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Unbundling of gas DSOs in the Energy Community: status quo & steps forward Andrius Šimkus Energy Community Secretariat Gas Distribution Workshop: measurement & unbundling in focus Vienna, 26 April 2018
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Unbundling of gas DSOs in the Energy Communitybf52f9ec-2baf-420f-a59e... · Unbundling of gas DSOs in the Energy Community: status quo & steps forward Andrius Šimkus Energy Community

Aug 05, 2018

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Page 1: Unbundling of gas DSOs in the Energy Communitybf52f9ec-2baf-420f-a59e... · Unbundling of gas DSOs in the Energy Community: status quo & steps forward Andrius Šimkus Energy Community

Unbundling of gas DSOs in the Energy Community:status quo & steps forward

Andrius Šimkus Energy Community Secretariat

Gas Distribution Workshop: measurement & unbundling in focus

Vienna, 26 April 2018

Page 2: Unbundling of gas DSOs in the Energy Communitybf52f9ec-2baf-420f-a59e... · Unbundling of gas DSOs in the Energy Community: status quo & steps forward Andrius Šimkus Energy Community

Legal unbundling

-Art. 26(1)

Functional unbundling

-Art. 26(1), (2)

Accounting unbundling

-Art. 31

Information unbundling

-Art. 27

Monitoring

-Art. 26(3), 41(1)(b) et al.

Identity separation

-Art. 26(3)

Directive 2009/73/EC*

Unbundling of gas DSOs

Page 3: Unbundling of gas DSOs in the Energy Communitybf52f9ec-2baf-420f-a59e... · Unbundling of gas DSOs in the Energy Community: status quo & steps forward Andrius Šimkus Energy Community

#1 Legal & functional unbundling

Page 4: Unbundling of gas DSOs in the Energy Communitybf52f9ec-2baf-420f-a59e... · Unbundling of gas DSOs in the Energy Community: status quo & steps forward Andrius Šimkus Energy Community

Separate network

company

DSO

VIU

-

producer

-

supplier

Legal unbundling

Page 5: Unbundling of gas DSOs in the Energy Communitybf52f9ec-2baf-420f-a59e... · Unbundling of gas DSOs in the Energy Community: status quo & steps forward Andrius Šimkus Energy Community

Functional unbundling

Organisational

independence

Decision-making

independenceDSO

management separation

independent performance

limited common services

effective decision-making

necessary resources

limited VIU's interference

compliance programme

Page 6: Unbundling of gas DSOs in the Energy Communitybf52f9ec-2baf-420f-a59e... · Unbundling of gas DSOs in the Energy Community: status quo & steps forward Andrius Šimkus Energy Community

De minimis threshold for exemption from Art. 26 of Dir. 2009/73/EC:

DSOs with less than 100.000 connected customers

* Only 189 out of 2.400 DSOs (electricity & gas) in Europe exceed the threshold

Source: CEER Conclusion Paper, The Future Role of DSOs, 13 July 2015

Allowed derogation – Art. 26(4) Dir. 2009/73/EC

Page 7: Unbundling of gas DSOs in the Energy Communitybf52f9ec-2baf-420f-a59e... · Unbundling of gas DSOs in the Energy Community: status quo & steps forward Andrius Šimkus Energy Community

#2 Gas DSOs in Contracting Parties

Page 8: Unbundling of gas DSOs in the Energy Communitybf52f9ec-2baf-420f-a59e... · Unbundling of gas DSOs in the Energy Community: status quo & steps forward Andrius Šimkus Energy Community

Licensed

gas DSOs

1

Mandatory

unbundling

1*

Albania

Page 9: Unbundling of gas DSOs in the Energy Communitybf52f9ec-2baf-420f-a59e... · Unbundling of gas DSOs in the Energy Community: status quo & steps forward Andrius Šimkus Energy Community

Albgaz

o TEP rules transposed

o DSO below threshold

o combined gas TSO & DSO

o certified as OU TSO

Albania

Page 10: Unbundling of gas DSOs in the Energy Communitybf52f9ec-2baf-420f-a59e... · Unbundling of gas DSOs in the Energy Community: status quo & steps forward Andrius Šimkus Energy Community

