1. ERGEG Advice Comitology Guidelines on Fundamental Electricity Data Transparency Florence Forum 13 December 2010 Bente Danielsen

2. 2XVIII Florence Forum, 10-11 June 2010 19 th Florence Forum, 13-14 December 2010 2 What is fundamental data? Historical and planning data of a technical or economic character having an impact on the IEM and price formation, that is related to 1.transmission network infrastructure; or 2.other infrastructure, including generation and consumption; or 3.any physical measure on transmission network infrastructure; or 4.any market-related transmission network calculation.

3. 3XVIII Florence Forum, 10-11 June 2010 19 th Florence Forum, 13-14 December 2010 3 Process for preparing advice The European Commission requested ERGEG give advice on comitology guidelines on fundamental electricity data transparency in January 2010 Wide involvement of stakeholders Joint working group with ENTSO-E (significant ENTSO-E input e.g. on definitions) 2 workshops organised jointly with ENTSO-E Bilateral and multilateral discussions with stakeholders, DG ENER, DG COMP Written public consultation with 33 responses ERGEG approval on 7 December 2010

4. 4XVIII Florence Forum, 10-11 June 2010 19 th Florence Forum, 13-14 December 2010 4 Problem identification Poor transparency has adverse effects on market competition and price formation as not all the market actors have access to the same information and an unlevel playing field is created Asymmetry of information that results from a lack of transparency also creates opportunities for market manipulation Poor transparency and asymmetry of information act as a barrier to entry and reduce trust in the price formation process and may result in lower liquidity.

5. 5XVIII Florence Forum, 10-11 June 2010 19 th Florence Forum, 13-14 December 2010 5 The drivers of the problem Existing legally binding rules on fundamental data transparency in electricity are not detailed enough has led to differing interpretations of the specific data items, time frames and timings of publication complicates both implementation by TSOs and the enforcement by regulators has led to differences in the level of transparency across the Member States

6. 6XVIII Florence Forum, 10-11 June 2010 19 th Florence Forum, 13-14 December 2010 6 Policy options Option 1: Continue with the present set up Congestion Management Guidelines Compliance monitoring and infringement procedures NRAs/Agency working through Regional Initiatives Option 2: Legally binding detailed European transparency requirements Detailed binding rules, definitions, time frames Central information platform to publish data NRAs ensuring compliance at national level The Agency overseeing the central information platform

7. 7XVIII Florence Forum, 10-11 June 2010 19 th Florence Forum, 13-14 December 2010 7 Information requirements Balancing mechanism  Rules, volumes, prices Balancing mechanism  Rules, volumes, prices LOAD  Forecast  Actual  Unavailability of consumption units LOAD  Forecast  Actual  Unavailability of consumption units TRANSMISSION  Available  Forecast  Offered  Actual use  Unavailability of transmission and interconnector assets TRANSMISSION  Available  Forecast  Offered  Actual use  Unavailability of transmission and interconnector assets GENERATION  Installed  Available  Forecast  Actual  Unavailability of generation units GENERATION  Installed  Available  Forecast  Actual  Unavailability of generation units

8. 8XVIII Florence Forum, 10-11 June 2010 19 th Florence Forum, 13-14 December 2010 8 Special issues Identification of the unavailability of Generation units Consumption units Interconnections and transmission grid Name, location, bidding area, estimated impact, reason, start and stop date to be provided Information shall be published as soon as possible and H+1 at the latest Information on nearly real-time (H+1) generation (unit- by-unit) for production units of 100 MW and above

9. 9XVIII Florence Forum, 10-11 June 2010 19 th Florence Forum, 13-14 December 2010 9 Central information platform A central information platform (CIP) shall be established for publishing the information required in the guidelines ENTSO-E is responsible for ensuring that the CIP complies with the requirements in these guidelines The guidelines do not preclude in any way the disclosure of the same information, parts of it or more information, on the websites of TSOs and other parties Agency has regulatory and supervisory tasks to approve the plan for the CIP in advance to annually review the efficiency and cost-effectiveness of the CIP based on the report sent by ENTSO-E

10. 10XVIII Florence Forum, 10-11 June 2010 19 th Florence Forum, 13-14 December 2010 10 Costs & benefits of the transparency proposition According to ENTSO-E’s preliminary estimate The setup cost of the CIP and TSO systems: 10 million euros (one time cost) Annual costs of running and maintaining the platform and providing data by TSOs: 15 million euros Additionally, the costs accrued to other providers of data Quantitative benefits are difficult to assess, however, it can be argued that better transparency lowers risk margin and in that way the price paid for electricity E.g. if the price decreased by 0,01% the customers could save ca. 10 million and with 1% decrease the saving would amount to 1 billion

11. 11XVIII Florence Forum, 10-11 June 2010 19 th Florence Forum, 13-14 December 2010 11 Thank you for your attention! www.energy-regulators.eu