Electricity Infrastructure WorkshopBrussels, 13 February 2007

The framework for a Single European Electricity Market

Mrs Asta Sihvonen-Punkka, CEER EWG Chair

2

Overview of the ERGEG Response

The ERGEG response to Commission’s Communication ”An Energy Policy for Europe” (www.ergeg.org)

Five key issues The European Grids and EU obligations on

TSOs European networks bodies Regulatory oversight at national and EU level Accountability Effective unbundling

3

A European Grid

The European Grid will need to be defined in law so that each participating TSO will know what is required of its organisation

A European Grid Code should specify the responsibilities of network companies in relation to the provision of a European electricity grid

It should include standards on the planning of the grid maintenance of the grid operation of the grid information exchange among the TSOs Information control

4

A European TSO body

The operation and development of the European Grid will depend on the activities of individual TSOs but the European standards will need to be developed between them

Since the collective aspects cannot be fulfilled individually and can only be fulfilled by national TSOs coming together as a group, there is a need for a European networks body

These bodies should be developed by placing new obligations to the EU members of the existing organisations to form ETSOplus (for gas GIEplus)

5

The role of European Regulators

National level: Powers and independence of national regulators must be broadly harmonized

European level: Effective market oversight and duty to co-operate must be ensured

European-level regulation is needed for certain key EU-wide activities the starting point should be existing structures = ERGEGplus

Duties on a European regulatory body in the form of an enhanced ERGEGplus, and appropriate powers, to oversee the collective obligations of TSOs

6

Accountability and unbundling

Accountability Requirements on ETSOplus to publish annual

reports on the performance of the EU Grid Requirements on ERGEGplus to be

accountable to EU institutions for the fulfilment of its EU duties

Unbundling For energy regulatory arrangements the

preferred way would be full ownership unbundling

Thank you for your attention