Title: The EUs Third Energy Package European Code Development
1The EUs Third Energy PackageEuropean Code
Development
- UNC Transmission W/S - 4th December 2008
2The Third Package Towards a single EU Market
- On 19th September 2007 the EU published its
proposals for a Third Energy Package. - The Third package builds upon changes that have
not been enacted under the first two gas and
electricity Directives. - The Package is designed to facilitate single,
liberalised EU markets in gas and electricity. - Despite the UKs already relatively liberalised
regime, the package still has broad reaching
consequences for the UK.
3Progress So Far
- In order to be adopted the package must go
through the EUs main legislative procedure, the
co-decision process under which the European
Parliament and the European Council must agree
common text. - In July 2008 the European Parliament adopted all
5 reports on the 3rd Package (to the Gas
Regulation/Directive, Electricity
Regulation/Directive, Agency Regulation). - These reports include all amendments that the
Parliament would like to see made to the
Commissions original proposals, and formally
ends the European Parliaments involvement in the
first reading stage of the co-decision process. - The Council have reached political agreement in
October 2008, though not fully in alignment with
the Parliament. It is therefore anticipated that
the second reading stage will start in early
2009, with a view to finding a common position by
May 2009.
4Creation of Network Codes
- The legislation proposes the creation of
- An Agency for the Cooperation of Energy
Regulators (ACER). - A European Network of Transmission System
Operators (ENTSOs) - For gas this would see current GTE evolve into
ENTSO(G). - European Network Codes.
- The codes should be broadly based upon
- Security Reliability
- Data Exchange Settlement
- Interoperability
- Emergency Operation
- Capacity Allocation Congestion
- Trading
- Grid Connection Access
- Transparency
- Balancing
- Harmonised Transportation Tariff Structures
- Network Energy Efficiency
5Implementation of Network Codes
- The way in which the proposed European Network
Codes would be written and implemented, including
their potentially binding nature, is currently
being debated within various EU fora.
ERGEG/CEER consultation paper 21 Oct 2008
- Proposes the creation of high level Framework
Guidelines by ACER, - Detailed codes, drafted by ENTSO-G.
- The ACER will then review approve / disapprove.
- The codes would co-exist with natl codes and are
likely to be binding. - Public Conference Brussels, 11th December
- Consultation responses requested by 31st
December 2008.
6Delivering Network Codes
7Define Code Project Plan
time
First draft Project Plan
Project Plan Consultation
Finalisation of Project Plan and launch
documentation
To Code Proposal Development Process
Invitation from Commission or code requirement
established in AWP
Project Plan inc launch documentation
8Code Proposal Development Process
time
- Stakeholders Joint Working Sessions
- to meet and discuss with stakeholders
- be responsive, having due regard to opinions
- justifying acceptance or rejection
- ENTSOG chaired
EFET
IFIEC
Inputs, analysis proposals
To Code Finalisation process
Project Plan including launch documentation
First draft Code
Consultation
Stakeholders Joint Working Sessions
Inputs, analysis proposals
Eurogas
OGP
ENTSOG Endorsement
Others
9Code Finalisation Process
time
Process consultation responses
Proposal refinement
Stakeholder Opinion/ Support
Final Proposal Report
Consultation response inputs
To ACER
Stakeholder interaction clarification
- Stakeholder input comprises opportunity for
- all stakeholders to deliver final opinion
- associations to support or reject
10Network Code Development Timeline
Preparatory work and some parallel working
essential to deliver codes in 12 months