1st RCC Meeting Region SouthSouth East

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1st RCC Meeting Region South-South East June
1, 2006, ROME
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• Part I General Issues

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1. Opening

• Welcome
• Approval of the Agenda

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1.1 Approval of the Agenda Part I
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1.1 Approval of the Agenda Part II
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2. ERGEG Regional Initiative

• ERGEG published its gas roadmap for consultation
  in November 2005
• The roadmap sets out ERGEGs view on the key
  issues inhibiting the development of competitive
  gas markets
• ERGEG proposed a gas regional initiative to push
  forward market integration at a practical level
• 26 responses were received - non-confidential
  responses are published on ERGEGs website
• Support from all respondents for the gas regional
  initiative
• Lack of market integration identified by DG
  Competition DG TREN as key issues
• Launch of the gas regional initiative in April
  alongside a gas roadmap conclusions paper

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The idea behind

• AIM foster the creation of regional gas markets
  as a stepping stone towards a single competitive
  market
• FOCUS trading at and between gas hubs and other
  issues impacting market integration
• e.g. transparency, network access
• SCOPE address the shortcomings identified by DG
  COMPs Energy Sector Inquiry Interim Report
• Market concentration, vertical foreclosure, lack
  of market integration, lack of transparency,price
  formation
• INVOLVEMENT ensure that all key stakeholders are
  involved
• the Commission, Member State governments, TSOs
  and other market operators (e.g. storage and hub)
  and other market participants (e.g. traders,
  shippers, suppliers, consumer organisations)

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What do we want to achieve?

• PRACTICAL OUTPUT
• Identify existing obstacles and potential
  solutions, to increase
• market liquidity
• trading activities and competition, increase
  number of active traders in the region
• TPA efficiency through harmonised TPA rules
  market oriented and cost-based offer of transport
  services and flexibility tools sufficient
  availability of transport capacities
• security of supply and competition through
  diversification of sources and sufficient
  availability of transport capacities
• ENSURE STRONG COORDINATION WITH THE OTHER RCCS AS
  A FIRST STEP TOWARDS SINGLE MARKET

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Scope
() Initially the North and North-West REMs will
be run jointly, i.e. under the lead of DTe (The
Netherlands). Once the first phase of the REMs
has been completed it is intended that the North
REM will revert to the leadership of BNetzA
(Germany) and will be separated from the North
West REM.
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Structure
EU COMMISSION
MADRID FORUM Overall forum for discussing
progress in progressing regional initiatives and
pan-European consistency

• ERGEG
• established Regional Co-ordination Committees
  (RCCs). Each RCC
• comprises regulators from the region
• has autonomy, adopts its own decision making
  process

STAKEHOLDER GROUP Wide participation including
market players Chaired by RCC (EC?) and used for
consultation
IMPLEMENTATION GROUP Includes TSOs, Market
Operators (where appropriate) This is the do-er
for each Regional Initiative Chaired by RCC
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Information Access to Documents Transparency

• www.ergeg.org/portal/page/portal/ERGEG_HOME/ERGEG_
  RI/Gas_Regional_Initiative

ERGEG website www.ergeg.org ? regional
initiatives
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Contact Persons
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ERGEG - Timetable
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3. Organisation of the SSE Region Rules of
Procedure

• List of relevant stakeholders to be involved
• National stakeholders (example Austria)
• national authorities Ministry of Economics and
  Labour, Competition Authority
• National industry
• TSO eg. OMV
• SSO eg. OMV, RAG,
• Hub CEGH GmbH
• Suppliers?
• Associations Austrian Association for Gas and
  District Heating Industrial Union Gas Heat,
  Federation of Austrian Industry
• European stakeholders
• GIE, Eurogas, EFET,

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3. Organisation of the SSE Region Rules of
Procedure

• Roles and Responsibilities
• RCC
• Formed into Regional Co-ordination Committees
• primary drive motivation
• Establishment and lead of regional projects ?
  including way of work, decision making,
  consulting stakeholders, convene Implementation
  Group/Stakeholder Group, involve Member State
  governments and EC
• Reporting and monitoring of progress
• Prepare/commission discussion papers, gather
  information, distil/develop conclusions/way
  forward, develop action plan
• ERGEG report to Madrid Forum
• Member State governments
• Relevant powers often rest with Member State
  government ? new national legislation may be
  needed
• political support is crucial
• EC
• Key role in supporting each gas REM project and
  helping to deliver objectives
• Co-Chair (of which group?)

