the completion of the internal market and the way ahead: acer's view

The completion of the internal market and the way ahead – ACER’s view

Dennis Hesseling Head of the Gas Department, ACER 8 March 2013 - Vienna Forum - Wien

.Introduction ACER .Infrastructure investment .Framework Guidelines / Network codes

Overview

Therefore, ACER .is NOT a European Energy Regulator .… but plays a CENTRAL ROLE in the

institutional framework introduced by the 3rd

Energy Package

The Mission of ACER

“The purpose of the Agency shall be to assist the [NRAs] in exercising, at Community level, the regulatory tasks performed in the Member States and, where necessary, to coordinate their action”.

Source: Regulation (EC) No 713/2009

Institutional set-up third energy package

NRA NRA NRA NRA

TSO TSO ISO ITO

ENTSO

ACER

European Commission

- Deadline set by the EU Council in 2011

What does this mean in practice? - EU-wide network codes must be made legally binding through the “comitology” procedure - The TEN-E Regulation must be finalised and the cross-border Projects of Common Interest (PCIs) must be identified and funded - The Regional Initiatives must be strengthened to deliver the IEM region by region

The Internal Energy Market (2014)

How are we doing so far? .3rd Package has been transposed and must be implemented fully and effectively into national law .EC must monitor and pursue infringements .EU-wide network codes and market rules must be developed and adopted as soon as possible .National energy market designs need to become more European to achieve market integration .Voluntary regional initiatives and integration projects are key and “pilot” for future network codes .Monitoring is essential to indicate how energy markets operate and to highlight where improvements are needed

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Source: ACER/CEER Market monitoring report 2011

Planning Implementation

EU infrastructure investment: planning and implementation

TSOs within Member State

National TYNDP

(binding, annual)

TSOs within Region

Regional investment plan

(non-binding, biennial)

ENTSOs

Community-wide TYNDP

(non-binding, biennial)

ACER

Opinion on draft

NRAs / ACER

Assess consistency

between the two plans

May recommend

amending either or both

NRAs

Monitor implementation

If not delivered by TSOs:

- Require TSO to execute

investment

- Organise tender procedure for

third party investment

ACER

Monitors implementation

May make recommendations to TSOs

and NRAs on implementation

“Community

aspects”

Energy Infrastructure Package (E+G) Developing trans-European energy networks

TYNDP and Projects of Common Interest (PCI) - Based on Cost-Benefit Analysis; PCIs are a subset of the TYNDP

Priority Areas

“Toolbox” to speed up implementation - Faster and more transparent permitting processes; improved cost allocation; incentives; financial support (if/when required)

Investment Needs and Financing Gap

Legislative proposal October 2011, aimed adoption mid 2013

. The EC establishes regional coordination groups . Project promoters present projects to the regional groups, which seek Member States’ approval and submit to ACER . ACER submits its opinion on the project lists to the EC . Decisions for adoption are taken by the EC . ENTSOs submit to ACER & EC harmonised CBA methodology . ACER provides opinion on CBA methodology . If project adopted, project promoter submits investment request to relevant NRA(s) and specify cross-border cost allocation . The NRAs involved take joint decision about x—border project and notify to ACER . ACER only intervenes in case dispute between NRAs

EIP: who does what

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EC defines Priority Areas

ACER develops Framework Guidelines (FG)

and submits them to the Commission

ENTSO develops Network Codes (NC)

ACER checks compliance of NC with FG

ACER recommends NC to EC for adoption

EC submits NC to Comitology

EC adopts NC which becomes binding

Developing Framework Guidelines and Network Codes

NC

Gas Framework Guidelines and Network Codes

2011 2012 2013 2014 2015

FG/NC on Capacity Allocation Mechanisms (CAM) FG

Commission Guidelines on Congestion Management Procedures

FG/NC on Harmonised Transmission Tariff Structures

FG/NC on Gas Balancing in Transmission Systems

WS

CG

EV COMITOLOGY

COMITOLOGY

NC

NC

EV

EV

COMITOLOGY

COMITOLOGY

FG NC EV COMITOLOGY

ACER ENTSOG EP - EC EV = Evaluation of Network Codes

FG

FG/NC on Interoperability Rules

FG

Regulatory

Approach

(3rd Package)

• New institutional framework (ACER, ENTSOs)

• Framework Guidelines in priority areas defined by the Commission

• Network Codes developed by ENTSOs, to be enforced by the EC

“Voluntary”

Implementation

(Regional initiatives)

• Pilot projects to be implemented before legally required

• Testing early implementation of the rules set up in the Framework Guidelines and Network Codes

• Identification of possible issues

The Regional Initiatives process complementary to the FGs and NCs process

Gas: Early CAM implementation projects

The promotion and facilitation of truly joint (cross-regional) CAM platforms is one of the priorities of the Gas Regional Initiative in 2013

• CAM Implementation Roadmap for early implementation of CAM NC carried

out by ENTSOG and ACER, in cooperation with TSOs & NRAs

• Main aim to facilitate early implementation of CAM NC by:

Promoting experience sharing and exchange of lessons learned between pilot projects

Identifying good practices and critical issues of EU relevance

Informing adequately all interested stakeholders

Enabling ACER and ENTSOG to monitor the process, ensuring coherence of solutions

• Four pilot projects currently part of CAM Roadmap:

PRISMA platform (involving 20 TSOs from 7 countries)

Pilot projects for allocation of bundled capacity between Hungary-Romania, at Lasów IP

(Germany-Poland) and in Spain-Portugal interconnection

• Voluntary implementation has already started, ahead of mandatory

implementation deadline of the CAM NC, expected to be adopted on Q3 2013

Regional Initiatives: Way forward

• Stepping up pace towards the goal essential

• Despite progress in concrete projects, further integration and convergence within and between the regions needed

• Focus on areas which can contribute more to creation of IEM, in particular CAM

• Commitment and engagement of all parties (European Commission, ACER, NRAs, Member States, TSOs, other stakeholders) essential

• ACER continue closely monitor progress, coordinating and supporting where needed

• ACER invites all stakeholders to participate actively in RI and give feedback about projects planned

Thank you for your

attention

Thank you for your attention Questions and answers

www.acer.europa.eu

the completion of the internal market and the way ahead: acer's view

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