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Achieving the Internal Gas Market The view of gas suppliers

Achieving the Internal Gas Market The view of gas suppliers. Simon Lewis Eurogas President. GTE 2 nd Annual Conference 24 September 2004. Eurogas: objectives.

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Achieving the Internal Gas Market The view of gas suppliers

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  1. Achieving the Internal Gas Market The view of gas suppliers Simon Lewis Eurogas President GTE 2nd Annual Conference 24 September 2004

  2. Eurogas: objectives • To promote the interests of companies, federations and associations involved in the supply, trading and distribution of natural gas and related activities such as storage and LNG • To promote the smooth functioning of the internal gas market • To promote the development of natural gas in Europe, improve knowledge and take a stance on issues of common interest to the European natural gas industry. Source – based on Eurogas statutes

  3. Eurogas: reform • New membership structure and statutes • Membership open to both companies and federations • Eurogas now has members from 21 countries, including 4 New Member States

  4. Eurogas: membership

  5. Listening to the needs of gas suppliers as network users (1) • Gas suppliers have to work hard to meet customers’ expectations • Customers’ right to switch drives suppliers to offer excellent service at competitive prices • Gas suppliers are the main customers of TSOs • But, gas suppliers do not usually have a choice of TSO

  6. Listening to the needs of gas suppliers as network users (2) • Therefore, independent regulatory authorities are needed as a guarantee of service • If network operators focus on meeting the needs of their customers (users)… • …there will be less need for regulatory intervention.

  7. Achieving the Internal Gas Market – how can TSOs contribute • Full implementation of the 2nd Guidelines for Good Practice, in particular • Providing users with information • Facilitating secondary trading • Ensuring interoperability • Gas hub development • Maintaining and developing the system

  8. Achieving the Internal Gas Market – the role of the Commission The Commission has a key role to play by ensuring: • Effective implementation of the 2003 Gas Directive • Full industry consultation on all initiatives which could impact on the gas market • Commission initiatives support and remove barriers to fully competitive markets

  9. Achieving the Internal Gas Market – the role of ERGEG • Regulation must be appropriate and efficient • With 25 Member States, sufficient harmonisation is needed to remove barriers to internal and cross-border trade

  10. Achieving the Internal Gas Market – how Eurogas is playing its part 1990s • some concerns about gas-to-gas competition 2004 • support for a fully competitive internal market • active in participation in Madrid Forum to encourage solutions that facilitate effective gas supply markets

  11. Possible areas for cooperation GTE and Eurogas could work together and with other associations and share best practice in some areas: • Storage operation • Promoting environmental and economic benefits of gas • Communication of gas safety information e.g. to the general public • Promoting a healthy business environment

  12. Summary and Conclusions • Eurogas and GTE have changed • Completing the internal gas market is a shared objective • Our challenge is to make the market work

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