regional market monitoring mini forum cwe rem paul giesbertz dte brussels, 20 june 2006
TRANSCRIPT
Regional Market MonitoringMini Forum CWE REM
Paul GiesbertzDTe
Brussels, 20 June 2006
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Legal framework
DTe is responsible to monitor energy markets. This
requirement was included in the Dutch Electricity Act
(article 5) and came into force on July, 14 2004 and follows
Article 23 of the European Directive 2003/54/EU.:
– These regulatory authorities shall … at least be responsible
for … monitoring in particular …. the level of transparency
and competition
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Market Monitoring in Power Markets is particularly relevant, difficult and important
Electricity is non-storable Each 15 minutes defines a new product! Low demand elasticity European energy markets are concentrated Existence of transmission constraints can cause local market
power problems A large consumer with some load shedding potential can have
significant market power in certain periods European market design is NOT mandatory pools with bids on a
per generation unit basis Multiple markets entail risk of cross-market gaming Effective monitoring can establish threat and reduce risk of abuse
and improve market confidence
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Regional markets require regional market monitoring
Market participants are international parties that act in
several markets and optimise their portfolio as a whole National markets are closely and increasingly linked Market coupling implies further close interaction between
national markets Further market integration may reduce regulatory threat on
“national champions” The Roadmap FR-BE-NL therefore foresees set-up of joint
monitoring Task Force
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Pentalateral Energy Forum – Report June 8th
The 5 Ministers invite:– the relevant legislators … to amend … legislation in
order to enable regulatory authorities … to exchange …
confidential information– Regulators to draft a multilateral agreement on
confidentiality that will facilitate the information
exchange between themselves.
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What is next?
Regional market monitoring is much more than sharing
confidential information But also: joint analysis and joint reporting Market structure and possible power mitigation measures
require regional perspective