Licensed

gas DSOs

5

Bosnia and Herzegovina

Mandatory

unbundling

0

Page 11: Unbundling of gas DSOs in the Energy Communitybf52f9ec-2baf-420f-a59e... · Unbundling of gas DSOs in the Energy Community: status quo & steps forward Andrius Šimkus Energy Community

Gas DSOs

o TEP rules transposed in RS

o SEP rules apply in FBiH

o all DSOs below threshold

o engaged in gas supply

Bosnia and Herzegovina

Page 12: Unbundling of gas DSOs in the Energy Communitybf52f9ec-2baf-420f-a59e... · Unbundling of gas DSOs in the Energy Community: status quo & steps forward Andrius Šimkus Energy Community

Licensed

gas DSOs

39

Mandatory

unbundling*

3

Georgia

Page 13: Unbundling of gas DSOs in the Energy Communitybf52f9ec-2baf-420f-a59e... · Unbundling of gas DSOs in the Energy Community: status quo & steps forward Andrius Šimkus Energy Community

Socar

KazTransGaz

Sakorgagazi

o no legal basis for unbundling

o TEP transposition in progress

o deadline: 31 Dec. 2020

o no legal/functional unbundling

o engaged in gas supply

Georgia

Page 14: Unbundling of gas DSOs in the Energy Communitybf52f9ec-2baf-420f-a59e... · Unbundling of gas DSOs in the Energy Community: status quo & steps forward Andrius Šimkus Energy Community

Licensed

gas DSOs

3

Mandatory

unbundling

0

FYR of Macedonia

Page 15: Unbundling of gas DSOs in the Energy Communitybf52f9ec-2baf-420f-a59e... · Unbundling of gas DSOs in the Energy Community: status quo & steps forward Andrius Šimkus Energy Community

Gas DSOs

o TEP transposition in progress

o SEP rules apply

o all DSOs below threshold

o engaged in gas supply

FYR of Macedonia

Page 16: Unbundling of gas DSOs in the Energy Communitybf52f9ec-2baf-420f-a59e... · Unbundling of gas DSOs in the Energy Community: status quo & steps forward Andrius Šimkus Energy Community

Licensed

gas DSOs

25

Mandatory

unbundling

1

Moldova

Page 17: Unbundling of gas DSOs in the Energy Communitybf52f9ec-2baf-420f-a59e... · Unbundling of gas DSOs in the Energy Community: status quo & steps forward Andrius Šimkus Energy Community

Chisinau-gaz

o TEP rules transposed

o the only DSO above threshold

o unbundling data provided to ECS

o not engaged in gas supply

Moldova

Page 18: Unbundling of gas DSOs in the Energy Communitybf52f9ec-2baf-420f-a59e... · Unbundling of gas DSOs in the Energy Community: status quo & steps forward Andrius Šimkus Energy Community

Licensed

gas DSOs

33

Mandatory

unbundling

0*

Serbia

Page 19: Unbundling of gas DSOs in the Energy Communitybf52f9ec-2baf-420f-a59e... · Unbundling of gas DSOs in the Energy Community: status quo & steps forward Andrius Šimkus Energy Community

Gas DSOs

o TEP rules transposed

o all DSOs below threshold

o engaged in gas supply

o unbundling of accounts reported

o Srbijagas case: >90k of customers

Serbia

Page 20: Unbundling of gas DSOs in the Energy Communitybf52f9ec-2baf-420f-a59e... · Unbundling of gas DSOs in the Energy Community: status quo & steps forward Andrius Šimkus Energy Community

Licensed

gas DSOs

44

Mandatory

unbundling

31

Ukraine

Page 21: Unbundling of gas DSOs in the Energy Communitybf52f9ec-2baf-420f-a59e... · Unbundling of gas DSOs in the Energy Community: status quo & steps forward Andrius Šimkus Energy Community

