electricity and natural gas markets: the european …...microsoft powerpoint - jorge vasconcelos.ppt...
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ELECTRICITY AND NATURAL GAS MARKETS:
THE EUROPEAN APPROACH TO
RESTRUCTURING AND REGULATION
Jorge VasconcelosEntidade Reguladora dos Serviços Energéticos
CEEP Discussion Days, “Services of general interest, pillars of the European model”
Coimbra, March 5, 2003
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ELECTRICITY AND NATURAL GAS MARKETS:
THE EUROPEAN APPROACH TO RESTRUCTURING AND REGULATION
1. BUILDING THE INTERNAL ENERGY MARKET
2. ENERGY MARKETS AND THE GENERAL INTEREST
3. CONCLUSIONS AND OPEN QUESTIONS
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1. BUILDING THE INTERNAL ENERGY MARKET
LIBERALIZATION REGULATION
VERTICALLY
NETWORKS
VERTICALLYINTEGRATED
NATIONALMONOPOLYMONOPOLY
EUROPEANINTEGRATION
“EUROPEANIZATION”COMPETITORS
EUROPEANMARKET
“EUROPEANIZATION”
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1. BUILDING THE INTERNAL ENERGY MARKET
. . .
MONOPOLYMONOPOLY
MONOPOLY(NETWORKS)
. . .
CONSUMER CONSUMER
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1. BUILDING THE INTERNAL ENERGY MARKET
VERTICALLY-INTEGRATED MONOPOLY
GENERATION
TRANSMISSION
DISTRIBUTION
SUPPLYSUPPLY
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1. BUILDING THE INTERNAL ENERGY MARKET
UNBUNDLING
GENERATION
TRANSMISSION
DISTRIBUTION
SUPPLYSUPPLY
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1. BUILDING THE INTERNAL ENERGY MARKET
UNBUNDLING: ACCOUNTSUNBUNDLING: ACCOUNTS
ORGANISATIONORGANISATION
LEGALLEGAL
OWNERSHIPOWNERSHIP
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1. BUILDING THE INTERNAL ENERGY MARKET
OPENING UP MARKETS
G
T
D
S
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1. BUILDING THE INTERNAL ENERGY MARKET
MINIMUM ≈ 33%
ACTUAL ≈ 66%
2007 = 100%2007 = 100%
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1. BUILDING THE INTERNAL ENERGY MARKET
COMPETITION
G
T
D
S
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WHOLESALE MARKETSWHOLESALE MARKETS(POWER EXCHANGES, HUBS, SETTLEMENT, IMBALANCE MARKETS, ETC.)
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RETAIL MARKETSRETAIL MARKETS(MEASUREMENTS, SWITCHING, ETC.)
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1. BUILDING THE INTERNAL ENERGY MARKET
REGIONAL MARKET INTEGRATION
(1)
G
COUNTRY A COUNTRY B COUNTRY C COUNTRY D
T
D
S
C
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1. BUILDING THE INTERNAL ENERGY MARKET
REGIONAL MARKET INTEGRATION
(2)
G
COUNTRY A COUNTRY B COUNTRY C COUNTRY D
T
D
S
C
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1. BUILDING THE INTERNAL ENERGY MARKET
REGIONAL MARKET INTEGRATION
(3)
G
COUNTRY A COUNTRY B COUNTRY C COUNTRY D
T
D
S
C
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1. BUILDING THE INTERNAL ENERGY MARKET
REGIONAL MARKET INTEGRATION
(4)
G
COUNTRY A COUNTRY B COUNTRY C COUNTRY D
T
D
S
C
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1. BUILDING THE INTERNAL ENERGY MARKET
Ireland N.IrelandNorway Sweden Finland
Estonia
R
Great Britain
Belgium Netherlands W. Denmark
PolandEstonia
Latvia
u
sE. DenmarkBelgium
Luxembourg
Netherlands
Germany
W. Denmark
Lithuania
Czech Republic Slovakia
s
E. Denmark
France BelorussiaSwitzerland Austria Hungary
Czech Republic Slovakiai
a
Ukraine
ItalySlovenia
Spain
P t l
Croatia
B i F
FRY RomaniaMoldova
BulgariaPortugal Bosnia
AlbaniaGreece
Fyrom Bulgaria
TurkeyMorroco
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1. BUILDING THE INTERNAL ENERGY MARKET
THE MAIN CHALLENGES OF INTEGRATING EUROPEAN ENERGY MARKETS
