ACER’s view on the future role of the Gas Regional Initiative Dennis Hesseling Head of the Gas Department, ACER 11 th Stakeholders group meeting of GRI NW Stockholm, 28 November 2013

11 th SG meeting of GRI NW – Stockholm, 28 November Background. ACER’s review of regional activities. ACER’s vision » General principles for regional activities » GRI priorities and concrete actions. Coordination of regional activities » With NRAs and within ACER » Stakeholders’ involvement. Way forward Outline

11 th SG meeting of GRI NW – Stockholm, 28 November 2013 Review of regional activities: the background. Coordination of regional activities by ACER (ERI and GRI) since its creation in March Informal evaluation of ACER performance in 2012 (‘Hilbrecht report’). Evaluation by EC of ACER activities in 2013, three years after the start of the Agency. Review of regional arrangements carried out in the framework of the general review of ACER activities. Discussions held at ACER BoR level on how to best streamline regional arrangements, with a double objective: » Simplify the existing multiplicity of regional groups » Identify the main priorities for GRI and ways to improve internal coordination of relevant groups within ACER Background

11 th SG meeting of GRI NW – Stockholm, 28 November 2013 Why a (limited) review of the GRI by ACER?. After the first two years of existence of ACER, it is necessary to assess: » Whether the GRI priorities are the right ones, taking into account the current regulatory context » Which regional projects and activities are contributing most to achieving the IEM » Which activities are best undertaken at regional level, which at national level and which at EU level » How coordination (internally in ACER, with NRAs and with stakeholders) can be optimised. The results of this thinking are presented in the next slides. These are provisional principles, no final decision yet – your feedback is still (always) welcome! ACER’s review of regional activities

11 th SG meeting of GRI NW – Stockholm, 28 November 2013 A reference: ERI At the end of 2011, ERI started adopting a new approach:. New project-oriented approach, with designated project lead regulators. Focus on the implementation of the CACM target models, with 4 key priority projects identified: » Market coupling (led by BNetzA and AEEG) » Intraday (led by OFGEM) » Long term transmission rights (led by CRE and EI) » Capacity calculation (led by CREG and e-Control). Development of cross-regional roadmaps with key goals and milestones. Geographical gatherings adapted to each project. Strong stakeholders’ involvement via AESAG and regional consultations ACER’s review of regional activities

11 th SG meeting of GRI NW – Stockholm, 28 November 2013 Main principles of ACER’s vision (1) General principles for regional activities. Keep a similar structure in Electricity and Gas (ERI and GRI). Focus on the early implementation of Network Codes. Adopt a project-oriented approach and set up specific processes for NC early implementation where necessary. Geographical configuration of groups adapted to the scope of pilot projects for NC early implementation (it may span across different regions) ACER’s vision for regional activities

11 th SG meeting of GRI NW – Stockholm, 28 November 2013 Main principles of ACER’s vision (2) GRI priorities and concrete actions. Promote and facilitate the early implementation of Network Codes by: » Identifying potential pilot projects at regional level » Setting up a specific process for facilitating their implementation (in cooperation with ENTSOG) with involvement of NRAs, TSOs, EC & stakeholders » Define together with ENTSOG the most appropriate working structures » First positive experience: CAM (CAM Roadmap). Keep focus on market integration and on projects that can contribute the most to the creation of the IEM: » Implementation of the Gas Target Model (ongoing projects for the creation of trading regions / integrated markets in the three regions). Preserve value of GRI as a regional forum for exchange of experience, information sharing and discussion of topics of regional interest ACER’s vision: GRI

11 th SG meeting of GRI NW – Stockholm, 28 November 2013 Coordination of regional activities With NRAs and within ACER. Main principle: avoid overlapping work and duplication of efforts. Optimise resources and take advantage of expertise from different working groups in the FG-NC development and implementation process. ERI, GRI Coordination groups chaired by Heads of Electricity resp. Gas. Streamline cooperation between GRI and AGWG: » AGWG focused on FG drafting, NC review and subsequent NC amendments » GRI group focused on promoting early implementation Stakeholders’ involvement. Participation of stakeholders is strongly encouraged and welcome in: » Stakeholders’ groups in the three gas regions » Stakeholders’ groups for early implementation of NCs (e.g. CAM) Coordination of regional activities

11 th SG meeting of GRI NW – Stockholm, 28 November 2013 The way forward for GRI: 2014 and beyond. Continue promoting the early implementation of CAM NC (in cooperation with ENTSOG). Seek to identify potential early implementation opportunities in other areas (e.g. balancing, interoperability). Continue implementing projects and activities at regional level until end 2014, according to Work Plans Reinforce focus on projects for market integration (implementation of the Gas Target Model). Discontinue work on infrastructures (dealt with in other dedicated working groups) Way forward

11 th SG meeting of GRI NW – Stockholm, 28 November 2013 Thank you for your attention Thank you for your attention!