directorate general for energy and transport johannes enzmann administrator dg energy and transport...

Directorate General for Energy and Transport

Johannes ENZMANNJohannes ENZMANN

AdministratorAdministrator

DG Energy and TransportDG Energy and Transport

European CommissionEuropean Commission

GTE 2nd Annual Conference23 September 2004, Copenhagen

Completing the Internal Energy Market for Gas


EU Market share of natural gas

0

5

10

15

20

25

30

35

in % of Gross Inland Consumption

EU15

EU25

EU15 23,3 28,9 32 32,3

EU25 22,8 28,5 31,6 32

2000 2010 2020 2030


Implementation – state of play

Transposition until 1st July 2004Obligation of Member States to notify

pursuant to Art 33(1)State of play 1st July 2004:

2 MS have notified, another one has finally transposed the Directive

another 2 MS presumably until end of September14 MS presumably by end of 20045 MS in 2005derogations


Key provisions of the 2nd Internal Gas Market Directive

Underlying principle: non-discrimination and transparency;

Legal and functional unbundling of networks (natural monopolies)

Unbundling of accounts of integrated companies;

TPA on the basis of regulated tariffs (ex ante approval)

TPA to gas storage facilities (negotiated or regulated)

Full market opening by 2007; all non-households from July 2004;

Regulatory authorities with certain minimum powers


Complementary measure to Directive 2003/55/EC: it aims at setting minimum requirements for conditions for access to the gas transmission networks

Qualitative market opening as important as quantitative market opening

crucial importance of TPA as the principal tool to open the market and introduce competition

Regulation defines certain minimum requirements with respect to a key element of the Directive, i.e. TPA

level playing field and principles of non-discrimination and transparency

Regulation on Access Conditions: objectives


Adoption of the proposal by the Commission in December 2003

1st reading of the European Parliament in April 2004

Political agreement of the Council in June 2004

Common Position expected in November 2004

2nd reading of the European Parliament

Final adoption presumably in 1st half of 2005

Regulation on Access Conditions: state of play


Regulation on Access Conditions: main topics

Submitted in December 2003, political agreement achieved in June 2004

Topics:TariffsTPA ServicesCapacity allocation and congestion managementTransparency requirementsBalancingSecondary markets

Comitology procedure


Security of Supply Directive – Safeguarding SoS in the internal market

Ensuring the well-functioning of the internal market bysafeguarding security of gas supplyadapting to new market environment

This is achieved bydefinition of security of supply policiesdetermination of roles and responsibilities of

market playersdetermination of minimum output standards


The EU Gas Regulatory ForumLatest meeting July 2004Discusses complementary measures to the Gas

Directive i.e. how in practice to ensure competition and non-discrimination;

The European Group of RegulatorsAdvisory GroupHeads of national regulatory authoritiesAssist Commission in consolidating the Internal

market for gas and electricity

Regulatory Groups


Access to storage

Directive 2003/55/EC: Art 2(9) and 19 Interpreting note on TPA to storage Conclusions of the 7th and 8th Madrid Forum

Need for non-discriminatory and transparent accesss conditions to storage facilities

Guidelines for Good TPA Practice for Storage System Operators (GGPSSO)

Inventory on access conditions stressed the need for GGPSSO covering the issues identified by the Commission and the Regulators, such as Necessary TPA services, capacity allocation and

congestion managment, confidentiality and transparency requirements, tariffs structure, market based mechanisms etc


Overview negotiated – regulated TPA

BEB negotiated NAM negotiated

BP negotiated OMV negotiated

CSL regulated RAG negotiated

DONG negotiated EON-RG negotiated

Edison regulated Stogit regulated

Enagas regulated RWE-TG negotiated

Fluxys regulated VNG negotiated

GdF negotiated Wingas negotiated


Overview services

Bundled Service UBS Secondary M Interruptible Reverse flow

BEB SBU 10% of I/W EBE, cap&com Dem > avail.

BP SBU cap

CSL SBU EBE any unused ff capacity

DONG SBU different IWS cap&com following neg

Edison cap&com

Enagas SC to book

Fluxys SBUs SBU trading operational ltd, but possible

GdF basic service linked to BS

NAM SBU cap, poss EBE overcome min.

OMV range of SBUs min. capacities commodity flexible service

RAG I=W tailor made not yet

Ruhrgas SBU confirmed confirmed

Stogit cap&com Dem > avail.

RWE/TG cap, creditw. if insuffic. I\W confirmed

VNG WC and SC ratio confirmed additional 10% confirmed

Wingas confirmed following neg confirmed


Summary Also the overall picture looks relatively positive with

respect to the range of services offered, there is considerable room for improvement for some operators.

In terms of capacity allocation and congestion management, the prevailing practice might not comply with the requirements of a well functioning competitive market

Transparency requirements need to be clearly defined

Clear rules should ensure non-discrimination Negotiated tariffs: do they reflect the market value of

the service in all cases?


ConclusionsOpening of energy markets key aspect

of the Lisbon objectiveProper implementation of 2nd internal

gas market directive indispensable, but must be complemented by measures such as the regulation on access conditions

Sufficient?...… Commission report on progress on

the internal market for energy

directorate general for energy and transport johannes enzmann administrator dg energy and transport...

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