1. Introduction FUI SG Conference – Dublin 16 June 2010 Martin Crouch Partner – European Strategy

2. 2 Overview EU energy policy: priorities and legislation The “Third Package”: key elements ACER: the evolving role of the European Regulators Regional Initiatives: developing regional markets and implementing practical solutions

3. 3 PART 1 – SOME CONTEXT

4. 4 Competitive markets Security of Supply Sustainability Q) How to achieve “security, sustainability + competitiveness”? Single European Electricity Market EU POLICY PRIORITIES

5. 5 Already in place (examples) –2 nd package (still being implemented) –First renewables directive and ETS phases 1 and 2 –Energy services directive –Congestion management guidelines Adopted but not yet implemented –3 rd package –Green package –Inter-TSO Compensation Expected –Energy Infrastructure Package –Energy Market integrity legislation –Transparency Guidelines DG COMP and court cases LEGISLATION

6. 6 OVERALL TIMETABLE Sep 2009 3 rd Package Adopted Mar 2011 Agency operational National implementation 2012? First binding network codes

7. 7 PART 2 – ACER “EMPOWERING REGULATORS”

8. 8 ACER’S ORGANISATIONAL STRUCTURE Director Board of Regulators (BoR) Administrative Board (AB) Board of Appeals (BA) Responsible for budget Needs to give a favourable opinion to adopt opinions or decisions Head of Gas UnitHead of Electricity Unit xxx Decides on appeals of legally-binding decisions Legal, Finance, HR, etc… Budget: € 8-9 M Staff: 40-50

9. 9 ESTABLISHMENT OF THE AGENCY Appoint Director April/May 10March 11 Agency becomes operational Dec 09 Decision on location Staff recruitment Welcome to Ljubljana… Remainder 2010

10. 10 Areas for codes cf. Article 8 (6) (a) – (l) of the Regulation (EC) 714/2009 Framework Guidelines cf. EU Commission Presentation of the 3rd Package at the XVI Florence Forum ( http://ec.europa.eu/energy/gas_electricity/doc/forum_florence_electricity/meeting_016.zip ) http://ec.europa.eu/energy/gas_electricity/doc/forum_florence_electricity/meeting_016.zip System Operation FG Connection FG European Tariff FG Market Information FG Balancing FG Wholesale Market FG LEGEND: Network codes

11. 11 OTHER FUNCTIONS Resolving cross-border disputes (includes exemption) –Six month period to produce a final or interim decision “Peer Review” of NRA decisions –Commission can request ACER to peer review any NRA decision –Check compliance with European legislation –Four months for Regulator to comply

12. 12 PART 3 – REGIONAL INITIATIVES

13. 13 Tri-lateral market coupling and CWE Nordpool and EMCC DEVELOPING REGIONAL MARKETS

14. 14