- TECHNICALTECHNICAL
- ECONOMIC- ECONOMIC
- INSTITUTIONAL- INSTITUTIONAL
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1. BUILDING THE INTERNAL ENERGY MARKET
THE CHALLENGES OF INTEGRATING EUROPEAN ENERGY MARKETS
TRANS-EUROPEANNETWORKSPLANNING
NETWORK
NETWORKSCOORDINATION
INTEGRATION
OPERATION C COPERATIONCOORDINATION
TECHNICALCODES
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1. BUILDING THE INTERNAL ENERGY MARKET
NETWORK
THE CHALLENGES OF INTEGRATING EUROPEAN ENERGY MARKETS
NETWORKINTEGRATION
MARKETDESIGN &
IMPLEMENTATION
MARKETINTEGRATION “INTEGRATED”
AGENTSAGENTS
FINANCIALFINANCIALTOOLS
SUITABLEREGULATION
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1. BUILDING THE INTERNAL ENERGY MARKET
THE CHALLENGES OF INTEGRATING EUROPEAN ENERGY MARKETS
NEW ORGANIZATIONS AND INSTITUTIONS:
• CEER (REGULATORS)
• ETSO, GTE (SYSTEM OPERATORS)
CONSUMERS TRADERS MARKET OPERATORS ETC• CONSUMERS, TRADERS, MARKET OPERATORS, ETC.
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THE EUROPEAN MODEL:
REGULATION BY COOPERATION
EUROPEANCOMMISSION
hhh
CEER
NATIONAL REGULATORYAUTHORITIES
CONSUMERS
INDUSTRY SYSTEMOPERATORS
TRADERS
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2. ENERGY MARKETS AND THE GENERAL INTEREST
ENERGY POLICY GOALS:
hCOMPETITIVENESS OF EUROPEAN ECONOMYCOMPETITIVENESS OF EUROPEAN ECONOMY
hSECURITY OF SUPPLYhSECURITY OF SUPPLY
ENVIRONMENThENVIRONMENT
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2. ENERGY MARKETS AND THE GENERAL INTEREST
OTHER “GENERAL INTEREST” ISSUES:
h VULNERABLE CUSTOMERS
h QUALITY OF SUPPLYQUALITY OF SUPPLY
h EMPLOYMENTEMPLOYMENT
h R & Dh R & D
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2. ENERGY MARKETS AND THE GENERAL INTEREST
PROFITPROFITSHAREHOLDERS
EconomicEfficiency
COSTS
PRICEQUALITY REGULATOR
CUSTOMERSRULESCOMPANY
(RegulatoryPUBLIC
INTEREST
• Price stability
(RegulatoryContract)
• Price stability• Price equity• Energy efficiency• Reliability• Security of supply
•
• Security of supply• Environmental protection• Universal service
etc.
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2. ENERGY MARKETS AND THE GENERAL INTEREST
“ [T]he key normative problem of the regulatory state is how agency
indepedency and democratic accountability can be made complementary
and mutually reinforcing rather than antithetical values.y g
(...) When (...) a system of multiple controls works properly , no one
controls an agency yet the agency is ‘under control’ ”controls an agency, yet the agency is under control
Giandomenico Majone
“ From the positive to the regulatory state: causes and consequences of changes in
the mode of governance “.
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3. CONCLUSIONS AND OPEN QUESTIONS
1) ELECTRICITY AND NATURAL GAS LIBERALIZATION
IS POSSIBLEIS POSSIBLE
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3. CONCLUSIONS AND OPEN QUESTIONS
2) ELECTRICITY AND NATURAL GAS LIBERALIZATION )
IS BENEFIC
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3. CONCLUSIONS AND OPEN QUESTIONS
3) MECHANISMS OF MARKET AND REGULATION SHALL ADAPT ...
TO THE
“GREENING”
OF THE INDUSTRY
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3. CONCLUSIONS AND OPEN QUESTIONS
EU MARKET INTEGRATION:
HOW FAST WILL A NEW INDUSTRIAL STRUCTURE EMERGE
AND
HOW EFFICIENT AND COMPETITIVE WILL IT BE
??
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3. CONCLUSIONS AND OPEN QUESTIONS
EU MARKET REGULATION:
BOTTOM UP (CEER CEER + EUROPEAN COMMISSION)
OR
TOP DOWN (EUROPEAN COMMISSION)TOP DOWN (EUROPEAN COMMISSION)
??
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