31 DSO for

unbundling

o TEP rules transposed

o unbundling in focus (NEURC)

o unbundling data being collected

o tbc on case-by-case basis

o the issue: direct interest in supply

Ukraine

Page 22: Unbundling of gas DSOs in the Energy Communitybf52f9ec-2baf-420f-a59e... · Unbundling of gas DSOs in the Energy Community: status quo & steps forward Andrius Šimkus Energy Community

#3 ECS focus on unbundling

Page 23: Unbundling of gas DSOs in the Energy Communitybf52f9ec-2baf-420f-a59e... · Unbundling of gas DSOs in the Energy Community: status quo & steps forward Andrius Šimkus Energy Community

Transposition of TEP

unbundling rules

Secondary legislation for unbundling of

DSOs

Unbundling & verification by

NRA

Compliance review by ECS

Assistance and/or legal measures

Page 24: Unbundling of gas DSOs in the Energy Communitybf52f9ec-2baf-420f-a59e... · Unbundling of gas DSOs in the Energy Community: status quo & steps forward Andrius Šimkus Energy Community

Ukraine

31 DSO

Georgia*

3 DSOs

Moldova

1 DSO

Page 25: Unbundling of gas DSOs in the Energy Communitybf52f9ec-2baf-420f-a59e... · Unbundling of gas DSOs in the Energy Community: status quo & steps forward Andrius Šimkus Energy Community

2017: questionnaire regarding the unbundling of gas DSOs

-

collection of information covering all unbundling criteria

ECDSO-g – TF Unbundling

Ukraine

19 (+1) responses

Georgia

1 response

Moldova

1 response

Page 26: Unbundling of gas DSOs in the Energy Communitybf52f9ec-2baf-420f-a59e... · Unbundling of gas DSOs in the Energy Community: status quo & steps forward Andrius Šimkus Energy Community

#3.1 Ukraine

Page 27: Unbundling of gas DSOs in the Energy Communitybf52f9ec-2baf-420f-a59e... · Unbundling of gas DSOs in the Energy Community: status quo & steps forward Andrius Šimkus Energy Community

19 DSOs responded to the ECS’s questionnaire

Page 28: Unbundling of gas DSOs in the Energy Communitybf52f9ec-2baf-420f-a59e... · Unbundling of gas DSOs in the Energy Community: status quo & steps forward Andrius Šimkus Energy Community

Separate network

company

DSO

Legal unbundling

subsidiary

supplier

(e.g. “zbut”)

N.B.: except 1 DSO

Page 29: Unbundling of gas DSOs in the Energy Communitybf52f9ec-2baf-420f-a59e... · Unbundling of gas DSOs in the Energy Community: status quo & steps forward Andrius Šimkus Energy Community

Functional unbundling

Separate organisational

structure & management

Other appointments & interests

of managers

Management

separation

Separate internal policies

(e.g. HR, remuneration, etc.)

De facto functional & financial

independence of managers

Independent

performance

DSO’s functions concentrated

within the network company

Decision-making

rights

Ownership/possession of the

network & other resourcesNecessary resources

Reported insufficiency of

(financial, technical, HR)

resources

No common services reported

(except for 1 DSO!)Common services

Status of billing & settlement

functions

Financial planning:

DSO supplier relations

?

Page 30: Unbundling of gas DSOs in the Energy Communitybf52f9ec-2baf-420f-a59e... · Unbundling of gas DSOs in the Energy Community: status quo & steps forward Andrius Šimkus Energy Community

Other unbundling criteria

Adoption of CPs confirmed

(except for 1 DSO)

Not all DSOs have CPs adopted:

NEURC’s proceedings

Compliance

programme

Unbundling of accounts statedUnbundling of

accounts

Information unbundling, incl.

confidentiality, stated

Information

unbundling

Identity separation

(branding, premises &

communication) stated

Identity separationExpress linking with subsidiary

suppliers

DSO representation in

subsidiary suppliers

?

