1. Mark van Stiphout – DG TREN – C2 Internal market for electricity and gas The role of TSOs in the third package EUROPEAN COMMISSION GIE conference 7 May 2009

2. | 2 GIE conference – 7 May 2009 Structure of the presentation. Main topics of the 3rd package. Timing of implementation. ENTSO and its tasks. Agency and its competences. Process to develop codes. 10-year network development plan

3. | 3 GIE conference – 7 May 2009 3rd package: main measures. Effective unbundling of networks. EU Regulatory Agency. Cooperation of network operators (ENTSO). Stronger powers for national regulators. Transparency. Retail market & consumer protection. Third country clause. Level playing field

4. | 4 GIE conference – 7 May 2009 Third Package : Implementation. Adoption by Council in Summer 2009. Agency operational in 2011. ENTSO statutes to be provided to the Agency and the Commission18 months after entry into force of the Regulation. Opinion of the Commission and the Agency. Formal establishment of ENTSO within 2 & 3 & 2 Months » Starting to prepare codes and guidelines in practice

5. | 5 GIE conference – 7 May 2009 TSO co-operation in the third package, tasks. Annual work programme and annual report. Network codes » Monitoring of implementation of codes. 10-year network development plan and supply adequacy outlook » every two years. Summer and winter supply outlooks. Network operational tools. Co-ordination of research. Recommendations on technical cooperation between Community and third-country TSOs. Regional co-operation

6. | 6 GIE conference – 7 May 2009 ACER competences I. Advisory role of ACER On its own initiative or upon request, ACER will give opinions and recommendations to EU institutions on all issues falling within ACER’s competence.. Tasks in relation to TSOs » Involvement in preparation of draft statutes, list of members and draft rules of procedure of the ENTSO. » Involvement in preparation of network codes. » Monitoring of ENTSOs regarding fulfilment of their tasks, in particular implementation of network codes, implementation of interconnectors and network development plans.

7. | 7 GIE conference – 7 May 2009 ACER competences II. Tasks in relation to NRAs » ACER will replace ERGEG and be the platform for cooperation of NRAs. » Decision-making on cross-border infrastructure, including exemption decisions, if NRAs do not agree » Upon request, check of compliance of NRA decisions with EC energy rules.. Plenty of monitoring and reporting tasks

8. | 8 GIE conference – 7 May 2009 Organisation of ACER. Administrative Board » Unique composition: 9 members, 5 appointed by Council, 2 by EP and 2 by Cion » Responsible for governance of ACER (Budget, formal appointments, Work Program…). Board of Regulators (BoR) » Composed of senior representatives from NRAs » BoR decides on the substance, gives guidance to Director. Director. Board of Appeal

9. | 9 GIE conference – 7 May 2009 Practical info Budget & Staff: About 40-50 people. Annual budget around €6-7 million. ACER will as regards resources depend on work and know- how contributions from NRAs. Seat: Decision expected under CZ or SW presidency. So far, candidates are RO, SK, SL and EL. Director: Selection procedure needs to start in autumn 2009 at the latest.

10. | 10 GIE conference – 7 May 2009 Network codes 1.network security and reliability rules; 2.network connection rules; 3.third party access rules; 4.data exchange and settlement rules; 5.interoperability rules; 6.operational procedures in an emergency; 7.capacity allocation and congestion management rules; 8.rules for trading related to technical and operational provision of network access services and system balancing; 9.transparency rules; 10.balancing rules including network related rules on nominations procedure, rules for imbalance charges and rules for operational balancing between TSOs’ systems; 11.rules regarding harmonised transmission tariff structures; 12.energy efficiency regarding gas networks.

11. | 11 GIE conference – 7 May 2009 Network codes 6 months (2 months consultation) 12 months 3 months (opinion of the Agency)

12. | 12 GIE conference – 7 May 2009 10-year Network Development Plan. Non-binding. Input from national plan. Not a compilation of national plans. Includes generation adequacy outlook. ENTSO is thinking about a scenario approach. Agency gives an opinion. ENTSO and Agency monitor the implementation. Financing of investments: only national?