GIE Annual Conference Recent developments in Transparency in the EU Alexander Gee, DG Competition 23 November 2007 GIE Annual Conference

Introduction Transparency identified as one of five main barriers to competition Creates a level playing-field Builds confidence in the market Inquiry focused on: access to transit pipelines secondary trading Storage the “three-or-more” rule 23 November 2007 GIE Annual Conference

Sector Inquiry Almost all agreed: information should be published without direct contact with primary capacity holder (often the incumbent) cover technical, contracted, available capacity cover forecast and historical availability cover storage in detail and into the future TSOs should ensure use-it-or-lose-it provisions applied and facilitate secondary trading 23 November 2007 GIE Annual Conference

Sector Inquiry: three-or-more rule Published information can be limited if harm “legitimate commercial interests” Regulators shall not authorise restrictions if there are three-or-more users Applies to all users not just primary ones N-S route: 1 or 2 primary users on 80% of route but 1 or 2 users on only 20% E-W route: 65% of route covered whether primary users or all users Should in any case publish number of users and a range of availability if not actual figures 23 November 2007 GIE Annual Conference

Legislative Proposals of 19.09.2007 Existing transparency rules in Article 6 of Gas Regulation and annexed guidelines Proposal: delete three-or-more rule TSO to publish ex-ante and ex-post supply and demand information LNG and storage operators to publish contracted and available capacity and actual use TSOs and LNG and storage operators to keep relevant information for 5 years 23 November 2007 GIE Annual Conference

Other action Preparation of revised guidelines on transparency in current Gas Regulation to clarify: Technical and tariff information Capacity information Confidentiality rules including the three-or-more rule Review of transparency regarding derivatives and financial instruments by mid-2008 Clarify requirements under financial rules Evidence of market failure? Could pre- or post-trade transparency help? 23 November 2007 GIE Annual Conference

Conclusion Importance of transparency recognised Addressed in legislative package Guidelines being revised Further consideration given to trading transparency 23 November 2007 GIE Annual Conference