1. TITRE ACER: Mission, Structure and Activities Alberto Pototschnig Director E-Control Energy Dialogue Vienna, 7 December 2011

2. Outline. ACER Establishment. Mission and Internal Governance. Main Tasks. 2011 Activities. 2012 Work Programme

3. ACER Establishment. ACER has been established as part of the new institutional framework of the Internal Energy Market defined by the Third Package. September 2010Set-up in Brussels. 1 February 2011Moved to Ljubljana. 3 March 2011Official Opening

4. ACER Official Opening

5. Outline. ACER Establishment. Mission and Internal Governance. Main Tasks. 2011 Activities. 2012 Work Programme

6. ACER Mission (Regulation (EC) No 713/2009) “The purpose of the Agency shall be to assist the [NRAs] in exercising, at Community level, the regulatory tasks performed in the Member States and, where necessary, to coordinate their action”. Article 1(2) Therefore, ACER. is NOT a European Energy Regulator. … but plays a CENTRAL ROLE in the new institutional framework introduced by the 3 rd Legislative Package on Energy

7. ACER – Relevant EU Legislation Third Energy Package Directives 2009/72/EC and 2009/73/EC and Regulations (EC) Nos 713/2009, 714/2009 and 715/2009 Regulation (EU) No 838/2010 (on the Inter-TSO Compensation Mechanism) ACER Regulation on Wholesale Energy Market Integrity and Transparency (REMIT) (adopted by the European Council on 10 October 2011) Proposed Regulation on guidelines for trans-European energy infrastructure (tabled by the European Commission on 19 October 2011; expected to enter into force by end-2011)

8. ACER Bodies. Administrative Board. Board of Regulators. Board of Appeal. Director

9. The Administrative Board (1). is composed of 9 members and 9 alternates: » 2 + 2 appointed by the European Parliament » 5 + 5 appointed by the European Council » 2 + 2 appointed by the European Commission » the Chairman of the Board of Regulators and the Director as non-voting observers. ensures that ACER carries out its mission and performs the tasks assigned to it in accordance with Regulation (EC) No. 713/2009. formally appoints the members of the Board of Regulators. appoints the members of the Board of Appeal. formally appoints the Director upon a favourable opinion by the Board of Regulators. exercises, in consultation with the Board of Regulators, disciplinary authority over the Director

10. The Administrative Board (2). adopts ACER’s Work Programme (by 30 September each year, after consulting the Commission and after having received approval by the Board of Regulators) and transmits it to the European Parliament, the Council and the Commission. adopts and, if necessary, revises a Multi-annual Programme. draws up the ACER’s implementing rules for giving effect to the Staff Regulations

11. Razvan Nicolescu, Romania Vice-Chair The Administrative Board (3) Piotr Grzegorz Wozniak, Poland Chair Appointed by the European Council Appointed by the European Parliament Appointed by the European Commission

12. The Board of Regulators (1). comprises: » one senior representative and one alternate per Member State from the current senior staff of NRAs » one non-voting representative of the Commission. provides Opinions to the Director on ACER’s opinions, recommendations and decisions that are considered for adoption. provides Guidance, within its field of competence, to the Director in the execution of his tasks. approves the Work Programme of the Agency for the coming year and present it by 1 September of each year for adoption by the Administrative Board

13. Walter Boltz, Austria Vice-Chair The Board of Regulators (2) Lord Mogg, UK Chair

14. The Board of Appeal (1). comprises: » 6 members and 6 alternates » selected from among current or former senior staff of the national regulatory authorities, competition authorities or other national or EU institutions with relevant experience in the energy sector. considers appeals lodged by any natural or legal person, including NRAs, against a decision by ACER ex art. 7, 8 and 9 of Reg. 713/2009: » which is addressed to that person, or » which, although in the form of a decision addressed to another person, is of direct and individual concern to that person

15. Herbert Ungerer, Germany Vice-Chair The Board of Appeal (2) Pippo Ranci Ortigosa, Italy Chair

16. The Director. represents and manages the Agency. implements the Work Programme. adopts and publishes opinions, recommendations and decisions that have received the favourable opinion of the Board of Regulators. prepares the draft Work Programme, the draft Budget and the draft Annual Report of the Agency. recruits and appoints staff of the Agency

