North North West Region Regional Gas Initiative

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North / North West RegionRegional Gas Initiative

• Regulatory Co-ordination Workshop
• 8th February 2007

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Introduction

• Keelin OBrien
• CER Ireland

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Workstream Deliverables

• Martix of Regulatory Powers
• Drawing on Work of CEER / ERGEG
• Operator Issues
• Expanded to include Shippers /Storage Operators
• Conclusions Paper Categorise Issues Dealt with
  by
• Legislation
• Other Workstreams / CEER / ERGEG
• Improvements can be made by improved Regulatory
  Co-ordination
• Guidelines for Regulatory Co-ordination

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Agenda for Workshop

• Matrix of Regulatory Powers
• Keelin OBrien
• Transporter Issues
• Britta Van Boven
• Responses to Issue paper
• Keelin OBrien
• Discussion and Development of Conclusions Paper

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Matrix of Regulatory Powers

• Keelin OBrien
• CER Ireland

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Methodology

• Draw on Work of CEER
• CEER Regulatory Benchmark report Dec 05
• Summarise Powers for Each Country in the Region
• Includes Norway Northern Ireland Added No
  information for Poland
• Summary of ERGEG paper for Background
• Compatibility of National Legal Conditions
  Concerning Regulatory Competences Dec 06

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Regulatory PowersEU Level
ERGEG Consider
National regulatory competences need to be
compatible and complementary in order to develop
the EU energy market
The regulatory and legislative framework is not
consistent with the development of a more
integrated and ultimately single energy market.
The existing regulatory framework is designed
primarily to create the conditions for a
liberalised within National boundaries. This will
not be sufficient to achieve a single
competitive EU energy market.
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Requirement for Legislation

• Regulatory Powers underpinned by
• Article 25 of Gas Directive (2003/55/EC)
• Regulation 1775/2005
• Commission Decision setting up ERGEG
• ERGEG recommend Additional Powers
• ability for regulators to act jointly to oversee
  investments in and operation of networks
• ability for regulators to gather and exchange
  information and pursue ..activities in one
  territory that affect markets in another

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A necessary starting point for developing
guidelines is an assessment of the concrete
powers and areas of discretion of the regulators
of the member states within the existing national
frameworks to identify the possibilities for
creating a common set of binding guideline and
processes for issues of co-operation without
changing the existing regulatory and legal
frameworks. - RWE (response to Issues
paper)
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Regulator Cross Border Competencies

• Mandate to recognise customers interests in
  adjoining markets
• E.g. cost transfers on transmission
  infrastructure
• Possibility to co-operate and act jointly with
  other regulators
• Exchange Information
• Request and Pursue market Investigations
• Effective Decision making processes to decide on
  Joint Actions
• Possibility to co-operate jointly with
  competitive authorities

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National Market Level

• Regulatory authority should be independent and
  have own resources
• Role in advising Government
• Sufficient powers to enforce decisions and
  introduce sanctions and penalties

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Network and Market Operations

• Approve and monitor compliance with rules for
  access to and use of system
• Approve and set methodologies or levels for
  tariffs for UOS and connection
• Resolve disputes on access and charges
• Approve rules for wholesale market including
  balancing, settlement and credit
• Monitor and enforce compliance with market rules
• Require timely information to be made available
  on retail and wholesale markets

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Legal Framework Matrix
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Legal Framework Matrix(2)
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Matrix - Operational Issues

• Access to Information
• Dispute Resolution
• All but Northern Ireland and Belgium
• Tariffs
• All Methodology except GB, Den and Ger
• All level except Norway Denmark
• All but Norway approve Fra can be overruled

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Operational Issues (2)

• Licences Issue, Modify, Monitor
• GB, Ire, NI, Neth, Nor, Swe
• Licences Sanction
• Bel, GB, Ire, NI, Neth, Swe
• Rule Making Authority
• Network Access (except Bel, Den)
• Market Rules (except Swe, Den, Ger)
• Balancing (except Bel, Den)

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Operational Issues (3)

• Congestion Management
• Approve Rules (except GB, Den, Swe)
• Allocate Capacity (except GB, NI, Swe, Den, Neth)
• Investment
• Planning Ire NI, advisory role BG, Fra, Bel
• Approving Ire, NI, Fra, Nor
• Recovery Ire, NI, Den, Neth, Nor
• Cross Border Exchanges
• Standards Fra, BG, Ire, NI, Neth, Nor
• Exemptions Fra, BG, Ire, NI, Ger