1. Electricity Infrastructure Workshop Brussels, 13 February 2007 The framework for a Single European Electricity Market Mrs Asta Sihvonen-Punkka, CEER EWG Chair

2. 2 Overview of the ERGEG Response  The ERGEG response to Commission’s Communication ”An Energy Policy for Europe” (www.ergeg.org)www.ergeg.org  Five key issues  The European Grids and EU obligations on TSOs  European networks bodies  Regulatory oversight at national and EU level  Accountability  Effective unbundling

3. 3 A European Grid  The European Grid will need to be defined in law so that each participating TSO will know what is required of its organisation  A European Grid Code should specify the responsibilities of network companies in relation to the provision of a European electricity grid  It should include standards on the  planning of the grid  maintenance of the grid  operation of the grid  information exchange among the TSOs  Information control

4. 4 A European TSO body  The operation and development of the European Grid will depend on the activities of individual TSOs but the European standards will need to be developed between them  Since the collective aspects cannot be fulfilled individually and can only be fulfilled by national TSOs coming together as a group, there is a need for a European networks body  These bodies should be developed by placing new obligations to the EU members of the existing organisations to form ETSOplus (for gas GIEplus)

5. 5 The role of European Regulators  National level: Powers and independence of national regulators must be broadly harmonized  European level: Effective market oversight and duty to co-operate must be ensured  European-level regulation is needed for certain key EU-wide activities  the starting point should be existing structures = ERGEGplus  Duties on a European regulatory body in the form of an enhanced ERGEGplus, and appropriate powers, to oversee the collective obligations of TSOs

6. 6 Accountability and unbundling  Accountability  Requirements on ETSOplus to publish annual reports on the performance of the EU Grid  Requirements on ERGEGplus to be accountable to EU institutions for the fulfilment of its EU duties  Unbundling  For energy regulatory arrangements the preferred way would be full ownership unbundling

7. Thank you for your attention