ENTSOG’s view on next steps for regional co-operation Nigel Sisman Senior Adviser Stakeholder Group, GRI NW, Brussels, 26 Nov 2010

Regional Cooperation Challenge remains that formal governance and binding rules only occur at European & national levels 2 Third package envisages regional cooperation of and lead by ENTSOG/ TSOs Member States ACER/ Regulators Regional co-operation – conceptual framework

Third Package Rules Development process European rules –the primary aspiration –scope for regional specificities Regional activities –to fit with European approaches –scope to accelerate progress –co-ordination and coherence essential 3 Priority setting Framework Guidelines Network Codes Comitology Process Regional co-operation – conceptual framework

4 4 Types of Regional Co-operation 1. Implementations Specific Regional concerns should be checked for consistency and coherence with European aspirations 2. Trial approaches European driven 3. Specific regional concerns 4. TSO business driven Locally driven

European 3 Year Plan Madrid XVIII considered the 3 year plan Priorities Capacity Balancing Tariffs plus development of European gas market target model 5 Commission’s Three Year Priority Plan Challenge is what else should be done on a regional basis to promote progress? Focus has moved from regional to European work

GRI European developments A vision for regional / European activities Voluntary arrangements Alignment and focus deliver success GRI NW progress slowing 6 Second package world March Focus on European process Regional work of all types will arise Network code rules focus for 2011/2012 Regional co-operation New regional approach From 3 Year Plan or from ACER / ENTSOG processes Project lead activities? New regional Forum for communication? Third package world

ENTSOG regional activity plan To deliver 2011 regional network development plans To participate in current regional initiative where progress can be realised To identify projects for regional work from European processes To work with Commission / ACER via Planning and Monitoring Group to define top-down regional projects and governance arrangements 7

8 European processes must be given a chance; regional projects will follow Roadmap to 2015 Voluntary early implementation to start, where sufficient stability of draft NCs consistent with national law enabling regulatory conditions Framework Guideline Network Code Comitology Formal Implementation ACER Opinion and Commission decision Areas where stability is needed Capacity Allocation Balancing Tariff Interoperability

Conclusions Delivery of progress needs to be consistent with European 3 Year plan Identify specific projects for regional activity on a top-down basis ACER and ENTSOG opportunity to contribute their projects Future regional co-operation should focus on : Leaving room for flexibility/communication to cover geographical and relevant actor considerations Enabling the implementation of codes Ensuring efficiency in the deployment of resources Need to define new Third Package co-ordination structure Essential to have shared leadership and delivery responsibililty across Member States, ACER and ENTSOG 9