Directorate General for Energy and Transport European Commission Directorate General for Energy and Transport Progress in the Electricity and Gas Single.

Directorate General for Energy and Transport

European Commission


Progress in the Electricity and Gas Single Market2nd benchmarking report

Nathalie Vande VeldeElectricity and Gas [email protected]


Objectives of benchmarking exercise

• Measure effectiveness of market opening

• Highlight both progress and problems

• Embarrass Member States where necessary

• Support Community Objectives



Timetable for benchmarking


• Oct 2002: initial report for Energy Council

• Dec 2002: draft report on Candidate Countries

• March 2003: final consolidated report

• May 2003: beginning of process for 3rd report



Member States


Electricity market Member States’ current plans (post 25.11.02)


20% 40% 60% 80% 100%

AustriaBelgium

DenmarkFinlandFrance

GermanyGreeceIreland

ItalyLuxembourgNetherlands

PortugalSpain

SwedenUnited Kingdom

2003

2005

2007


Electricity MarketUnbundling measures in Member States

Unbundling:transmission systemoperator

Unbundling:distributionsystem operator

Austria Legal AccountingBelgium Legal LegalDenmark Legal LegalFinland Ownership ManagementFrance Management AccountingGermany Legal AccountingGreece Legal/Mgmt AccountingIreland Legal/Mgmt ManagementItaly Legal/Own LegalLux Management AccountsNeth Ownership ManagementPortugal Legal AccountingSpain Ownership AccountingSweden Ownership LegalUK Ownership Legal


Electricity marketMarket structure in Member States


Generation

0102030405060708090

100

Top 3 generators Import capacity

Source: Eurostat


Electricity marketCustomer Switching


Estimated switching 1998-2001Large industrialusersswitch reneg

Small commercial/domesticswitch

<5% BE, GK

5-10% PT AT, DE, FI

10-20% FR, IR,LX, ES

SW

20-50% AT, DE,NL

BE UK

50+% UK, IT, DKES, UK, DK,FI, IR, DE,

SW, IT


20% 40% 60% 80% 100%

AustriaBelgium

DenmarkFinlandFrance

GermanyGreeceIreland

ItalyLuxembourgNetherlands

PortugalSpain

SwedenUnited Kingdom

Gas marketMember States’ existing plans


2003

2005

2007


Gas MarketUnbundling measures in Member States

Unbundling:transmission systemoperator

Unbundling:distributionsystem operator

Austria Legal LegalBelgium Legal LegalDenmark Legal LegalFrance Accounts AccountsGermany Accounts AccountsIreland Management ManagementItaly Legal LegalLux Accounts AccountsNeth Management AccountsSpain Ownership LegalSweden Accounts AccountsUK Ownership Ownership


Gas marketMarket structure in Member States


Production and Import

0102030405060708090

100

Top producer \ importer

Source: Eurostat


Gas marketCustomer Switching


Estimated switching: gasLarge industrialusersswitch reneg

Small commercial/domesticswitch reneg

<5%AT, BE, DE,

SW,DE, IT

5-10% LX, DK

10-20% FR, IT

20-50% NL, IRL, ES UK

50+% UK LX


Regulators’ Resources


0

50

100

150

200

250

300

350

AT BE DK FI FR DE GR IR IT LX NL PT ES SE UK

Number of Staff



Accession Countries



Czech Rep

Cyprus

Estonia

LatviaBulgaria

Turkey

Lithuania

RomaniaEU Min

HungarySlovakia

Poland

Slovenia

Malta

Electricity market Market Opening Plans

20% 40% 60% 80% 100%

2003

2005

2007



PublishedAccounts

Separatecorporateidentity

Separateoffices

Score/ 3

Estonia x x 1Latvia x x 1Lithuania x x 1Poland 3Czech Rep 3Slovakia 3Hungary x x x 0Slovenia x x 1Romania 3Bulgaria 3Turkey x 2Cyprus x x x 0Malta x x x 0

Electricity market Unbundling of TSO



TransmissionTariff

DistributionTariffs

Estonia Latvia Lithuania Poland Czech Rep Slovakia xHungary xSlovenia Romania Bulgaria xTurkey x xCyprus x xMalta x x

Electricity market Publication of network tariffs



Number of significantgenerationcompetitors

Scope forcross bordercompetition

Estonia 1 largeLatvia 1 largeLithuania 2 largePoland 9 limitedCzech Rep 1 limitedSlovakia 1 largeHungary 5 largeSlovenia 2 largeRomania 3 limitedBulgaria 7 limitedTurkey 1 limitedCyprus 1 zeroMalta 1 zero

Electricity market Concentration in generation market



Czech Rep

Estonia

LatviaBulgaria

TurkeyLithuania

RomaniaEU Min 2005

Hungary

Slovakia

PolandSlovenia

Gas market Market Opening Plans

20% 40% 60% 80% 100%

2003

2005

2007

1

1. Eligibility limited to national production



PublishedAccounts

Separatecorporateidentity

Separateoffices

Score/ 3

Estonia x x 1Latvia x x x 0Lithuania x x 1Poland x x x 0Czech Rep x x x 0Slovakia x x x 0Hungary x 2Slovenia x x 1Romania x x 1Bulgaria x x 1Turkey x x 1

Gas marketUnbundling of TSO



TransmissionTariff

DistributionTariffs

Estonia x xLatvia x xLithuania xPoland Czech Rep x xSlovakia xHungary x xSlovenia xRomania xBulgaria xTurkey x x

Gas market Publication of network tariffs



Number of significantwholesale competitors

Scope forcross bordercompetition

Estonia 2 limitedLatvia 1 limitedLithuania 4 limitedPoland 1 limitedCzech Rep 1 limitedSlovakia 1 limitedHungary 1 limitedSlovenia 1 limitedRomania 5 limitedBulgaria 1 limitedTurkey 1 limited

Gas market Concentration in wholesale gas market



0

50

100

150

200

250

300

Est Lat Lit Pol Cze Svk Hun Svn Rom Bul Tur Cyp Mal

Regulators’ Resources: Accession

Number of Staff


Conclusions: Member States


• Some progress in almost all Member States

• Remaining barriers as follows:-- high network tariffs

- dominant players

- insufficient interconnection

- lack of transparent capacity allocation

• Result: constrained competitive activity


• Process of market opening well underway in Candidate countries

• Some obstacles remain, as in current Member States

• Greater harmonisation and move to full market opening will provide considerable benefits


Conclusions: Candidates

Directorate General for Energy and Transport European Commission Directorate General for Energy and Transport Progress in the Electricity and Gas Single.

Documents

transport slide

energy council

transport progress

transport member states

transport production

transport gas market

generation market slide

gas slide