International Series on Public Policy

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1 International Series on Public Policy Series Editors B. Guy Peters Pittsburgh University, Pittsburgh, USA Philippe Zittoun Research Professor of Political Science, LET-ENTPE, University of Lyon, Lyon, France

2 The International Series on Public Policy - the official series of International Public Policy Association, which organizes the International Conference on Public Policy - identifies major contributions to the field of public policy, dealing with analytical and substantive policy and governance issues across a variety of academic disciplines. A comparative and interdisciplinary venture, it examines questions of policy process and analysis, policymaking and implementation, policy instruments, policy change & reforms, politics and policy, encompassing a range of approaches, theoretical, methodological, and/or empirical. Relevant across the various fields of political science, sociology, anthropology, geography, history, and economics, this cutting edge series welcomes contributions from academics from across disciplines and career stages, and constitutes a unique resource for public policy scholars and those teaching public policy worldwide. More information about this series at

3 Nicole Herweg European Union Policy-Making The Regulatory Shift in Natural Gas Market Policy

4 Nicole Herweg Institute of Political Science University of Heidelberg Heidelberg, Germany International Series on Public Policy ISBN ISBN (ebook) DOI / Library of Congress Control Number: The Editor(s) (if applicable) and The Author(s) 2017 This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. Cover image Olena Bogadereva / Alamy Stock Vector Printed on acid-free paper This Palgrave Macmillan imprint is published by Springer Nature The registered company is Springer International Publishing AG The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland

5 To my family thank you for being there and for being the way you are.

6 ACKNOWLEDGMENTS This book would not have evolved into its present form without the support and input from colleagues and reviewers. First of all, my grateful thanks go to Reimut Zohlnh ofer, my doctoral supervisor, whose advice and never-wavering encouragement have substantially contributed to me completing this book. Furthermore, I was blessed with the opportunity to discuss my research at different stages at workshops and panels dedicated to the multiple streams framework in the last three years. I am very thankful for the many insightful and thought-provoking comments and suggestions I received on these occasions. From these scientific exchanges resulted research projects and collaborations, which had a strong impact on my understanding of the multiple streams framework and, consequently, on this book. In this regard, I am particularly grateful to Nikolaos Zahariadis, Michael D. Jones, once again, Reimut Zohlnh ofer, Jale Tosun, and Christian Huss. I also thank my colleagues at the Institute of Political Science at the University of Heidelberg, Germany, for their constant encouragement and support, above all Kathrin Dümig and Fabian Engler. Last but not least, I would like to thank Jemima Warren for her guidance and very pleasant cooperation, James Farrell for language editing, and Svenja Bauer-Blaschkowski and Philipp Mai for assistance with the manuscript. Any shortcomings in this book remain my sole responsibility. Heidelberg, August 2016 Nicole Herweg vii

7 CONTENTS 1 Introduction Empirical Research Questions Research Design, Method, and Contribution to the Literature The Structure of the Book 13 References 17 2 Theoretical Approach to the Policy Process: The Multiple Streams Framework The Basis: Kingdon s Multiple Streams Framework The Concept of Organized Anarchies A Process-Oriented Perspective on Policy-Making Situations Coupling of the Streams and Agenda Change Agenda Change Enabling Factors Extension I: Explaining the Policy Decision State of the Art A Modified Multiple Streams Framework Extension II: Explaining the EU Policy Process The EU s Problem Stream The EU s Political Stream The EU s Policy Stream 49 ix

8 x CONTENTS 2.4 Bringing the Threads Together: Analyzing the EU Policy Process by Applying the Multiple Streams Framework Agenda Change The First Necessary Condition: Stream Ripeness The Second Necessary Condition: An Agenda Window Opens The Third Necessary Condition: A Policy-Entrepreneur Couples the Streams Policy Change 57 References 65 3 The European Natural Gas Market and Its Regulation Characteristics of the (European) Natural Gas Market Regulatory Requirements Introduction of TPA to Networks and Infrastructure Unbundling Vertically Integrated Companies Effective Regulatory Oversight Regulatory Output: The Gas Directives Provisions 79 References 88 4 The First Gas Directive Process Agenda Change Problem Stream Political Stream Policy Stream Agenda Window and Coupling Events That Held the Agenda Window Open Policy-Entrepreneur s Coupling Activities Interim Conclusion Policy Change The First Decision Window and Coupling: A Case of Deadlock 115

9 CONTENTS xi The Second Decision Window and Coupling: A Spillover from the Electricity Directive Interim Conclusion 130 References The Second Gas Directive Process Agenda Change Problem Stream Political Stream Policy Stream Agenda Window and Coupling The Convergence of the Political Stream and the Problem Stream The Missing Link: Coupling the Policy Stream to the Converged Problem and the Political Stream Interim Conclusion Policy Change Length of Decision Coupling Political Entrepreneurs Coupling Strategies Market Opening Unbundling Requirements Regulatory Oversight Interim Conclusion 178 References The Third Gas Directive Process Agenda Change Problem Stream Political Stream Policy Stream Agenda Window and Coupling Events That Held the Agenda Window Open Policy-Entrepreneur s Coupling Strategies Interim Conclusion 207