Page 31: Unbundling of gas DSOs in the Energy Communitybf52f9ec-2baf-420f-a59e... · Unbundling of gas DSOs in the Energy Community: status quo & steps forward Andrius Šimkus Energy Community

Reporting by remaining DSOs(questionnaire)

Information request from

NEURC

Addressing individual DSO

cases

Proposed solutions to

DSOs & NEURC

(and/or legal measures)

Steps forward: 2018

Page 32: Unbundling of gas DSOs in the Energy Communitybf52f9ec-2baf-420f-a59e... · Unbundling of gas DSOs in the Energy Community: status quo & steps forward Andrius Šimkus Energy Community

#3.2 Georgia

Page 33: Unbundling of gas DSOs in the Energy Communitybf52f9ec-2baf-420f-a59e... · Unbundling of gas DSOs in the Energy Community: status quo & steps forward Andrius Šimkus Energy Community

Pilot ECS’s questionnaire sent to

Fully integrated

distribution & supply

undertaking

DSO

supplier

No unbundling: de jure & de facto

Supply is considered as part of

the DSOs activities

Same pattern in other

2 DSOs

Page 34: Unbundling of gas DSOs in the Energy Communitybf52f9ec-2baf-420f-a59e... · Unbundling of gas DSOs in the Energy Community: status quo & steps forward Andrius Šimkus Energy Community

Finalisation of primary & secondary legislation

Assistance in the unbundling process to

GNERC & DSOs

Conclusion of the results at the

end of 2020

Steps forward: 2018+

Page 35: Unbundling of gas DSOs in the Energy Communitybf52f9ec-2baf-420f-a59e... · Unbundling of gas DSOs in the Energy Community: status quo & steps forward Andrius Šimkus Energy Community

#3.3 Moldova

Page 36: Unbundling of gas DSOs in the Energy Communitybf52f9ec-2baf-420f-a59e... · Unbundling of gas DSOs in the Energy Community: status quo & steps forward Andrius Šimkus Energy Community

Legal unbundling

Separate network

company

DSO

Page 37: Unbundling of gas DSOs in the Energy Communitybf52f9ec-2baf-420f-a59e... · Unbundling of gas DSOs in the Energy Community: status quo & steps forward Andrius Šimkus Energy Community

Functional unbundling

Separate organisational

structure & CEO

Moldovagaz directly appoints

the CEO

Management

separation

Separate internal policies

(e.g. HR, remuneration, etc.)

De facto functional & financial

independence of managers

Independent

performance

DSO’s functions concentrated

within the network company

Decision-making

rights

Ownership of the network

& other resourcesNecessary resources

No common services reported

(except for 1 DSO!)Common services

Status of billing & settlement

functions

Moldovagaz’s intervention

beyond the financial plan

?

Page 38: Unbundling of gas DSOs in the Energy Communitybf52f9ec-2baf-420f-a59e... · Unbundling of gas DSOs in the Energy Community: status quo & steps forward Andrius Šimkus Energy Community

Other unbundling criteria

Adoption of the CP confirmedCompliance

programme

Unbundling of accounts statedUnbundling of

accounts

Information unbundling, incl.

confidentiality, stated

Information

unbundling

Identity separation

(branding, premises &

communication) stated

Identity separation

Direct CEO’s accountability

before Moldovagaz

?

Page 39: Unbundling of gas DSOs in the Energy Communitybf52f9ec-2baf-420f-a59e... · Unbundling of gas DSOs in the Energy Community: status quo & steps forward Andrius Šimkus Energy Community

Identity separation

(branding)

Page 40: Unbundling of gas DSOs in the Energy Communitybf52f9ec-2baf-420f-a59e... · Unbundling of gas DSOs in the Energy Community: status quo & steps forward Andrius Šimkus Energy Community

Information request from

ANRE

Necessary clarification with

Chisinau-gaz

Proposed solutions

(and/or legal measures)

Steps forward: 2018

Page 41: Unbundling of gas DSOs in the Energy Communitybf52f9ec-2baf-420f-a59e... · Unbundling of gas DSOs in the Energy Community: status quo & steps forward Andrius Šimkus Energy Community

#4 Post scriptum

Page 43: Unbundling of gas DSOs in the Energy Communitybf52f9ec-2baf-420f-a59e... · Unbundling of gas DSOs in the Energy Community: status quo & steps forward Andrius Šimkus Energy Community

www.energy-community.org

Thank you

for your attention!