1 / 14

APEX annual conference 2005

European Commission. Regulation of electricity markets in the European Union. APEX annual conference 2005. Lars Hollner European Commission . Directorate General for Energy and Transport. Development in time.

cyrus-harvey
Download Presentation

APEX annual conference 2005

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. European Commission • Regulation of electricity markets • in the European Union APEX annual conference 2005 Lars Hollner European Commission Directorate General for Energy and Transport

  2. Development in time • 1996 and 1998: 1st Internal Market Directives on gas (98/30/EC) and electricity (96/92/EC) • Directives effective in Member States as from 1998 and 2000 • Deficits and shortcomings resulted in 2nd package Directive 2003/54/EC and 2003/55/EC adopted in November 2003 • Effective as from 1 July 2004 • However, lack of timely transposition in national law • CommissionProgress Report this month

  3. The European approach • Creation of one internal market for energy rather than 25 liberalised, but separated national markets • Principle of subsidiarity • Approach based on Directives, that means: Mandatory with respect to objectives, but free with respect to the means to achieve the objectives

  4. Summary of New Directives • Full market opening timetable • Legal and functional unbundling of networks • Regulated Access to Networks with published tariffs and methodology approved in advance by regulators • Deadline July 2004 for most provisions • Deadline July 2007 for full market opening and DSO unbundling

  5. Role of regulators • Regulator is in charge of • network access tariff methodology: Art. 23(2)(a) • balancing methodology: Art 23(2)(b) • cross border capacity allocation: Regulation Art 9 • regulators must have access to information (e.g. accounts of system operators) • regulators must have some form of sanction against companies to ensure compliance

  6. Separation of network operators • Unbundling • Legal unbundling of TSO from July 2004, • Additional measures to ensure independent acting • Management may not participate in other activities of the integrated undertaking • No conflict of interest • Compliance programme • Legal unbundling of DSOnot later than July 2007, but management unbundling applies from 2004 onwards

  7. Market Opening • Market Opening • deadline for non-households July 2004 • deadline for all customers July 2007 • Generation market open since 1999 (first Directive). Anybody can build generation capacity; e.g. large users, CHP producers.

  8. Role of European Commission • Propose EU legislation, for adoption by Council and Parliament • Monitor and enforce compliance with EU rules • Adopt implementing measures in a limited number of issues related to cross-border transmission – regulatory decisions at EU level. • Apply EU competition rules to the energy sector

  9. Role of Member States • Implement effectively EU framework rules at the national basis • Take all necessary measures to make the market work in practice • Ensure that regulatory authorities have the necessary powers and means (budget, staff) to effectively play their role

  10. Role of regulators • Co-operation of national regulators important – national regulatory decisions impact on EU market • Commission set up advisory group of energy regulators, to promote co-operation and encourage harmonised approaches to regulation

  11. Role of power exchanges • Number of power exchanges has increased over time. • At the moment 11 power exchanges exist in the EU electricity market • Liquidity in most power exchanges is still limited but increasing • Power exchanges play an important role in ensuring transparency in the market and facilitating integration of national markets into regional markets • Need to re-enforce oversight on power exchanges to exclude anti-competitive practices?

  12. The EU electricity market – remaing deficits • Late transposition of new directives – not yet fully effective • Lack of integration of national markets – no price convergence, largely due to insufficient infrastructure • Market structure: dominant positions of incumbents in many national markets

  13. The EU electricity market – remaing deficits • Effectiveness of regulators appears to differ between Member States • Unbundling of network business not yet satisfactory in practice, despite a growing trend towards ownership separation at TSO level • Customers response still underdeveloped

  14. Summary • EU Energy Law is reaching a state of maturity after a long period of development • Main measures are in place for a competitive sector but they need to be effectively implemented at national level • Further integration of national markets is key – power exchanges play an important in this respect

More Related