Nicolaas Bel DG Energy

Completing the EU internal energy market

IFIEC, 22 November 2011

| Completing the EU internal energy market

EU energy policy

EU energy policy defined by three objectives

Security of Supply

Competitiveness

Sustainability

| Completing the EU internal energy market

Completing the EU internal energy market

. Target date 2014

.What is to be done?

» Implementing Third energy package and flanking measures» Harmonising market rules and network operation rules» Enforcing competition and State aid rules» Enhancing investments in infrastructure» Promoting regional initiatives

| Completing the EU internal energy market

Implementing the Third energy package

.A timely and correct implementation is a precondition for market opening and integration in the EU

.Key topics:

» Unbundling of networks » Strengthening of independence and powers of national regulators » New institutional set up

. Implementation process to be accelerated

. Flanking measures

| Completing the EU internal energy market

Harmonising market rules and network operation rules

.Rules to operate networks and markets on the basis of common principles

.Objective: facilitate cross-border trade and reduce transaction costs to the benefit of businesses and consumers

.Development of framework guidelines and network codes; extensive process involving stakeholders

| Completing the EU internal energy market

Introducing a new institutional set up

.ACER» Key role in developing technical rules at EU level

together with ENTSOs and Commission» Can adopt decisions on cross border issues» Monitors and reports on market functioning

.ENTSO» Key role in developing technical rules at EU level

together with ACER and Commission» Develop network development plans» Promote regional cooperation between TSOs

| Completing the EU internal energy market

See: http://ec.europa.eu/energy/infrastructure/strategy/2020_en.htm

Baltic Energy Market Interconnectio

n Plan

Electricity & Gas

North-South Gas Corridorin Western Europe North-South Gas

Interconnections& Oil Supply

South Western Electricity Interconnections

Central / South Eastern Electricity Connections

SouthernGas Corridor

North SeasOffshore Grid

Gas

Electricity

Electricity and Gas

Oil and Gas

Smart Grids for Electricityin the EU

Enhancing investments in infrastructure

| Completing the EU internal energy market

Enforcing competition rules in the EU

.Energy regulation interacts directly with application of competition and State aid rules

.EU internal energy market can only function if rules on competition and State aids are respected

.Effective enforcement by Commission and by national competition authorities remains essential

| Completing the EU internal energy market

Promoting regional initiatives in the EU

.New dynamism in regional initiatives - both for electricity and for gas - is fundamental to get to full market integration by 2014

| Completing the EU internal energy market

Coordinating national energy policies

.More cooperation and coordination needed between Member States

. Future market design

.Roadmap 2050 under preparation

| Completing the EU internal energy market

EU + EEA

Energy Community Parties

Energy Community Observers

Other Neighbourhood Policy Countries

Source: European Commission

Extending the EU energy market to neighbouring countries

Thank you for your attention