apex conference main issues in the new eu directive 2003/54 and eu regulation 1228/2003

Directorate General for Energy and Transport

APEx conference

Main issues in the new EU Directive 2003/54 and EU Regulation 1228/2003

Leipzig 11.10.2004

European CommissionDG Energy and Transport

Cristobal Burgos AlonsoDirectorate for Conventional [email protected]


Summary

Path to liberalisation

Electricity directive

Regulation on cross-border trade of electricity

Market design


Path to liberalisation

Single Market Treaty 1985 White Paper on Energy Policy 1995 Electricity (1996) and Gas (1998)

Directives Lisbon summit 2000 Amendment proposal 2001 Political agreement at Council 2002 Package adopted June 2003 Implementation by 1 July 2004


The package

Directive 2003/54 – electricity

Directive 2003/55 – gas

Regulation 1228/03 – electricity

Most provisions effective from July 2004


Directive 2003/54/EC

Opening to all non-household customers July 2004

Full market opening July 2007

Legal unbundling of transmission by July 2004, distribution by July 2007

Regulated Third Party Access

Universal service obligation

Duty to monitor security of supply


Basic principles for: transmission charges (entry\exit)

congestion management (market based and non-discriminatory)

inter TSO compensation (actual flows, standard costing method)

Comitology procedure to adopt detailed guidelines

Regulation 2003/1228/EC


Cross border exchanges Interconnection and market

concentration Security of supply and volatile

prices Need to deliver environmental

objectives

Fundamental issues


Regional energy markets in the EU

Moderately concentrated

Highly concentrated

Very highly concentratedcongestion


Status of congestion management

Source: ETSO


Status of congestion management in Europe

On 25 most congested interconnectors:

12 interconnectors are managed with market-based methods

13 with non-market based methods

14 interconnectors have a joint method agreed between the TSOs/regulators concerned

In 11 cases:

50%-50% split of the capacity or

capacity has to be obtained from both TSOs or

allocation is unilateral


Progress in LiberalisationImplementation

Level of development of competition

Electricity Gas

not functioning GR, EE, LV all the new MS, FI, PT, GR

initial steps only BE(f)[1], LU, LT, PT, PL, CZ, SI, SK

DE, LU, SE, BE(f)

some progress ES, BE(n), IR, IT, FR, HU, RO

AT, BE(n), FR, IT

well developed DK, AT, DE, NL NL, IR, DK, ES

complete UK, SE, FI, NO, UK

[1] BE(f) – francophone Belgium (Brussels and Wallonia), BE(n) = Flanders


Infrastructure package

Second communication on European infrastructure

Directive on security of electricity supply

Directive on energy services

Revision of the Trans-European Energy Networks Guidelines to include accession countries

Regulation on access to gas networks


Conclusions and Way Forward

EU has created the world biggest electricity market

Implementation of the legal framework and the practical application of the rules are not yet completed

In 2005 EU will produce a report on the functioning of the internal market for electricity and gas

After that it will be assessed what further measures are needed


Thanks for your attention

Please visit our website

http://europa.eu.int/comm/energy/electricity/index_en.htm

apex conference main issues in the new eu directive 2003/54 and eu regulation 1228/2003

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