1. Directorate General for Energy and Transport1 Ana Arana Antelo Head of Unit Electricty & Gas – European Commission/DG TREN GIE Annual Conference, 22.11.2007, Madrid Third Package How will it tackle infrastructure investment?

2. Directorate General for Energy and Transport2 3rd package – background  Starting point  Benchmarking reports and Green Paper  Progress report, Sector Inquiry and Strategic Review of 10 January 2007  Conclusion: Urgent need to strengthen competition and complete internal energy market  Main shortcomings  Vertical integration of companies and high degree of market concentration  Lack of market integration at EU level: lack of TSO cooperation – regulatory gap – lack of interconnection  Lack of transparency  Different powers and competences of national regulators

3. Directorate General for Energy and Transport3 3rd package: main measures Main areas  Unbundling of networks  Cooperation of network operators  National regulators  EU Agency for Regulatory Cooperation  Transparency  Solidarity cooperation  Consumer protection

4. Directorate General for Energy and Transport4 3rd package – focus investments (1) HOW DOES THE 3rd PACKAGE TACKLE INVESTMENTS? 1.Transmission – ownership unbundling  Supply interests of integrated companies are in conflict of interest with provision of sufficient transport capacities  3rd package: ownership unbundling to ensure independence of network operators; alternatively ISO having a say on investment decision 2.3rd country investments  Without prejudice to the international obligations, transmission systems or TSOs shall not be controlled by persons from 3rd countries  Reversal of proof for ownership unbundling  Create a level playing field for EU and non EU investors

5. Directorate General for Energy and Transport5 3rd package – focus investments (1) HOW DOES THE 3rd PACKAGE TACKLE INVESTMENTS? 3.TSO cooperation on EU level  Responsible for coordinate the planning of network investments  monitor the development of transmission network capacities 4.National regulators  Current varying policy objectives and responsibilities of regulators  especially problematic in the field of new investments  3rd package: enhancing statutory duties and powers  review investment plans of national TSOs

6. Directorate General for Energy and Transport6 3rd package – focus investments (1) HOW DOES THE 3rd PACKAGE TACKLE INVESTMENTS? 5.Agency  complement the regulatory tasks performed at the national level European – close “regulatory gap”  decision making powers for specific cross-border issues  eg "Article 22" exemption requests for infrastructure projects involving more than one Member State

7. Directorate General for Energy and Transport7 3rd package – focus investments (1) HOW DOES THE 3rd PACKAGE TACKLE INVESTMENTS? 6.Storage  Currently suppliers have to contact their competitors to contract their storage need  does not enhance market confidence, serious barrier for new entrants  3rd package: legal and functional unbundling of storage system operators to enhance effective access to storage  ERGEG monitoring report on compliance with Guidelines of Good Practice for Storage (Dec 2006) showed that the level of storage capacity available to TPA is unclear  3rd package: Member States define and make public criteria when and how third party access to storage applies

8. Directorate General for Energy and Transport8 Summary

9. Directorate General for Energy and Transport9 TEN-E policy  TEN-E policy has gained importance  Still little money available, but:  Focus on important and mature projects instead of a long "wish-list"  Co-ordinators nominated for key projects (Nabucco)  Obligations for MS to report on progress and to coordinate  Future of TEN-E policy?  Tackling the difficulties to get permits for the projects through the Regional Initiatives  Close link with the European investment planning by TSOs  More money

10. Directorate General for Energy and Transport10 Conclusions  Third package has very important elements regarding invesments  Ownership unbundling  TSO-cooperation  National regulators’ and agency’s role regarding investments  Third package will support TEN-E policy and vice-versa