Does the Third Package provide the European TSO associations with the tools necessary to find solutions to the European energy challenge ? Nigel Sisman,

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Presentation transcript:

Does the Third Package provide the European TSO associations with the tools necessary to find solutions to the European energy challenge ? Nigel Sisman, GTE+ Senior Adviser Energinet.dk New Tasks New Tools conference, Copenhagen 12 th March 2008

Current state of play 27 countries > 40 transmission system operators (TSOs) Several hubs, some mature, some emergent Third Package – the third attempt to deliver a single European gas market

The Third Package Framework Commission Agency TSO body Consumers Shippers Traders Producers Need Clear roles and responsibilities Checks and balances Overcome barriers at 3 levels Legal Regulatory Contractual & Industrial

The TSOs role secure, reliable and efficient operation of the transmission networks which are the backbone of the gas system provision of the market place for interested stakeholders by bridging the gap between physical and contractual aspects of gas transmission (‘commodity-making principle‘) TSOs cannot ensure a properly functioning market however TSOs can provide the necessary foundation to enable a flourishing market

TSOs Third Package Responsibilities Tasks include, in particular, the adoption of: –an annual work programme –technical and market (network) codes in 11 areas –a 10-year network development plan every two years –annual winter supply outlooks –an annual report Consultation processes –To establish the annual workprogramme –To consider change proposals –To inform 10 Year Capacity Development Statement Provide capacity, access services, information to facilitate the market Robust Responsive Transparent consultation TSO role Network Codes to provide the foundation for the market Capacity Development Statement to inform the market Outputs

Agency To enhance regulatory co-ordination To support and endorse codes To monitor the implementation of the codes and assist compliance via NRAs Agency support and regulatory co-ordination essential to develop change

Commission role Directives and regulations –ensuring the policies are implemented Addressing legal inconsistencies –to enable implementation process Comitology –where ENTSOG technical and market codes are not implemented

TSOs progress towards formal TSO body ‘Shadow formal body‘ (GTE+) established by GTE members 3 Senior Advisers hired Market consultation on the work programme in the spring Key deliverables for this year are –Transparency platform –10-year network development plan –Winter outlook

Conclusions Third Package a good step –Only minor refinements necessary TSOs must –establish ENTSOG –develop robust consultation processes –involve all stakeholders The Agency must –offer opinions on ENTSOG work –make recommendations to implement –deal with regulatory, and assist with legal barriers Commission must –ensure Directives/Regulations implemented –assist address legal inconsistencies –resort to comitology if appropriate