1. European commission DG Energy and transport
“3rd liberalisation package” ERI CEE SG Meeting 7.November 2007
Matti Supponen Electricity and gas unit

2. EU energy policy in construction
Under preparation:
Climate change policy with emissions trading
Renewable targets and support mechanisms
Energy market package

3. North sea depleted, nuclear?
Background
North sea depleted, nuclear?
Bottlenecks
Price regulation
Long term contracts
Big four
Suez
Reform in process €
EdF
Enel
Lack of capacity
Market concept
not implemented
Not gas for everybody

4. ETSO Generation adequacy forecast (UCTE, Nordel, UK, Ireland)

5. Cross-border flows

6. Ownership unbundling

7. Share of congestion revenue reinvested in interconnection
900
800
700
600
500
400
300
200
100
Ownership unbundled TSOs
Vertically integrated TSOs
Share of reinvested congestion revenue
33.3%
16.8%
387
129
104
623
Congestion revenue (2001-6/2005)
It should be noted that these results need to be interpreted with caution because, firstly, interconnector investment is influenced by a number of factors and not only by the unbundling, secondly, investment planning and implementation takes some time and, thirdly, situations in which an ownership unbundled TSO at one side of the border faces an integrated TSO at the other side of the border can be an obstacle to investments. This being said, these caveats apply to all TSOs in an equal manner and should not systematically influence the above findings.
Interconnector investment
Source: Energy sector inquiry

8. TSO co-operation

9. TSO co-operation Common tasks: Organisation:
Draft technical and market codes
Operate the network
Prepare 10-year investment plan
Co-ordinate research
Organisation:
ENTSO

10. Congestion management methods in 2008
Use of implicit auction
Explicit auction only PX
No congestion
in the region
Pool
Pool PX PX PX
Power exchange
with implicit
auctioning AO PX PX PX PX
AO? AO AO PX PX
Auction office PX PX
Special features PX
AO? PX PX
Pool

11. Omistuksellinen eriyttäminen

12. Regulators

13. Regulators More powers Co-operation Selectively new powers
Single authority
Co-operation
European Energy Agency

14. European Energy Agency

15. European Energy Agency
Tasks
Individual decisions on issues provided for in the EU legislation
Monitoring the market and the co-operation between TSOs
Advice the Commission
Organisation
About 50 permanent staff
Regulatory board
Location ?

16. Summary

17. Summary

18. Market information

19. Market information Objective: Current legislation
Better access to market for small players
Current legislation
For example load, network and production capacity data already requested but badly respected
Transparency for OTC-trading
Record keeping
Possibility for authorities to investigate for example market manipulation

20. Retail market

21. Retail market Opening: Content
Legislation until now concentrated on wholesale markets
DSO unbundling and consumer protection already on board
Content
Harmonisation
Objective at least regional retail markets
“Retail forum” á la Florence and Madrid
Smart metering

22. Regional energy markets in the EU
Moderately concentrated
Highly concentrated
Very highly concentrated
congestion

23. Thank you for your attention
End of the story
Thank you for your attention