Directorate General for Energy and Transport 1

Ana Arana AnteloAna Arana Antelo

Head of Unit Electricty & Gas – European Head of Unit Electricty & Gas – European Commission/DG TRENCommission/DG TREN

GIE Annual Conference, 22.11.2007, Madrid

Third PackageThird Package

How will it tackle infrastructure How will it tackle infrastructure investment?investment?

Directorate General for Energy and Transport 2

3rd package – background

Starting point Benchmarking reports and Green PaperProgress report, Sector Inquiry and Strategic Review of 10

January 2007Conclusion: Urgent need to strengthen competition and

complete internal energy market Main shortcomings

Vertical integration of companies and high degree of market concentration

Lack of market integration at EU level: lack of TSO cooperation – regulatory gap – lack of interconnection

Lack of transparency Different powers and competences of national regulators

Directorate General for Energy and Transport 3

3rd package: main measures

Main areas

Unbundling of networks

Cooperation of network operators

National regulators

EU Agency for Regulatory Cooperation

Transparency

Solidarity cooperation

Consumer protection

Directorate General for Energy and Transport 4

3rd package – focus investments (1)

HOW DOES THE 3rd PACKAGE TACKLE INVESTMENTS?HOW DOES THE 3rd PACKAGE TACKLE INVESTMENTS?

1. Transmission – ownership unbundling Supply interests of integrated companies are in conflict of interest

with provision of sufficient transport capacities 3rd package: ownership unbundling to ensure independence of

network operators; alternatively ISO having a say on investment decision

2. 3rd country investments Without prejudice to the international obligations, transmission

systems or TSOs shall not be controlled by persons from 3rd countries

Reversal of proof for ownership unbundling Create a level playing field for EU and non EU investors

Directorate General for Energy and Transport 5

3rd package – focus investments (1)

HOW DOES THE 3rd PACKAGE TACKLE INVESTMENTS?HOW DOES THE 3rd PACKAGE TACKLE INVESTMENTS?

3. TSO cooperation on EU level

Responsible for coordinate the planning of network investments

monitor the development of transmission network capacities

4. National regulators

Current varying policy objectives and responsibilities of regulators especially problematic in the field of new investments

3rd package: enhancing statutory duties and powers review investment plans of national TSOs

Directorate General for Energy and Transport 6

3rd package – focus investments (1)

HOW DOES THE 3rd PACKAGE TACKLE INVESTMENTS?HOW DOES THE 3rd PACKAGE TACKLE INVESTMENTS?

5. Agency

complement the regulatory tasks performed at the national level European – close “regulatory gap”

decision making powers for specific cross-border issues eg "Article 22" exemption requests for infrastructure projects involving more than one Member State

Directorate General for Energy and Transport 7

3rd package – focus investments (1)

HOW DOES THE 3rd PACKAGE TACKLE INVESTMENTS?HOW DOES THE 3rd PACKAGE TACKLE INVESTMENTS?

6. Storage Currently suppliers have to contact their competitors to contract

their storage need does not enhance market confidence, serious barrier for new entrants

3rd package: legal and functional unbundling of storage system operators to enhance effective access to storage

ERGEG monitoring report on compliance with Guidelines of Good Practice for Storage (Dec 2006) showed that the level of storage capacity available to TPA is unclear

3rd package: Member States define and make public criteria when and how third party access to storage applies

Directorate General for Energy and Transport 8

SummaryEuropean Investment Plan

TSO ENTSO NRA AGENCY COMMISSION OTH.STAKEH.

Monitor

Propose

Do

Review

Decide

Opinion

Consult

National plansReview National plan, Consistency with European plan D (el) 22c (f)

ConsultedR (el) 2f (1)

Monitors investments R (el) 2d (1)

Reviews draft and gives opinion R (ag) 6 (3)

Receives opinion if drafted measures do not ensure non disc., comp. and eff. func. marketR (ag) 6 (4)

Consultation on European investment planR (el) 2f (1)Draft 10-year investment planR (el) 2d (2)

Adopt European Investment planR (el) 2c (1c)Publish R (el) 2c (5)

Receives opinionR (ag) 6 (3)

Receives opinionR (el) 2d (2)

TEN-E guidelines

Invests

Directorate General for Energy and Transport 9

TEN-E policy

TEN-E policy has gained importance

Still little money available, but: Focus on important and mature projects instead of a long

"wish-list" Co-ordinators nominated for key projects (Nabucco) Obligations for MS to report on progress and to coordinate

Future of TEN-E policy? Tackling the difficulties to get permits for the projects through

the Regional Initiatives Close link with the European investment planning by TSOs More money

Directorate General for Energy and Transport 10

Conclusions

Third package has very important elements regarding invesments Ownership unbundling TSO-cooperation National regulators’ and agency’s role

regarding investments

Third package will support TEN-E policy and vice-versa