UNICE Hearing: 19th April 2006

1

• UNICE Hearing 19th April 2006
• Measures necessary for a well functioning,
  competitive, sustainable, secure internal gas
  market
• Margot A. Loudon
• Deputy Secretary General Eurogas

2

• NEEDS OF CUSTOMERS
• Security i.e. supply guaranteed in accordance
  with contract
• Competitively priced gas
• Choice of supplier (customer switching
  procedures)
• Predictability of prices
• NEEDS OF SUPPLIERS
• Customers right to switch means that suppliers
  have to be able to offer excellent service at
  competitive prices
• Efficient, non-discriminatory services, from
  system operators requiring an appropriate and
  efficient regulatory regime
• Creation of well functioning transparent
  wholesale gas markets contributing to a robust
  liquid European market
• A functioning European market that will continue
  to attract necessary supplies
• An external policy framework

3

• INTERNAL MARKET
• Non-discriminatory, access to the system and
  efficient system operations
• transparency, underpinning tariff setting, and
  inter alia, optimization of existing capacity
  use, common understanding on capacity
  calculation scenarios, non-discriminatory
  capacity allocation, secondary market
  facilitated by TSOs, congestion management,
  UIOLI rules
• larger entry-exit zones and market-based
  balancing (i.e. balancing charges are
  cost-reflective and provide the right incentives
  for users)
• Improved interoperability
• Promotion of Regional Markets and Hubs
• hubs should be market driven, but regulators
  have a role in overseeing hubs operation, and
  promoting the right operating framework
• suppliers, regulators and TSOs should work
  together towards facilitating swaps to maximise
  use of existing infrastructure
• Investment needs
• a framework conducive to future investments
  (stable regulation, appropriate rates of return,
  good communications between operators and users
  on future market developments)
• Other means to enhance market integration?

4

• AN EXTERNAL POLICY FRAMEWORK
• Dialogue with producers and transit countries
• Neighbourhood policy
• A coherent European energy policy with
  appropriate roles for EU, national authorities
  creating the right diplomatic, institutional and
  legislative framework for enterprise, allowing
  industry to operate effectively
• Diversification of supplies in terms of
  different sources and routes to Europe, with
  necessary investments in infrastructure
• Sufficient long-term commitments for upstream
  supplies