Introduction

FUI SG Conference – Dublin16 June 2010

Martin CrouchPartner – European Strategy

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Overview

• EU energy policy: priorities and legislation• The “Third Package”: key elements• ACER: the evolving role of the European Regulators• Regional Initiatives: developing regional markets

and implementing practical solutions

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PART 1 – SOME CONTEXT

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Competitive markets

Security of Supply

Sustainability

Q) How to achieve “security, sustainability + competitiveness”?

Single European Electricity Market

EU POLICY PRIORITIES

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• Already in place (examples)– 2nd package (still being implemented)– First renewables directive and ETS phases 1 and 2– Energy services directive– Congestion management guidelines

• Adopted but not yet implemented– 3rd package– Green package– Inter-TSO Compensation

• Expected– Energy Infrastructure Package– Energy Market integrity legislation– Transparency Guidelines

• DG COMP and court cases

LEGISLATION

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OVERALL TIMETABLE

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PART 2 – ACER “EMPOWERING REGULATORS”

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ACER’S ORGANISATIONAL STRUCTURE

Director

Board of Regulators(BoR)

Administrative Board(AB)

Board of Appeals(BA)

Responsible for budget

Needs to give a favourable opinion to adopt opinions

or decisions

Head of Gas Unit Head of Electricity Unit

xxx xxx xxxxxx

Decides on appeals of legally-binding

decisions

Legal, Finance, HR, etc…

Budget: € 8-9 MStaff: 40-50

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ESTABLISHMENT OF THE AGENCY

Appoint Director

April/May 10 March 11

Agency becomes operational

Dec 09

Decision onlocation

Staff recruitment

Welcome to Ljubljana…

Remainder 2010

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Areas for codes cf. Article 8 (6) (a) – (l) of the Regulation (EC) 714/2009Framework Guidelines cf. EU Commission Presentation of the 3rd Package at the XVI Florence Forum

(http://ec.europa.eu/energy/gas_electricity/doc/forum_florence_electricity/meeting_016.zip )

System Operation FG

System Operation FG System Operation FG

System Operation FGConnection FG

European Tariff FGMarket Information FG Balancing FG

Wholesale Market FGWholesale Market FG

LEGEND:

Network codes

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OTHER FUNCTIONS

• Resolving cross-border disputes (includes exemption)– Six month period to produce a final or interim decision

• “Peer Review” of NRA decisions– Commission can request ACER to peer review any NRA decision– Check compliance with European legislation– Four months for Regulator to comply

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PART 3 – REGIONAL INITIATIVES

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• Tri-lateral market coupling and CWE

• Nordpool and EMCC

DEVELOPING REGIONAL MARKETS

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