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EP ITRE hearing 24 Jan 2008

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Does the Third Package provide the European TSO associations with the tools ... TSOs can provide the necessary foundation to enable a flourishing market ... – PowerPoint PPT presentation

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Title: EP ITRE hearing 24 Jan 2008


1
Does the Third Package provide the European TSO
associations with the tools necessary to find
solutions to the European energy challenge ?
Nigel Sisman, GTE Senior Advisernigel.sisman
_at_gie.eu.com
Energinet.dk New Tasks New Tools conference,
Copenhagen 12th March 2008
2
Current state of play
  • 27 countries
  • gt 40 transmission system operators (TSOs)
  • Several hubs, some mature, some emergent

Third Package the third attempt to deliver a
single European gas market
3
The Third Package Framework
Commission
  • Need
  • Clear roles and responsibilities
  • Checks and balances

TSO body
Agency
  • Overcome barriers at 3 levels
  • Legal
  • Regulatory
  • Contractual Industrial

4
The TSOs role
  • secure, reliable and efficient operation of the
    transmission networks which are the backbone of
    the gas system
  • provision of the market place for interested
    stakeholders by bridging the gap between physical
    and contractual aspects of gas transmission
    (commodity-making principle)

TSOs cannot ensure a properly functioning market
however TSOs can provide the necessary
foundation to enable a flourishing market
5
TSOs Third Package Responsibilities
  • Tasks include, in particular, the adoption of
  • an annual work programme
  • technical and market (network) codes in 11 areas
  • a 10-year network development plan every two
    years
  • annual winter supply outlooks
  • an annual report
  • Consultation processes
  • To establish the annual workprogramme
  • To consider change proposals
  • To inform 10 Year Capacity Development Statement

6
Agency
  • To enhance regulatory co-ordination
  • To support and endorse codes
  • To monitor the implementation of the codes and
    assist compliance via NRAs

Agency support and regulatory co-ordination
essential to develop change
7
Commission role
  • Directives and regulations
  • ensuring the policies are implemented
  • Addressing legal inconsistencies
  • to enable implementation process
  • Comitology
  • where ENTSOG technical and market codes are not
    implemented

8
TSOs progress towards formal TSO body
  • Shadow formal body (GTE) established by GTE
    members
  • 3 Senior Advisers hired
  • Market consultation on the work programme in the
    spring
  • Key deliverables for this year are
  • Transparency platform
  • 10-year network development plan
  • Winter outlook

9
Conclusions
  • Third Package a good step
  • Only minor refinements necessary
  • TSOs must
  • establish ENTSOG
  • develop robust consultation processes
  • involve all stakeholders
  • The Agency must
  • offer opinions on ENTSOG work
  • make recommendations to implement
  • deal with regulatory, and assist with legal
    barriers
  • Commission must
  • ensure Directives/Regulations implemented
  • assist address legal inconsistencies
  • resort to comitology if appropriate
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