17. ACER Internal Structure (Director + 51 staff members) Director Electricity Department Gas Department Administration Department NRA Cooperation TSO Cooperation Market Monitoring Framework Guidelines Market Monitoring NRA Cooperation TSO Cooperation Budget and Finance Human Resources IT Resources and Document Management Budget and Finance Press and Communication Internal Audit Legal Adviser NRA Coordination

18. Outline. ACER Establishment. Mission and Internal Governance. Main Tasks. 2011 Activities. 2012 Work Programme

19. ACER’s Current Activities (1) Types of acts which ACER can adopt Opinions and recommendations TSOs NRAs European Parliament European Council European Commission Individual decisions in specific cases (residual power)

20. Opinions on the 10-Year EU-wide Network Development Plans NRA Support and Coordination Decisions on Terms and Conditions for Access to/Operational Security of Cross-border Infrastructure Decisions on Exemptions Regional Coordination Framework Guidelines for Network Codes ACER Market Monitoring Access (incl. RES), Retail Prices and Consumers’ Rights Wholesale Trading (REMIT) ACER’s Current Activities (2)

21. FG and NC Characteristics Framework Guidelines (FG)Network Codes (NC) No clear definitions in the Third Package Based on the annual priorities set by the Commission Non-bindingAre made legally binding via Comitology Setting clear and objective principles for the network codes Must be in line with FG Shall contribute to non- discrimination, effective competition and the efficient functioning of the market Provide effective access to the TSO networks across borders; promote cooperation & coordination among TSOs; allow for national network rules and regional specificities

22. Areas for FG and NC NetworkCodesNetworkCodes ( a) network security and reliability rules (b) network connection rules (c) third-party access rules (d) data exchange and settlement rules (e) interoperability rules (f) operational procedures in an emergency (g) capacity-allocation and congestion-management rules (h) rules for trading related to technical and operational provision of network access services and system balancing (i) transparency rules (j) balancing rules (k) rules regarding harmonised transmission tariff structures (l) energy efficiency regarding electricity networks. Framework Guidelines entso

23. FG and NC: Basic Timeline Scoping FG NC Priority areas defined by the European Commission 6 months 12 months 3m Comitology EC invites ACER to develop FG EC invites ENTSO to develop NC entso EV ENSTO submits the NC to ACER for evaluation ACER recommends NC to EC for adoption

24. ACER Support to NRAs Promotion of Cooperation (even beyond the areas of ACER remit) Peer Review Interpretation of Guidelines Sharing of Best Practices Promotion of Cooperation (even beyond the areas of ACER remit) Specific Decisions

25. ACER Individual Decisions for cross-border infrastructure Decisions on Terms and Conditions for Access to and Operational Security of Cross-border Infrastructure Decisions on TPA/Unbundling Exemptions ACER decides if: ● The concerned NRAs fail to reach an agreement, or ● Jointly requested by the concerned NRAs

26. Outline. ACER Establishment. Mission and Internal Governance. Main Tasks. 2011 Activities. 2012 Work Programme

27. PUBLIC CONSULT. Recent activities: Electricity Sector MarAprMayJun Aug FG on Grid Connections PUBLIC CONSULT. Opinion on ENTSO-E Statutes, List of Members and Rules of Procedure T.C. FG on Capacity Allocation and Congestion Management in Electricity 2 May 5 Apr5 May FG on Balancing SCOPING 20 Jul3 Mar 29 Jul FG on System Operations 15 Jul 15 Sep Jul Sep Oct 2011 NovDec Jan Feb Mar 2012 PUBLIC CONSULT. 11 Apr 10 Jun 2 Dec Opinion on ENTSO-E 2012 Work Programme 2 Dec

28. PUBLIC CONSULT. Recent activities: Gas Sector Opinion on ENTSO-G Statutes, List of Members and Rules of Procedure 2 May 5 May SCOPING 3 Aug3 Mar 12 Apr12 Jun FG on Capacity Allocation Mechanisms for the European Gas Transmission Network FG on Gas Balancing in Transmission Systems FG on Interoperability Rules Opinion on ENTSO-G EU-wide Ten-Year Development Plan 16 Sept 18 Oct FG on Rules regarding Harmonised Transmission Tariff Structures SCOPING MarAprMayJun Aug Jul Sep Oct NovDec Jan Feb Mar 20112012 T.C. 5 Apr

