The role of ACER In the Regional Initiatives Steve Gordon Head Of the Gas Department North West Regional Initiatives 2011.

The role of ACER In the Regional Initiatives

Steve GordonHead Of the Gas DepartmentNorth West Regional Initiatives 2011

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Goal of Single Market

- The goal is to deliver single competitive markets for gas and

electricity- Teamwork is required to achieve the

goal- Players will need to work together

- to achieve the desired result- where energy traded across internal

EU borders is much the same as if it is traded within each Member State.

“The internal market should be completed by 2014 so as to allow gas and electricity to

flow freely.” (EU Council conclusions, 4 February 2011)

The goal of the internal market is achievable with stakeholder participation

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Third Package instruments

Regulatory

approach

• New institutional framework• Framework Guidelines in

priority areas defined by the Commission on the basis of which the ENTSOs develop Network Codes

i.e. Capacity Allocation, Balancing, Interoperability and Tariffs

“Voluntary”

implementation

• Pilot projects to be implemented before legally required through the Regional Initiatives

• Guidelines of Good Practice (e.g. storage, LNG)

• EaseeGas Common Business Practices

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ENTSOG ACER CEER ENTSOE

Co-operation & Co-ordination

Each of the representative bodies works together to deliver common goals

Working Together

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ACER is an Essential part of the Mix

ACER

EuropeanCommission

NRAsRegulatoryAuthorities

ENTSOG/TSOs

OtherStakeholders

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ACER Current Mission

“The purpose of the Agency shall be to assist the [NRAs] in exercising, at Community level, the regulatory tasks performed in the Member States and, where necessary, to coordinate their action”.

Article 1(2), Regulation (EC) No. 713/2009

Therefore, ACER.is NOT a European Energy Regulator.… but plays a CENTRAL ROLE in the new institutional framework introduced by the 3rd Legislative Package on Energy

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NRA Co-operation

TSO Co-operation

Market Monitoring

Framework Guidelines

and Network Codes

ACER’s Departmental Structure

The Regional Initiatives are relevant to our 4 key areas of delivery

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Key Stakeholder Groups

Competitive Market

ArrangementsENTSO

Eurelectric

ACER

CEER

Eurogas

IFIECDSO asoc.

EFET

OGP

European Commission

Energy Community

Each stakeholder group has the opportunity to provide feedback on the proposals

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National

Markets

Cross

Border

Arrangements

Regional

Application

How Far Do We Need to Go?

Delivering the Internal Energy Market requires Regional progress

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Why is the Regional Approach so Important?

Regional

Projects

Regional

Plans

Regional Hubs

Regional

Similarities

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Framework Guidelines and Network Codes

Network Codes

(a) network security and reliability rules(b) network connection rules(c) third-party access rules(d) data exchange and settlement rules(e) interoperability rules(f) operational procedures in an emergency(g) capacity-allocation and congestion-management rules(h) rules for trading related to technical and operational provision of network access services and system balancing(i) transparency rules(j) balancing rules(k) rules regarding harmonised transmission tariff structures(l) energy efficiency regarding electricity networks.

Framework Guidelines

entso

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Making Proposals Work

Is/was a change in direction required to meet our goals?

Harmonisation

Milestones Objectives

Regional AchievementsImplementation Issues Timing Issues

Concrete Proposals NecessaryChange in management Change in direction

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ACER Role in Regional Initiatives

SUPPORT

ASSISTANCE

COORDINATION

COOPERATION

MONITORINGAND

REPORTING

NRAMarket

TSO

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ACER 2011 and 2012 Work Programmes

Development of Framework Guidelines

Opinions on ENTSO Statutes

Monitoring of the Internal Energy Market

Inter-TSO Compensation Mechanism

Opinion/recommendationson ENTSO WP and TYNDP

Monitoring of the Regional Initiatives

Reasoned Opinions on Network Codes

REMIT Implementation

Development of Framework Guidelines

Opinion/recommendationson ENTSO WP and TYNDP

Monitoring of the Regional Initiatives

Co-ordination of the Regional Initiatives

Monitoring of the Internal Energy Market

EIP - Projects of Common Interest

TSOCertification

2011 2012

TSOMonitoring

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Thank you for your attention

www.acer.europa.eu