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Enhancing Tools for European TSOs to Tackle Energy Challenges

Explore the impact of the Third Package on European energy markets, roles of TSOs, market facilitation, and regulatory requirements to address the energy challenge. Learn about key responsibilities and tools provided to enable a flourishing gas market.

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Enhancing Tools for European TSOs to Tackle Energy Challenges

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  1. Does the Third Package provide the European TSO associations with the tools necessary to find solutions to the European energy challenge ? Nigel Sisman, GTE+ Senior Advisernigel.sisman@gie.eu.com Energinet.dk New Tasks New Tools conference, Copenhagen 12th March 2008

  2. Current state of play • 27 countries • > 40 transmission system operators (TSOs) • Several hubs, some mature, some emergent Third Package – the third attempt to deliver a single European gas market

  3. Consumers Shippers Traders Producers The Third Package Framework Commission • Need • Clear roles and responsibilities • Checks and balances TSO body Agency • Overcome barriers at 3 levels • Legal • Regulatory • Contractual & Industrial

  4. The TSOs role • secure, reliable and efficient operation of the transmission networks which are the backbone of the gas system • provision of the market place for interested stakeholders by bridging the gap between physical and contractual aspects of gas transmission (‘commodity-making principle‘) TSOs cannot ensure a properly functioning market however TSOs can provide the necessary foundation to enable a flourishing market

  5. TSO role • Provide • capacity, • access services, • information • to facilitate the market Robust Responsive Transparent consultation Outputs Network Codes to provide the foundation for the market Capacity Development Statement to inform the market TSOs Third Package Responsibilities • Tasks include, in particular, the adoption of: • an annual work programme • technical and market (network) codes in 11 areas • a 10-year network development plan every two years • annual winter supply outlooks • an annual report • Consultation processes • To establish the annual workprogramme • To consider change proposals • To inform 10 Year Capacity Development Statement

  6. Agency • To enhance regulatory co-ordination • To support and endorse codes • To monitor the implementation of the codes and assist compliance via NRAs Agency support and regulatory co-ordination essential to develop change

  7. Commission role • Directives and regulations • ensuring the policies are implemented • Addressing legal inconsistencies • to enable implementation process • Comitology • where ENTSOG technical and market codes are not implemented

  8. TSOs progress towards formal TSO body • ‘Shadow formal body‘ (GTE+) established by GTE members • 3 Senior Advisers hired • Market consultation on the work programme in the spring • Key deliverables for this year are • Transparency platform • 10-year network development plan • Winter outlook

  9. Conclusions • Third Package a good step • Only minor refinements necessary • TSOs must • establish ENTSOG • develop robust consultation processes • involve all stakeholders • The Agency must • offer opinions on ENTSOG work • make recommendations to implement • deal with regulatory, and assist with legal barriers • Commission must • ensure Directives/Regulations implemented • assist address legal inconsistencies • resort to comitology if appropriate

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