EUROPEAN COMMISSION Mark van Stiphout – DG TREN – C2 Internal market for electricity and gas Third Package Progress GIE conference 24-10-08.

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Presentation transcript:

EUROPEAN COMMISSION Mark van Stiphout – DG TREN – C2 Internal market for electricity and gas Third Package Progress GIE conference

| 2 Content of the presentation. Remember 19 September Update on legislative process. Discussions on the package » Unbundling » Agency » Comitology » Other issues The Parliament’s first reading The Energy Council conclusions. Timing

| 3 Legislative process. Council » Energy council conclusions of 6 June 2008 Confirmed by European Council of 20 June 2008 » Energy Council of 10 October Parliament » Plenary vote to conclude first reading Electricity Directive Electricity Regulation and Agency Regulation on 18 June 2008 Gas Directive and Gas Regulation on 9 July 2008

| 4 Unbundling - Council. Third option: Independent transmission operator. TSO remains part of integrated undertaking but detailed rules ensure independence of TSO

| 5 Unbundling - Parliament. Electricity: ownership unbundling is the only way » ISO and ITO are not a possibility. Gas: ownership unbundling and a type of independent transmission operator » Difference to ITO in the Council: Trustee To guarantee the value of the TSO for the VIU Appoints members of Supervisory Board that are not appointed by VIU Veto on decisions that affect value of the networks assets » ISO is deleted » Review clause of the new option includes the obligation to analyse a EU-TSO

| 6 Agency - Council. Relation between ENTSO and Agency is changed » Framework guidelines that define work for TSOs. Agency does not decide directly on Article 22 exemptions » Agency only decides when NRA‘s cannot agree within six months.

| 7 Agency - Parliament. More powers for the Agency » Framework guidelines that define ENTSO work » Agency shall consult in drafting process » Agency can adopt codes » 10-year network investment plan of ENTSO is approved and made binding by the Agency » Impose penalties on TSOs. Not in line with Meroni judgement on delegation of discretionary powers of the Commission

| 8 Guidelines and comitology - Council. Guidelines remain: » Certification » Cross-border regulatory cooperation » Record keeping » Article 22 exemptions. Guidelines deleted: » Public Service Obligations » DSO unbundling » Powers and duties of NRAs » Independence of TSOs » Retail markets

| 9 Guidelines and comitology - Parliament. Parliament » Delete all comitology in Directives » Possibility to make guidelines through comitology remains for: Network codes Change of existing guidelines (first adoption through codecision)

| 10 Other issues - Parliament. Special treatment of industrial grids. Negotiated TPA for LNG. Inclusion of criteria for negotiated TPA for storage. Three minus rule for storage and LNG. Balancing information for regulators only

| 11 Other issues - Council. Entry-exit tarification to be implemented within 2 years. Possibility for confidential treatment of data, under strict conditions and NRA approval, in case of a single storage user

| 12 Timing. Second reading of the Parliament will start at end of the year – deadline is three months. Council opinion on Parliament’s amendments – deadline is three months. Agreement in second reading !?

| 13 Thank you for your attention For more information and the adopted texts: Commission: Council: Parliament:

| 14 Unbundling - Council. Detailed rules concern: » TSO has all assets and resources » Supervisory Board appoints day-to-day management » Regulatory oversight of supervisory board » Cooling-off and warm-up periods for ITO management » Compliance officer » NRA can force investments » NRA can impose fines up to 10% of annual turnover » Revision clause. Certification is done by NRA – Commission’s opinion to be taken into account

| 15 Agency - Council. Changes to the organisation » Administrative Board: 5 MS representatives instead of 6 1 Commission representative instead of 3 » Regulatory Board: Regulatory board is stronger vis-à-vis Director More powers in appointment or dismissal of Director

| 16 Agency- Parliament. Organisation » Administrative board: Parliament, Council and Commission all have 2 members Parliament can dismiss members Reporting obligation to EP (ITRE) » Regulatory Board Decision making body in Agency Weakening powers of Director and Administrative Board