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ACER
Past, Present and Future
How ACER came about
Alessandro OrtisJune 2016
2
…shared cultural context
1. Liberal economy & liberal society & sustainable development
• do not mean wild savanna• but demand rules, therefore, regulators
able, inter alia, to promote- transparent and efficient markets- fair competition- consumer protection
Energy sector included
2. Union is strengthcollaboration, cooperation is helping
“Pre-history”
1887 USA
1920 USA
1987 EUROPE
1989 - 1996
1997 February
1997 March
1998 February
1999 September
Interstate Commerce Commission (archetype)
Federal Power Commission, electricity regulation
Single European Act (single space & market)
NRA in UK, Spain, Italy, Portugal, Hungary, Finland,
Sweden
Entry in force of the first electricity market Directive
NRA of Italy, Spain, and Portugal start informal co-
operation (regular meetings, working groups)
European electricity Regulation Forum (Florence
Forum) Institutional coordination to overcome the
existing “regulatory gap”
European Gas Regulatory Forum (Madrid Forum)
May ‘88 Working Paper «The internal energy market»
3
“Ancient history”CEER
2000 March Memorandum of understanding (8 items)
• Info, experience, assistance exchange (FSR)
• Cooperation among members and collaboration
with the Institutions, to promote: liberalization;
independent regulation; supranational systems
& market integration; efficiency; competition and
competitiveness; building a transparent, reliable,
harmonized regulatory framework;
• Establish common policies/ common rules.
2003 June Not – for – profit Association
4
“Middle Age”CEER and ERGEG
2003 June Second Directives: mandatory independent NRA
2003 November EC Decision Establishing advisory committee ERGEG
CEER & ERGEG: platforms for IEM further
development
2004 September
2003 – 2009 CEER international commitments: IERN, ERRA,
Twinships, ECRB, MEDREG, ICER 5
European Framework
1957 EUROPEAN ECONOMIC COMMUNITY (Roma, March, 1957)
1985 White Paper (Delors/Cockfield)
1988 Working paper «the internal energy market»
1990 “Transits” directives, elettricity and gas
1996/98 Directives for internal european market
(eletricity and gas)
2003 Directives for internal european market
(eletricity and gas)
2008 EU Package for sustainable development
2009 3rd Energy Package
1993 EUROPEAN UNION (Maastricht, December 1991)
1924 Unipede 1950 UCPTE (OECD) 1963 Nordel/ Sudel
6
The 3rd European Package
A package of EU measures aimed at full liberalization of the internal
European market of electricity and gas, completing the existing
European framework.
The 3rd European Package includes 5 documents:
1.Directive 2009/72/CE, common rules for the internal market in
electricity (repealing Directive 96/92/CE)
2.Directive 2009/73/CE, common rules for the internal market in
natural gas (repealing Directive 98/30/CE)
3.Regulations (CE) 714/2009, conditions for access to the network
for cross-border exchanges in electricity
4.Regulations (CE) 715/2009, conditions for access to the natural
gas transmission networks
5.Regulations (CE) 713/2009, establishing an Agency for the
Cooperation of Energy Regulators (ACER)
7
The 3rd European Package (2)
Unbundling
National
Regulatory
Authorities
European
Agency
(ACER)
Network Codes
UEConsumers
OU Model
Ownership
Unbundling
ISO Model
Independent
System Operat.
ITO Model
Independent
Transmission
Operator
Independence
Enforcement
powers
Sanction
powers
EU-funded
Agency
Cooperation
of Energy
Regulators
Extension at
EU-wide level
of the regulatory
national action
ENTSO
Binding
network codes
Framework
given by ACER
Codes prepared
by ENTSO
Codes approved
by ACER/EC
Definition of
Vulnerable
consumers
Annex I
Smart
metering
TARGET COMPLETING THE INTERNAL ENERGY MARKET
8
NRAs
Regulate, Monitor/Control, Intervene (sanctions, prescriptions)
• Independence- Legally and functionally
- From any government or other public or private entity
- From any market interest
- Board appointment procedure
- Board mandate and incompatibilities
• Autonomy- Financing and administration- Human resources and internal organization
• Transparency- Institutional and public hearings, dialogue - Massive public consultation, RIA- Full publication
• Accountability- Appeal procedures, administrative justice- Institutional reporting
9
(…from Wikipedia)
ACEREuropean Agency for the Cooperation of
Energy Regulators
• By the third Energy Package 2009
• Established in 2010, launched in March 2011
• Seat in Ljubljana, Slovenia
• Key document: Regulation (EC) 713/2009
• Director Alberto Pototschnig, designated by the AB,
on 6 May 2010
10
CEER/ERGEG and “ACER debate”(2007 – 2009)
• December 2007, “Key Comments” of CEER on the EC “Third
package” proposal, agency included.
• Continuous dialogue with EC, EP and Council members
• 2009, final “amendments ACER Regulation”
• Agency for cooperation of ...or Agency of…
• Independence, autonomy, accountability
not downgrade, NRAs
• Parallel reporting to EP, Council, EC
• Governance: AB/BoR/CE
Director appointment, working program adoption,
Agency staff policy… and languages
Time for institutional tuning and strengthening?
ACER and NRAs in the future
11
12
… Future
In front of permanent and new challenges
• Foster the “energy tradition” pro:
- competitiveness at cost, tariff, prices and quality levels
- security and adequacy
- sustainable development
• Confirm the “energy heritage/proactive attitude”- Systems and market integration- CECA, EURATOM, … single market/space/voice
• Get out of the ford- backwards (protectionism, nationalism, …XX exit) ?
or- forwards (single space…EU Federation) ?
• Tell again the people and Institutions about the benefits from a real EU …including energy sector
• Make our voice heardNRAs CEER BoR/ACER
13
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