- prepared by ecs - 1 implementation and application of energy community law in the contracting...
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- Prepared by ECS - 1
Implementation and Application of Energy Community Law in the Contracting Parties of
the Energy Community
Energy Community SecretariatRozeta Karova, Ph.D.
Jean Monnet Seminar in European Union Law11 April 2012, Kyiv, Ukraine
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Outline of the presentation
Energy Community - objectives and means
Benefits from regional energy cooperation
Stakeholders
Institutional framework
Energy Community Treaty - activities
-The Energy Community Acquis – Title II
- Mechanism for Operation of Network Energy Markets – Title III
- Creation of a single energy market, Title IV
Implementation of energy acquis in the Contracting Parties
Decision Making Process
Enforcement - Dispute Settlement Mechanism
Concluding remarks
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Energy Communityobjectives and means
OBJECTIVES
a) Create a single and stable regulatory space coupled with a stable market framework attracting investment
b) Integrated regional energy market that increases cross-border trade in energy, guarantees energy supply and takes into consideration climate and social aspects
c) The regional energy market should be fully integrated in the EU internal energy market
MEANS
- application of the EU acquis communautaire
- through the implementation of the Energy Community Treaty
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Benefits from Regional Energy Cooperation
Removal of legal and administrative barriers Legal certainty Attracting more investments
Access to larger and predictable energy marketsFree movement of network energyTitle IV: The Creation of a Single Energy Market
9 Contracting Parties & 27 EU member states
Establishment of Coordinated Auction OfficeCommon cross-border capacity allocation – better, transparent capacity utilization
Coordinated approach to investmentsProjects with regional dimension identified
Availability of reliable, low-cost and environmental friendly sources of energyImproving the energy security
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StakeholdersParties, Participants, Observers
Parties:The EU and 9 Contracting Parties:AL, BiH, CR, FYR MK, MNE, SR, UNMIK + MD (1 May 2010); UA (1 February 2011)
15 Participants: EU MS
4 Observers:Armenia, Georgia; Norway; Turkey
Donors
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Institutional framework
FORAFORA
NRANRA
Gov.Gov.
Min.Min.
Indep.Indep.
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The acquis adopted by the Energy Community Treaty Electricity Gas Environment Competition Renewable energy
Evolution of the acquis
Energy Community Treaty – activities (1):The Energy Community Acquis, Title II
Adopted by the Ministerial Council:- Security of electricity & gas supply, 2007- Energy efficiency, 2009, 2010- Third package (6 October 2011)
Recommendations, 2010:- RES-Third energy package
Planned for adoption RES, Oil stocks and harmonisation of energy statistics (2012)
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Energy Community Treaty – activities (2):Mechanism for Operation of Network Energy Markets, Title III
Setting up specific regulatory framework for the efficient operation of gas and electricity markets
-Single mechanism for cross-border transmission (Art. 28)
-Provision of energy to citizens (Art. 31-33)
-Harmonisation of market designs & measures fostering free establishment of Network Energy companies (Art. 34)
-Promoting RES & EE (Art. 35)
-Safeguard measures (Art. 36-39)
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Energy Community Treaty – activities (1):Creation of a single energy market, Title IV
Creation of gas and electricity market without internal frontiers:
-Removal of internal frontiers for trade in Network Energy (Art. 41-42)
External energy trade policy
- Regulation of imports and exports of Network Energy to and from third countries (Art. 43)
Mutual assistance in the event of disruption (Art. 44-46)
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Energy Acquis in the Contracting PartiesState of play
National dimension Transposition of the acquis – progress in 2011o primary legislation - gap between the Contracting Partieso secondary legislation – Implementation Partnership memoranda signed with few CPs
Practical implementation – challenges aheado regulated end-user prices and cost-reflectivity of tariffso bad debts, losses, collection rates o unbundlingo market opening o ensuring eligibility
Regional dimensiono Low level of energy tradingo Opening of the wholesale markets and CAO – electricityo Gas infrastructure projectso Security of supply
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Implementation of the Energy Community AcquisFocus on Ukraine
Recent activities and challenges - Legal framework to be developed further:
o draft Electricity Law and draft Natural Monopolies Law under preparationo No State aid Law adopted yeto Gas Law adopted in 2010
- Eligibility to be ensured:o from 1 January 2012 for all non-household customerso from 1 January 2015 for all customers
- Institutions establishedo NERC and Antimonopoly Commission
- Market and regulatory reforms
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Decision Making Process Title VI EnCT
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Decision Making Process (2)
Title Measures concerning (Art of EnCT)
Proposal Majority Geog. scope
II: Extension of the acquis* ex. 3rd package
- Art. 24 & 25 EC Simple majority
CPs
III: Mechanism for Operation of Network Energy Markets *establishing CAO
- Art. 28- Art. 31-39
PartyECS
2/3 majority* Positive vote-EC
CPs + AT, GR, HU, IT, SI
IV: The Creation of Single Energy Market
- Art. 41-46 Contracting Party
Unanimity CPs + 27 EU MS
Article 100 EnCT:-amendments of the EnCT-implement new acquis & extend EnCT to other energy products (ex. oil)-accession of new CP (ex. MD & UA)
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Enforcement: Dispute Settlement Mechanism (1)Articles 90-93 EnCT: Failure of a CP to comply with EnC law
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Enforcement: Dispute Settlement Mechanism (2)
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Concluding Remarks
From a pre-accession tool for the SEE countries to step towards the creation of a pan-European energy market
The Contracting Parties - not only participants into the Stabilisation and Association Process, but also participants into the European Neighbourhood Policy
Strong benefits from regional cooperation in energy - not related only to the EU membership
Regional Energy Market - even after some of the Contracting Parties accede the EU
Regional Energy Markets = steps towards establishing the internal energy market
The Energy Community is a “success and model for regional cooperation on energy matters” (European Commission, 10 March 2011)
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Thank you for your attention!
Rozeta KAROVAEnergy LawyerEnergy Community SecretariatAm Hof 4, Level 5A-1010 ViennaEmail: rozeta.karova@energy-community.orgwebsite: http://www.energy-community.org/
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