ACER

Past, Present and Future

How ACER came about

Alessandro OrtisJune 2016

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…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»

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“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

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“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

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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)

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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

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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

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(…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

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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

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… 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

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