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3. Organisation of the SSE Region Rules of
Procedure

• Roles and Responsibilities
• Implementation Group
• Agreed proposals need to be implemented in a
  practical and efficient way
• Can be invited to put forward proposals for
  solutions, actions
• Regular dialogue with RCC e.g. regular formal
  meetings

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3. Organisation of the SSE Region Rules of
Procedure

• Roles and Responsibilities
• Stakeholder Group
• Stakeholders views and input crucial for progress
• Stakeholders will be involved in definition of
  detailed objectives and timetable
• regulators will ensure full transparency and
  consultation
• formal and informal dialogue

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3. Organisation of the SSE Region Rules of
Procedure

• How to consult stakeholders?
• Consultation Paper circulated and published on
  ERGEG Website
• Bilateral Meetings
• Two-day meeting with public hearings of
  stakeholders, discussion

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3. Organisation of the SSE Region Rules of
Procedure

• Decision making rules
• - Voting criteria normally by consensus in RCC
  and IG. Only in special cases and if agreement
  cannot be reached voting by ERGEG weights (RCC)
  or EU weights (IG, by country). Dissenting
  positions officially recorded. No votes in the SG
• - Consultation. A consultation document should be
  issued by RCC by end June. Two-day session in
  September as a public hearing. Regulators chair
  the session and operators , stakeholders present
  their views on the proposed issues. Discussion
  may be solicited.

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3. Organisation of the SSE Region Rules of
Procedure

• Reporting to ERGEG TF GMI
• By contact persons
• Reporting to Madrid Forum
• By chairmen

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4. Priorities of SSE Region Priorities (1)

• 1) Monitoring of regulatory implementation in the
  countries, with particular reference to
• Implementation of Directive 2003/55, shortcomings
  and infringement procedures
• Steps undertaken to ensure compliance with the
  Regulation 1775/2205
• Scope and guidelines of Regulatory Authority
  powers and actions

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4. Priorities of SSE Region Priorities (2)

• 2) Survey and analysis of the regional market and
  its problems, particularly
• Current development of hubs and other trading
  activities in the region
• Development of the main physical and commercial
  gas flows
• Practical case studies of gas transportation
  through the region for specific profiles by a
  fictive shipper
• o RUS-SK-CZ-GER (Velke Kapusany-Waidhaus od. Hora
  Svate Kateriny)
• o RUS-SK-A-SI-I (Velke Kapusany-Goricia)
• o RUS-SK-A-I (Velke Kapusany-Tarvisio-I)
• o RUS-SK-A-GER (Velke Kapusany-Oberkappel)
• o RUS-PL-GER (Brest - Frankfurt/Oder)
• Current and expected infrastructure development
  and its regulatory framework

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4. Priorities of SSE Region Priorities (3)

• 3) Transparency requirements covering
• - Access to Storage Services
• - Hub Service

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4. Priorities of SSE Region Priorities (4)

• 4) Interoperability issues
• - Gas quality issues
• - Infrastructure interconnection agreements
• - Operational balancing

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4. Priorities of SSE Region Allocation of
responsibilities

• Co-Chairs to consult with national regulators,
  prepare (draft) consultation papers,
  questionnaires and Action Plan
• National regulators
• to define / liaise with stakeholders
• provide available data
• consult with national stakeholders
• discuss and approve drafts
• National regulators may volunteer
• to lead analysis on selected issues
• to host meetings
• TSOs/HOs/SOs to provide requested information,
  discuss and implement agreed Action Plan

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5. Timetable of SSE Region Deliverables NEW

• New Timing
• Draft and circulate consultation document mid
  June
• online approval of the consultation document
  30.6
• combined RCC/IG meeting 13.7
• Fact finding activity by regulators (compliance
  with directive and regulation, collection of
  basic market data), TSOs and others 1.7 - 31.8
• Public hearings and discussion 25./26.9
• Draft Action Plan circulation 10.10, approval
  31.10