ACER: A new Agency in a new EU landscape
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1 ACER: A new Agency in a new EU landscape Alberto Pototschnig Director GIE Annual Conference Edinburgh, 24 June 2011
2 Towards the Single Energy Market First Package Harmonisation Dir 96/92/EC Dir 98/30/EC Second Package Harmonisation and Market Integration Dir 2003/54/EC Reg 1228/2003 Dir 2005/55/EC Reg 1775/2005 Third Package EU-wide Institutional & Regul. Framework Dir 2009/72/EC Reg 714/2009 Dir 2009/73/EC Reg 715/2009 Reg 713/
3 Lessons from the Implementation of the Second Energy Package.Vertical integration and horizontal concentration.insufficient EU-wide market integration.lack of TSO Cooperation.Regulatory gap.insufficient transparency.nra powers and competences vary 3
4 The Third Energy Package at a Glance.EU-wide Network Development Plans (nonbinding).eu-wide binding rules (Network Codes).Greater separation of Transmission and System Operation activities.stronger and more independent NRAs (with greater EU focus).eu-wide cooperation: ACER and ENTSOs 4
5 The new Governance of the IEM European Commission ACER ENTSO NRA NRA NRA NRA TSO TSO ISO ITO 5
6 ACER s Mission ACER is NOT a European Energy Regulator!.Regulatory powers are still in the hands of the National Regulatory Authorities (NRAs).In fact, the 3 rd package has reinforced the role and powers of the NRAs.ACER only has residual regulatory powers The purpose of the Agency shall be to assist the [NRAs] in exercising, at Community level, the regulatory tasks performed in the Member States and, where necessary, to coordinate their action. Article 1(2), Regulation (EC) No. 713/2009 6
7 ACER s Activities Types of acts which ACER can adopt TSOs Opinions and recommendations NRAs EP Council Commission Individual decisions in specific cases (residual power) 7
8 ACER s Main Areas of Activities ACER Opinions on the 10-Year EU-wide Network Development Plans Framework Guidelines for Network Codes Decisions on Terms and Conditions for Access to and Operational Security of Cross-border Infrastructure Decisions on TPA Exemptions NRA Support Market Monitoring 8
9 Network Development Plans (1) EU-wide 10-year NDP.Builds on:.national and regional investment plans.ten-e guidelines.merchant projects.identifies investment gaps.shall contribute to non-discrimination, effective competition and the efficient functioning of the market.shall ensure a sufficient level of cross-border interconnection open to third-party access National 10-year NDP (for ISOs and ITOs).Indicates main transmission infrastructures to be developed.timeframe for investments.reasonable assumptions on generation, supply, consumption and cross-border exchanges 9
10 At EU Level Network Development Plans (2) ENTSO adopts, every two years, a draft non-binding EU-wide 10YNDP ACER provides an opinion on the draft EU-wide 10YNDP ACER issues recommendations to ENTSO or COM if the draft EU-wide 10YNDP does not meet IEM criteria ISOs and ITOs submit a 10YNDP to the NRA NRA consults on the 10YNDP NRA assesses if the 10YNDP is consistent with the C-w 10YNDP. If in doubt, NRA consults ACER ACER provides an opinion on the 10YNDP At National Level 10
11 Developing Framework Guidelines and Network Codes EC defines Priority Areas ACER develops Framework Guidelines (FG) and submits them to the Commission ENTSO develops Network Codes (NC) ACER checks compliance of NC with FG ACER recommends NC to EC for adoption EC submits NC to Comitology EC adopts NC which becomes binding 11 11
12 Framework Guidelines and Network Codes Framework Guidelines N e t w o r k C o d e s entso (a) network security and reliability rules (b) network connection rules (c) third-party access rules (d) data exchange and settlement rules (e) interoperability rules (f) operational procedures in an emergency (g) capacity-allocation and congestion-management rules (h) rules for trading related to technical and operational provision of network access services and system balancing (i) transparency rules (j) balancing rules (k) rules regarding harmonised transmission tariff structures (l) energy efficiency regarding electricity networks. 12
13 ACER Support to NRAs Promotion of Cooperation (even beyond the areas of ACER remit) Sharing of Best Practices Interpretation of Guidelines Promotion of Cooperation (even beyond the areas of ACER remit) Peer Review Specific Decisions 13
14 ACER Individual Decisions for cross-border infrastructure Decisions on Terms and Conditions for Access to and Operational Security of Cross-border Infrastructure Decisions on TPA/Unbundling Exemptions ACER decides if: The concerned NRAs fail to reach an agreement, or Jointly requested by the concerned NRAs 14 14
15 General Principles of ACER s Action: Consultations.In carrying out its tasks, in particular in the process of developing framework guidelines and in the process of proposing amendments of network codes, ACER shall consult extensively and at an early stage with market participants, transmission system operators, consumers, endusers and, where relevant, competition authorities, without prejudice to their respective competence, in an open and transparent manner, in particular when its tasks concern transmission system operators 15
16 General Principles of ACER s Action: Transparency.ACER shall ensure that the public and any interested parties are, where appropriate, given objective, reliable and easily accessible information, in particular with regard to the results of its work.all documents and minutes of consultation meetings conducted during the development of framework guidelines or during the amendment of network codes shall be made public.before adopting framework guidelines or proposing amendments to network codes, ACER shall indicate how the observations received during the consultation have been taken into account and shall provide reasons where those observations have not been followed.acer shall make public, on its own website, at least the agenda, the background documents and, where appropriate, the minutes of the meetings of the Administrative Board, of the Board of Regulators and of the Board of Appeal. 16
17 ACER Work Programme for 2011.Opinion on ENTSO Statutes, List of members and Rules of Procedures.Opinion on ENTSO Work Programme.Framework Guidelines.Electricity.Capacity allocation and congestion management.grid connection. System Operation.Balancing.Gas..Capacity allocation mechanisms Balancing rules.harmonised transmission tariff structures (*).Interoperability.ITC Compensation.Monitoring of the Internal Market 17
18 The recent past and immediate future (Activities for the gas sector) March April May June July August FG on Capacity Allocation Mechanisms for the European Gas Transmission Network PUBLIC CONSULTATION WS 7 Mar Opinion on ENTSOG Statutes, List of Members and Rules of Procedure T.C. 5 Apr 2 May 5 May FG on Gas Balancing in Transmission Systems PUBLIC CONSULTATION WS 18 May 12 Jun FG on Interoperability Rules PUBLIC CONSULTATION 18
19 Thank you for your attention 19
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