10 xii CONTENTS 6.2 Policy Change Length of Decision Coupling Political Entrepreneurs Coupling Strategies Interim Conclusion 219 References Conclusion Empirical Findings Theoretical Findings Advantages of the Multiple Streams Framework Agenda Change Policy Change 240 References 246 Annex I: Structure of the Gas Directives 249 Annex II: Articles of the Gas Directives 251 Annex III: Contributors to Meetings of the European Gas Regulatory Forum 255 Index 259

11 LIST OF ABBREVIATIONS CCEMG CEER CERT Commission Council DG DSO EC ECSC EdF EEC EEU EP ERGEG EU GCM GdF GTE HLG IEM ISO ITSO Consultative Committee of Member States Council of European Energy Regulators Committee on Energy, Research, and Technology European Commission Council of Ministers Directorate-Generals Distribution system operator European Community European Coal and Steel Community Électricité de France European Economic Community Effective and efficient unbundling European Parliament European Regulators Group for Electricity and Gas European Union Garbage can model of organizational choice Gaz de France Gas Transmission Europe High-Level Group on Competitiveness, Energy and the Environment Internal energy market Independent system operator Independent transmission system operator xiii

12 xiv LIST OF ABBREVIATIONS LNG MSF NRA PCCG PET PSO RQ SEA TFEU TOP TPA TSO UK Liquefied natural gas Multiple streams framework National regulatory authority Professional Consultative Committee on Gas Punctuated equilibrium theory Public service obligations Research question Single European Act Treaty on the Functioning of the European Union (Lisbon Treaty) Take or pay Third-party access Transmission system operator United Kingdom

13 LIST OF FIGURES Fig. 1.1 Share of natural gas consumption in the gross inland consumption in the European Union, Fig. 1.2 European natural gas import dependency, Fig. 2.1 Kingdon s multiple streams framework 26 Fig. 2.2 The modified multiple streams framework 36 Fig. 2.3 Causality in the modified multiple streams framework 52 Fig. 3.1 Regulatory diversity in the EU15, Fig. 3.2 Regulatory diversity in the EU27, Fig. 5.1 Number of representative offices of natural gas and electricity sectors at European level, Fig. 6.1 Development of the natural gas price, Fig. 6.2 Supported measures for achieving the IEM according to the findings of the Green Paper s public consultation 200 Fig. 7.1 Number of representative offices of natural gas and electricity sector at European level, Fig. 7.2 Overview of the length of the EU decision-making process 243 xv

14 LIST OF TABLES Table 1.1 EU legislation regarding the internal market in natural gas 7 Table 1.2 A quantitative assessment of the multiple streams literature 11 Table 1.3 A quantitative assessment of the public policy oriented research on energy 12 Table 2.1 Adaptation of the multiple streams framework s core concepts to EU specifics 41 Table 2.2 Adaptation of the political stream to EU specifics 43 Table 2.3 The political stream in the EU 45 Table 2.4 Peculiarities of the political stream regarding the gas directive processes 47 Table 2.5 The political stream during agenda-setting and decision-making 48 Table 2.6 Hypotheses derived from the (modified) multiple streams framework 59 Table 3.1 The gas directives main features 81 Table 4.1 How well the multiple streams framework fares in explaining how the first gas directive entered the decision agenda 113 Table 4.2 How well the multiple streams framework fares in explaining how the first gas directive was passed 134 Table 5.1 State of implementation of the first gas directive by the end of May Table 5.2 Overview of the agenda of the Madrid Forum, first to third meeting 160 Table 5.3 How well the multiple streams framework fares in explaining how the second gas directive entered the decision agenda 163 Table 5.4 Political entrepreneurs coupling strategies 180 xvii

15 xviii LIST OF TABLES Table 5.5 How well the multiple streams framework fares in explaining how the second gas directive was passed 180 Table 6.1 Main findings of the energy sector inquiry 197 Table 6.2 Main findings of the impact assessment 202 Table 6.3 How well the multiple streams framework fares in explaining how the third gas directive entered the decision agenda 210 Table 6.4 How well the multiple streams framework fares in explaining how the third gas directive was passed 220 Table 7.1 Explaining agenda change in EU policy-making by applying the multiple streams framework 234 Table 7.2 Explaining policy change in EU policy-making by applying the multiple streams framework 235 Table 7.3 Frequency with which the European Council referred to the policy process (or the internal energy market) 244

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