1. Johannes Mayer (E-Control), Chair ERGEG URB TF Karsten Bourwieg (Bundesnetzagentur), ERGEG URB TF Citizens’ Energy Forum, London, 29-30 September 2009 DSO as market facilitator

2. 2DSO as market facilitator, Second Citizens’ Energy Forum, London, 29-30 September 2009 DSO as market facilitator - preconditions Objective 2003: distribution networks as neutral marketplace for retail competition Requires: separate ownership or unbundling of integrated undertakings, its management and DSO information

3. 3DSO as market facilitator, Second Citizens’ Energy Forum, London, 29-30 September 2009 Effective Unbundling – ERGEG’s GGP on DSO Unbundling Public Consultation: 2007 with 38 responses Published: July 2008

4. 4DSO as market facilitator, Second Citizens’ Energy Forum, London, 29-30 September 2009 Where do we stand? Basis of ERGEG Evaluation Questionnaire related to ERGEG’s Guidelines of Good Practice on functional an informational unbundling for DSOs 2008 Participants: 21 NRAs NRAs’ self-assessment about DSO unbundling in the Member States No collection of specific data

5. 5DSO as market facilitator, Second Citizens’ Energy Forum, London, 29-30 September 2009 Where do we stand? ERGEG Evaluation There’s a lack of detailed regulation Companies are quite free in setting up ‘their’ unbundling regime Consumers don’t think ‘unbundling’ yet Consumers still expect ‘integrated behaviour’ Consumers find identical branding Consumer complaints in only 5 countries Other network users/competitors do not trust neutrality of integrated DSOs

6. 6DSO as market facilitator, Second Citizens’ Energy Forum, London, 29-30 September 2009 Where do we stand? ERGEG Evaluation Non-discrimination requires well- trained staff on DSO side Information and training for staff seems to be well elaborated Compliance programmes important tool Compliance programmes widely in place Content of the programme and the annual report to the regulator generally not defined

7. 7DSO as market facilitator, Second Citizens’ Energy Forum, London, 29-30 September 2009 Where do we stand? ERGEG Evaluation Shared Services:

8. 8DSO as market facilitator, Second Citizens’ Energy Forum, London, 29-30 September 2009 Where do we stand? ERGEG Evaluation Separation of information remains biggest challenge Regulators do not trust neutrality of integrated DSOs 8 NRAs (electricity) and 5 NRAs (gas) report on legal procedures on unbundling issues Operational problems addressed outside of unbundling procedures

9. 9DSO as market facilitator, Second Citizens’ Energy Forum, London, 29-30 September 2009 Outlook Retail Markets and Unbundling Retail markets need effective unbundling Indicators for preconditions for retail markets have to be assessed i.e. effective unbundling i.e. regulated end-user prices in many MS i.e. switching procedures i.e. competitive wholesale markets

10. 10DSO as market facilitator, Second Citizens’ Energy Forum, London, 29-30 September 2009 Outlook Retail Markets and Unbundling Objective 2009: distribution networks as market facilitator for “smart” retail markets Requires: What kind of unbundling? What kind of incentives?

11. 11DSO as market facilitator, Second Citizens’ Energy Forum, London, 29-30 September 2009 Thank you for your attention! www.energy-regulators.eu Mark your diary for the World Forum on Energy Regulation IV October 18-21, 2009 Athens, Greece www.worldforumiv.info