29. Outline. ACER Establishment. Mission and Internal Governance. Main Tasks. 2011 Activities. 2012 Work Programme

30. ACER 2012 Work Programme (1) Areas of ActivityPlanned Activities Framework GuidelinesElectricity -Balancing (*) -Third Party Access Gas -Interoperability (*) -Harmonised Tariff Structure (*) -Data Exchange and Settlement Rules -Rules for Trading Reasoned Opinion on Network Codes Electricity -Grid Connections -Capacity Allocation and Congestion Management (Capacity Calculation, Day- ahead and Intraday) Gas -Capacity Allocation Mechanisms -Balancing

31. ACER 2012 Work Programme (2) Areas of ActivityPlanned Activities ITC Mechanism (Electricity) -Annual Report on implementation and management of the ITC Fund -Proposal to the Commission on the annual cross-border infrastructure compensation sum Monitoring-Internal Energy Market (Annual Report) -Regional Initiatives (Annual Status Review)

32. ACER 2012 Work Programme (3) Opinion on ENTSO-E’s EU-wide Ten-Year Network Development Plan Opinion on ENTSOs’ Work Programmes

33. REMIT: a new challenge Sector-specific, comprehensive monitoring framework for wholesale energy markets to detect and deter market abuse ACER “is best placed to carry out such monitoring as it has both a Union-wide view of electricity and gas markets, and the necessary expertise in the operation of electricity and gas markets and systems in the Union” (recital 17) Close cooperation and coordination between ACER and NRAs To promote confidence of consumers and other market participants in the integrity of electricity and gas markets

34. REMIT at a glance. Registration of Wholesale Energy Markets (WEM): participants with NRAs. Rules prohibiting abusive practices affecting WEM: » Trading based on inside information (obligation to publish inside information) » Market manipulation – actual or attempted. Definition of inside information, market manipulation and attempt to manipulate markets (updated by the Commission through “Delegated Acts”). Monitoring of WEM by ACER in cooperation with NRAs. Power of Investigation rests with NRAs. Enforcement of Prohibitions by NRAs

35. Time line of REMIT’s implementation Summer 2012 Spring 2011 Winter 2011 Summer 2013 Winter 2013/2014 ?? Autumn 2013 REMIT’s entry into force 20 days after publication in the OJ Prohibitions of insider dealing and market manipulation apply for market participants Obligation to publish inside information applies for market participants Implementing acts’ entry into force (after comitology procedure) ACER, in cooperation with NRAs, determines and publishes data format for registration of market participants 6 months ? Registration of energy trading firms applies 3 months Data collection and monitoring by ACER and NRAs 6 months NRA competences implemented into national law 18 months ?

36. Immediate obligations to notify (1). Market participants are immediately subject to:. Obligation to publish inside information (art.4). Obligation to notify ACER and competent NRAs in case of delayed publication of inside information (art. 3(4)(b) and 4(2)). Prohibition of market abuse (art. 3 and 5). Trading on inside information. Market manipulation. Attempted market manipulation

37. Immediate obligations to notify (2). Persons professionally arranging transactions are immediately subject to:. Obligation to establish effective arrangements to identify breaches (art. 15(2)). Obligation to notify NRAs – and NRAs to notify ACER where needed – in case of reasonable suspicion of breach (art. 15(1)). ACER to develop web forms for supporting in a secure and uniform way the two immediate obligations for notifications

38. Non-binding Guidance (1). Describes ACER’s understanding of the market abuse definitions of Art. 2 of REMIT. Does not provide legal interpretation. Addressed to NRAs with a view to establishing a common understanding on REMIT definitions (Art. 16). Published for ensuring the maximum transparency

39. Non-binding Guidance (2). A first edition of Guidance to be published by end of December. ACER will update and publish further editions of guidance in due course (on a yearly basis) according to ACER’s, NRAs’ and market participants’ experience

40. Thank you for your attention Thank you for your attention! www.acer.europa.eu