Background

2. Background • Programme Board initial discussion last year at Stockholm • Since then: • Further analysis has been undertaken on impact of 3rd package on RIs • Informal discussions have been held by NMa with key opinion formers, including PB members, key member states, project leaders • European Commission has announced planned Communication in September on their policy on Regional Initiatives

3. Third package – Regional implications • 3rd package fill ‘regulatory gap’ – the lack of cross border regulatory framework • Past voluntary approach of RIs there to be reviewed • Key measures: • Obligations of regional co-operation on member states, regulators (facilitated by ACER), and TSOs • Framework Guidelines, network codes and comitolgy procedure will create binding cross border regulatory framework – the basis for a single European energy market

4. Roles and responsibilities Stakeholders

5. Role of GRI NW • Two potential roles with significant differences:

6. Organisation • Significant, but subtle, differences for each role:

7. Scope of regional decisions • ‘Implementation’ activity will still have scope for regional differences: EU Detail Regional National Scope 7

8. Cross border co-ordination may be necessary for implementation • Scope to interpret high level EU Guidelines and codes could result in problematic national differences persisting • Consultations in neighbouring countries should be co-ordinated to save confusion • The overall approach of implementation – both the process and basic model – should be shared across borders as Guidelines and codes will be aimed at cross border issues

9. GRI NW structures – roles

10. Practical effect on organisation • Decisions on scope of GRI NW in relation to implementation • RCC to consider its role and organisation in relation to cross border implementation • Member states and stakeholders to be closely engaged on implementation issues

11. GRI NW 2010 Work Plan • Clear view that current projects should continue as priority rather than establishing new projects • Main focus on: • Short term capacity and incentives. FG being drafted, but value can be added on implementation/for network codes by advancing thinking on capacity product definition and incentivisation, and secondary markets • Investment – but care is needed here to co-ordinate with EU developments. Value can be added in relation to regulatory co-ordination on investment decisions and feed into tariff Framework Guideline. Key option of addition on open seasons (but already in ERGEG work plan for 2010) • Interesting suggestion of project on capacity bundling at Dutch/German border to be considered • Some (TSOs) prefer no work in GRI NW other than implementation • Implementation work could include: • Regional input to Framework Guidelines and network code drafting • Assisting ACER on regional co-ordination of implementation

12. Conclusions • GRI NW has a central role to play in co-ordinating the implementation of Framework guidelines and network codes • Closer liaison with ministries is needed • Important pro-active work will continue in areas where GRI NW can add real value, based on existing projects for 2010/11 • The nature of GRI NW will change as a binding regulatory framework resulting from the 3rd package is developed • Stakeholder involvement will remain of central importance

13. Thank you!