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GRI NW and Implementation. David Halldearn Energy Market Insights Limited [email protected] 5 July 2010. Background. NMa identified need to update the Roadmap following adoption of 3 rd package

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Gri nw and implementation

GRI NW and Implementation

David Halldearn

Energy Market Insights Limited

[email protected]

5 July 2010


Background
Background

  • NMa identified need to update the Roadmap following adoption of 3rd package

  • Review identified new role for GRI NW in co-ordinating implementation of 3rd package measures (notably Framework Guideline policies and network codes)

  • Current project is to specify how GRI NW can take implementation work forwards operationally

  • The proposals are for discussion!


Objectives
Objectives

  • Improve the regulatory implementation process and of decision making by ministries on implementation

  • Enhance monitoring and enforcement by NRAs where there are cross border aspects

  • Assist ACER in undertaking its regional co-ordination functions


Principles
Principles

  • GRI NW co-ordinates NRA decisions in the region – it does not take decisions itself

  • Implementation work undertaken by GRI NW must be complementary to the work of ACER

  • The work of GRI NW must take account of possible binding guidelines under the 3rd package on NRA co-operation; and of the possibility of binding decisions following dispute resolution by ACER should NRAs disagree

  • The forward work plan of GRI NW on implementation must take account of the 3 year work plan published by the Commission

  • Co-ordination should enable more efficient use of regulatory resources


Scope of gri nw work on implementation
Scope of GRI NW work on implementation

  • Core co-ordination work:

    • national implementation by NRAs of European requirements

    • monitoring activities required of NRAs where there is a cross border interaction

    • enforcement action by an NRA where there is a cross-border aspect to the case

    • regulatory assessment of the regional TYNDP

  • Possible additional co-ordination work:

    • Interaction between NRAs and member states

    • regulatory supervision of the implementation work by TSOs


Roles and responsibilities
Roles and responsibilities

  • Member states: formal responsibility for member state compliance

  • NRAs: Detailed aspects on implementation (although scope varies) and for monitoring and enforcement

  • TSOs: practical implementation

  • Stakeholders: -are the customers!


Possible governance
Possible Governance

  • 2 options: ‘shallow’ and ‘deep’

  • Each has different attributes and implies a different level of co-ordination of regulatory decisions

  • Shallow model assumes voluntary co-operation as now

  • Deep model assumes formal arrangements exist for co-ordination of regulatory decisions


Shallow model
Shallow model

Advantages

Disadvantages

  • No change

  • No legal barriers

  • No additional formal governance needed

  • Low prospects of delivering regulatory co-ordination on implementation

  • May encourage Agency to propose guidelines to bind NRAs in co-operation

  • Would not provide a sound basis for co-operation between NRAs on cross-border monitoring and enforcement


Deep model
Deep model

Advantages

Disadvantages

  • Potentially sound basis for NRA co-ordination on implementation, monitoring and enforcement

  • Formality could integrate GRI NW as recognised (but not formal) part of wider 3rd package institutional structure

  • Would reinforce shift to compulsory rather than voluntary

  • A formalised arrangement could be difficult to reach agreement on

  • Any arrangements must not be bureaucratic


Governance implications of deep model
Governance implications of deep model

  • RCC remit to be formalised based on enhanced agreement

  • Role of member states to be recognised

  • Operational arrangements to be developed

  • Role of other GRI NW structures to be refined

  • Processes for interaction with ACER to be developed


Next steps
Next Steps

  • Proposals to be revised following RCC discussion

  • Procedural aspects to be developed

  • Discussions to be held with other involved organisations


Thank you
Thank you

David Halldearn

Energy Market Insights Limited

[email protected]

5 July 2010


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