1. How will the 3rd Energy Package Impact GRI NW ?
David Halldearn
Energy Market Insights Limited
14 November 2008

2. Will the 3rd package help?
“Regulatory gap” at the borders between national regulatory systems is largely addressed
Essential for cross-border investments; system operation; market interactions
Codes (probably binding) will set cross border rules
National regulators should get the necessary tools to do the job
Duties of NRAs broadened to include European
ACER created to co-ordinate NRA actions
Possibility of binding Guidelines
TSOs will have EU level co-ordination bodies

3. What role will ACER have in Regional markets?
Regional Initiatives will probably move from ERGEG to ACER
Regional Initiative will remain central to achievement of single market
Legal responsibility to co-ordinate activities of NRAs
Commission could propose binding Guidelines for co-operation between NRAs
Dispute resolution
Exemption decisions where NRAs can’t agree
Co-ordination of regional and European regulatory policy
Could be made binding through Code modifications

4. Co-ordinating Change to Single Market
Framework guidelines and first set of codes will not achieve SEM
Task is simply too large, complex and costly
Modifications to codes will enable progress to SEM over time
Many interested parties can propose code changes with risk of divergent approaches
ACER will need to provide clear criteria for assessing code modifications against target of SEM
Regional activities will need to take account of these criteria to achieve convergence

5. Transition to a Single European Market
Wide regional and national differences
Single market
Convergence
Now
Future

6. Managing the Transition to a Single Market
Co-ordinated change
First steps towards SEM
First set of codes
Modifications to codes
Convergence towards SEM
Further code modifications
Achievement of SEM

7. Progress will be both bottom up and top down
European level
Region
Region
Region
Single Market
Regional level
Region
Region
Effective co-ordination at all levels will be essential

8. Bottom up Push for EU Policy
In reality progress across EU will be multi speed
There is no ‘blueprint’ for a single market – it has to evolve
Therefore, interactive nature of transition to single market gives influence to advanced regions
GRI NW has great influence:
60% EU gas market
Technically most advanced
Constituency of big player countries
Political involvement inevitable – but not yet fully integrated into GRI NW

9. Timetable ACER not operational before mid-2010 at the earliest
First Codes unlikely before 2012
Regional market development remains important in the interim
Sensible companies will not wait for 3rd package implementation
Further industry restructuring is likely and may impact on GRI NW

10. David Halldearn Energy Market Insights Limited david. emil@blueyonder
David Halldearn Energy Market Insights Limited
14 November 2008