Monitor the functioning of internal electricity and gas markets, including network access for electricity produced from Renewable Energy Sources, retail prices and respect of consumer rights. Issue every year a report (“IEM monitoring”).
  18. 18. 2) Beyond Directive 713/2009. New ACER’s competences Subsequent legislation has empowered ACER of two other relevant competences:  Monitoring energy market integrity and transparency: Regulation 1227/2011/EU on wholesale energy market integrity and transparency (REMIT);
  19. 19. What is REMIT: 2) Beyond Directive 713/2009. New ACER’s competences
  20. 20.  Competences attributed/related to the European Plan on Transmission Infrastructures (and the Projects of Common Interests): Regulation 347/2013/EU on Guidelines for trans-European energy infrastructure (TEN-E regulation). 2) Beyond Directive 713/2009. New ACER’s competences
  21. 21. • Opinion on ENTSOs’ updated methodologies for cost-benefit analysis on PCIs; • Report on national methodologies and criteria used to evaluate investments in electricity and gas infrastructure projects; • Annual report on progress in PCI implementation; • Decisions on Cross-Border Cost Allocation Decisions; 2) Beyond Directive 713/2009. New ACER’s competences
  22. 22. Plus other relevant competences, foreseen in other documents – acts etc., leading (perhaps) to future legislation:  “Energy Regulation: A Bridge to 2025” conclusion paper: RES challenges + DSM.  Towards an “Energy Union” (retail + RES). 2) Beyond Directive 713/2009. New ACER’s competences
  23. 23. 2) ACER work Acer work done so far (summary): • Completed 8 FG; • Recommended for adoption 11 (out of 14 proposed) NC; • (Started) launching REMIT monitoring; • Issued opinions related to the “Infrastructure challenge”; • Issued 2 individual decisions on the (cross-border cost allocation) of the Gas Interconnector Poland- Lithuania and the E-PCI PL/LT.
  24. 24. 2) ACER work FutureACERActivity (fromWP2016)
  25. 25. The Council of European Energy Regulators: 3) Role and functioning of CEER. • Has partially inherited the “tradition” (if not the mandate) from ERGEG: it is a voluntary advisory council set up by NRAs to exchange opinion, share best practises, support NRAs, interact with other international (EU and non EU) bodies.
  26. 26. 3) Role and functioning of CEER. Source: CEER
  27. 27. 3) Role and functioning of CEER. General Assembly: takes any decision reserved to the General Assembly by law or the statutes of the association, such as: • approving position papers and official documents; • admitting and excluding Members; • establishing the internal rules of the association; • amending the statutes. Presidency and Board (the President + five Vice Presidents): manages the CEER and represents the association externally.
  28. 28. 3) Role and functioning of CEER. Working groups (supported by Task Forces). Made of members and observers, discuss the topics at a technical level, draft and present to the board papers and fact sheet, draft consultations, etc. The first four WG are “mirrored” by ACER WG (advising ACER’s Director).
  29. 29. CEER is different from (and complimentary to) ACER: • it does not issue binding regulation; • it focuses on aspects relevant for NRAs but that are outside the explicit remit of ACER (eg. RES, Security of Supply); • it works is strict cooperation with ACER (e.g. the target models) • It participates to the several fora of cooperation with EU bodies: London Forum , Madrid Forum, Florence Forum. 3) Role and functioning of CEER.
  30. 30.  Florence, Madrid and London Fora: Set by European Commission (before the T.E.P.), involve NRAs, Member State Governments, the European Commission, TSOs, and specific stakeholders. Are tools aimed at helping stakeholders interactions on: • actual status of the I.E.M. • future visions. 4) ACER, CEER and various Fora.
  31. 31. Florence Forum (meets twice per year). Stakeholders involved: Power Exchanges, TSOs, Consumers and Industry Associations + institutional ones. Focuses on I.E.M. implementation and future challenges (Security of Supply, RES integration). 4) ACER, CEER and various Fora.
  32. 32. Madrid Forum (meets twice per year). Traditional aim: first discussion platform to set up a European market for gas. Current agenda is on various aspects of cross-border gas exchanges and on future evolution of Regulation (on SoS). 4) ACER, CEER and various Fora.
  33. 33. London Forum (meets once per year). Aim: creating competitive, energy-efficient and fair retail markets for consumers. Working Groups established, focusing on: • vulnerable consumers; • price transparency; • consumers as energy market agents. 4) ACER, CEER and various Fora.
  34. 34. • Regional Initiatives: launched by the European Regulatory Group for Electricity and Gas (ERGEG) in 2006, aiming at bringing together stakeholders to foster integration at regional level. • There are 7 RI in electricity and 3 in gas. 4) ACER, CEER and various Fora.
  35. 35.  Pentalateral Energy Forum. Created in 2005 by Energy Ministers from Benelux, Germany and France in order to promote collaboration on cross-border exchange of electricity. Topics (slowly) moving towards a full energy integration (e.g. towards a common Generation Adequacy Assessment). 4) ACER, CEER and various Fora.
  36. 36. From the Internal Energy Market target (EU Council Conclusions – 4 February 2011 “The internal market should be completed by 2014 …”)  to the Energy Union (EU Council Conclusions – 19 March 2015 “The EU is committed to building an Energy Union’… with “a fully integrated European energy market”). 5) What’s next? Energy Union
  37. 37. Reasons: • Some duties and obligations are changing (e.g. from NC drafting and adoption to NC implementation and adaptation/evolution). • Some relevant pieces of legislation still at national level (e.g. on Security of Supply) 5) What’s next? Energy Union
  38. 38. • European infrastructural challenge becoming more and more important (from technical regulation to common development plan). However, decisions on new investments (and more in general contractual power with suppliers, e.g. in gas) is still mostly a National issue. 5) What’s next? Energy Union
  39. 39. The proposal of the European Commission: the Energy Union. 5 pillars: • Energy security and solidarity • A fully integrated European energy market • Energy Efficiency as a tool to limit energy demand • Economy decarbonization • Research, innovation and competitiveness 5) What’s next? Energy Union
  40. 40. In concrete:  Revision of regulation on Gas Security of Supply. • Revision of Decision 994/2012/EU on Gas; provision of standard European contractual clauses; information release on gas contracts relevant for EU EU energy security. 5) What’s next? Energy Union
  41. 41. • Options for (voluntary) collective purchases of gas. European strategy on storage and LNG. • Ban of regulated retail prices (both E&G). 5) What’s next? Energy Union
  42. 42.  Revision of Electricity Security of Supply. • EC sets the admissible level of load shed at European level, taking into account all sources (including RES), interconnections and DSR. There will be limits to (and perhaps a blueprint for an European) National CRM. 5) What’s next? Energy Union
  43. 43.  Infringement procedures on Unbundling and NRAs effective independence.  Extension of ACER competences beyond cross border competences and based on its own initiative.  More institutional role for Regional Initiatives.  New round of Project of Common Interests. 5) What’s next? Energy Union
  44. 44. End of Presentation. Thank You! E-mail: