Insights from Liberalisation: The GTE Autumn Conference Report - Paris, October 23, 2003
This report highlights key takeaways from the GTE Autumn Conference held on October 23, 2003, in Paris, led by Reinhard Mitschek of OMV Ergas GmbH. The discussion centered around the implications of liberalisation on regulated Transmission System Operators (TSOs), addressing the lack of harmonisation within the Internal Market, cost efficiency, price dynamics, and the evolving market structures. Additionally, the Gas Release Program of 2003 was reviewed, showcasing auction processes and buyer participation, essential for fostering market competition and transparency.
Insights from Liberalisation: The GTE Autumn Conference Report - Paris, October 23, 2003
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Presentation Transcript
Experience with Liberalisation • GTE Autumn Conference • October 23rd, 2003 in Paris • Reinhard MITSCHEK • OMV Erdgas GmbH • Transmission and Storage • Head of Division
Experience with Liberalisation • Experience with consequences of liberalisation for the regulated TSO • SOS one of the main topics within the Internal Market • Lack of harmonisation slows down the effect of liberalisation
Experience with Liberalisation • Major aspects of Liberalisation • Different levels of liberalisation combined with different degreesof regulation in MS within the ‘Internal Market’ • Full market opening in Austria provide the possibilities for all customers to change easily the supplier • Suppliers anticipated competition situation price decline in Austriaalready before implementation of Gas Act • Cost efficiency and price declines are taxed away • Emergence of Traders’ alliances • Long term contracts necessary for SOS • No decoupling of gas prices from prices of oil products
Experience with Liberalisation • Impacts of Regulation • Unbundling means separation cost • Costs of bureaucracy: Regulatory Authority, AGCS, AGGM, etc. • Higher transparency • Pressure on transportation tariffs • Reluctance concerning investments / reinvestments • Increased complexity of gas stream control and monitoring
Experience with Liberalisation • Implications on TSOs’ • More players / more contracts / higher number of transactions • Emergence of Hub activities • Chains of customers -> challenge to track • Short term contracts -> accepted by the market • Interruptible contracts -> not accepted by the market up to now • Harmonisation necessity
Experience with Liberalisation • Gas Release Program 2003 • Gas Release Program executed by CEGH in the name of EconGas • Auction took place in July 2003 • Delivery Period is October 2003 – September 2004 • 25 lots per 10 Mio m³ and 1150 m³/h – Delivery Period • 22 registered companies from six European countries • Ascending clock auction with 22 rounds • 8 successful bidders/buyers with a maximum number of 7 lots
