1. 1 18th WORLD ENERGY CONFERENCE Round Table: The role of regulation in the liberalisation of energy markets Buenos Aires, 23 rd October 2001 Pedro María Meroño Vélez President of CNE-ESPAÑA President of ARIAE (Ibero-American Association of Energy Regulators)

2. 2 CONTENTS OF PRESENTATION Ibero-American Association of Energy Regulators Liberalisation processes. Justification and Viability Liberalisation processes in different regional contexts The role of independent regulators The context of Regulation, in the transition and the full introduction of liberalisation THE ROLE OF REGULATION IN THE LIBERALISATION OF ENERGY MARKETS 18th WORLD ENERGY CONFERENCE

3. 3 Ibero-American Association of Energy, ARIAE  Background, setting-up  Structure  Future, objectives  Organisation  Developments: The information exchange system. Training. Website: www.ariae.org THE ROLE OF REGULATION IN THE LIBERALISATION OF ENERGY MARKETS 18th WORLD ENERGY CONFERENCE WORLD ENERGY CONFERENCE

4. 4 Liberalisation processes. Justification and viability  The monopolistic organisation, as a starting point  Deficiencies in the monopolistic organisation  Liberalisation as a model in energy regulation Why liberalisation is desirable Lessons resulting from a wrong context and regulation in order to introduce a liberalisation model. The case of California. THE ROLE OF REGULATION IN THE LIBERALISATION OF ENERGY MARKETS 18th WORLD ENERGY CONFERENCE

5. 5 Liberalisation processes in different regional contexts  Europe The introduction of competition in the energy sector The institutionalisation of the process European Gas and Electricity Directives Harmonisation of national regulations The development of transmission and interconnection infrastructures The creation of a regional market  America The restructuring of the energy industry Privatisation and liberalisation of the sector Exchanges between national energy systems The institutionalisation of the process The creation of a regional market THE ROLE OF REGULATION IN THE LIBERALISATION OF ENERGY MARKETS 18th WORLD ENERGY CONFERENCE

6. 6 Performances of the Regulators in the sector  Independence  Neutrality, objectivity and transparency  Capacity, resources  Responsibility of the Regulator THE ROLE OF REGULATION IN THE LIBERALISATION OF ENERGY MARKETS 18th WORLD ENERGY CONFERENCE

7. 7 The context of Regulation  The change towards a scene of competitive markets. The transition processes Gradualness in the application of regulatory markets Transparency and objectivity of the process. The unbundling of activities Regulation of access to infrastructures Compensation of regulatory activities and quality of service To fix regulatory prices (tariffs and tolls) The guarantee of supply and planning of energy infrastructures Surveillance of the markets Business transactions: Mergers and takeovers THE ROLE OF REGULATION IN THE LIBERALISATION OF ENERGY MARKETS 18th WORLD ENERGY CONFERENCE

8. 8 The context of Regulation (continued)  Business transactions: Mergers and takeovers Effects on regulation Effects on liberalised and regulated activities Effects on system coordination and infrastructure management The processes of disinvestment and supervision Effects on other sectors of energy Effects on regulating measures in the process of change The surveillance of business practices in the process THE ROLE OF REGULATION IN THE LIBERALISATION OF ENERGY MARKETS 18th WORLD ENERGY CONFERENCE