Ana Arana Antelo Electricity and Gas Unit Implementing the 3rd Energy package, Commission’s role EUROPEAN COMMISSION “IFIEC Europe Energy Forum” Brussels.

Ana Arana AnteloElectricity and Gas Unit

Implementing the 3rd Energy package, Commission’s role

EUROPEANCOMMISSION

“IFIEC Europe Energy Forum”Brussels 22 September 2009

http://fr.wikipedia.org/wiki/Image:Kraftwerk_Ybbs-Persenbeug.jpg

| 2IFIEC Europe Energy forum 22 September 2009

Outline of the presentation

.Status and content of the third package.What to do in the interim period?.Commission’s role.Conclusions


Chronology of the packages

Package no Action Date

Delors Commission: 1985 to 1994

1 Commission working document May 1988

Commission proposal March 1992

Adoption December 1996

Santer Commission: January 1995 to July 1999

Prodi Commission: September 1999 until November 2004

2 Green paper on security of supply November 2000

Commission proposal March 2001

Adoption June 2003

Barroso Commission: November 2004 to xxxx

3 Energy policy for Europe January 2007

Commission proposal September 2007

Adoption June 2009


3rd package: main measures

. EU Regulatory Agency. Stronger powers for national regulators . Cooperation of network operators (ENTSO). Effective unbundling of transmission networks

. Also» Transparency» Retail market & consumer protection» Third country clause» Level playing field» Closed distribution systems


Adoption and implementation

.3rd package entered into force 3 September 2009.3rd package applies from 3 March 2011» Agency operational» ENTSOs become official bodies» Ownership unbundling by 3 March 2012 at the

latest, certain aspects in 2013


Setting up the Agency

.Budget & Staff: » About 40-50 people» Annual budget around €6-7 million» ACER resources will depend on work and

know-how contributions from NRAs.Seat: » Decision expected under Swedish presidency» Candidates are Romania, Slovakia and

Slovenia.Director: » The vacancy will be published soon


National Regulatory Authorities

. Management» Budget implementation autonomy» Board appointments for 5 to 7 years – renewable max once. Tasks and duties» Energy efficiency and consumer orientation» Recommendations on investment plans» Monitor transparency of wholesale prices» Monitor restrictive contractual practices & contractual

freedom» Ensure enforcement of effective consumer protection » Information on TPA refusal and network expansion» TSOs to submit congestion management rules to NRA» Fix provisional tariffs» Justify and publish decisions. Coordination on a regional level: » Codes and congestion management» Co-operative agreements between NRA’s


TSO co-operation in the third package, tasks

. Annual work programme and annual report. Network codes» Monitoring of implementation of codes. 10-year network development plan and generation adequacy outlook every two years. Summer and winter generation adequacy outlooks. Network operational tools. Co-ordination of research. Recommendations on technical cooperation between Community and third-country TSOs. Regional co-operation


Retail markets and protection of vulnerable customers

.Smart meters» Implementation subject to cost benefit analysis within

3 years» Preparation of timetable for implementation» Interoperability of metering systems .Change of supplier within 3 weeks. Final account closure after 6 weeks.Supply to all customers by any supplier in the EU» Subject to trading, balancing and SoS rules.Define the concept of vulnerable customers.Consumers ’ access consumption data.Single contact point for consumer rights & Energy

Ombudsman


Closed distribution systems (CDS)

. CDS do not constitute a new and separate category of system» within the scope of the Directive, Member States may

design targeted and proportionate rules for Closed DSO. NRAs may exempt Closed DSOs from the requirement that tariffs are approved prior to their entry into force» NRA retains a review function in this case.. a CDS must be located on a geographically confined

industrial, commercial or shared services site. . no households connected (except incidental use in limited circumstances).. additionally either:» integrated operations of the users of the system for

specific technical or safety reasons - it will be for Member States to more precisely define this criterion; OR

» the system distributes electricity primarily to the owner or operator of the system


Interim period

.Electricity TSOs have established ENTSO-E, Gas will follow.ERGEG prepares the work of the Agency

. Framework guidelines and codes. 10-year network development plan.Annual work programmes


Network codes

ENTSO Work Programme Agency

Commission

Preparation of framework guidelines

Framework guidelines

Commission

Commission

Comitology

Legally binding codes

Agency

Preparation of network codes

Draft code

ENTSO Commission Agency

6 m (extensible)

12 m

Opinion 3 m

~ 12 m


Network codes, Article 8 of Electricity regulation

1.network security and reliability rules including rules for technical transmission reserve capacity for operational network security;2.grid connection rules;3.third party access rules;4.data exchange and settlement rules;5.interoperability rules;6.operational procedures in an emergency;7.capacity allocation and congestion management rules; 8.rules for trading related to technical and operational provision of network access services and system balancing;9.transparency rules; 10.balancing rules including network related reserve power rules;11.rules regarding harmonised transmission tariff structures including locational signals and inter-TSO compensation rules;12.energy efficiency regarding electricity networks


Legally binding guidelines Article 18 of Electricity regulation 1.Inter TSO compensation mechanism2.Tariff harmonisation rules3.Congestion management rules4.Safety and operational rules5.Provision of information rules6.Trading of electricity rules7.Investment incentive rules

… and all items on the Article 8 list


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System Operation Framework Guideline

Electricity Regulation EC/714/2009

European Electricity Rules

Agency Regulation EC/713/2009Electricity directive 2009/72/EC

Balancing Framework Guideline

Connection Framework Guideline

Market Information Framework Guideline

Wholesale Market Framework Guideline

European Tariff Framework Guideline

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Commission’s role

. Commission puts up the Agency. Certification of TSOs. Priority setting for work programmes, codes and guidelines. Comitology. Exemptions on new infrastructure


Regional market approach

IPS/UPS

CWE

Nordic

UK/IE

CEE

SWECSE

SEE

Baltic

Wind power


Summarised

. Third package provides mandate to meet technical and market challenges» legally binding network codes and guidelines. Expectations for the Agency and the ENTSOs are high. The package provides new tools to cope with the increasing European Network infrastructure needs» Independent TSOs» 10 year network deelopment plans

Ana Arana Antelo Electricity and Gas Unit Implementing the 3rd Energy package, Commission’s role EUROPEAN COMMISSION “IFIEC Europe Energy Forum” Brussels.

Documents

energy package

energy policy

commission proposalmarch

nras slide

commission proposalseptember

barroso commission

santer commission

prodi commission