CONTENTS

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CONTENTS

• One example each
• Regulatory issue
• Standard-setting issue
• Why these issues are important
• What is ECEs interest/role
• Procedures, method of work, etc.

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REGULATORY ISSUE

• Opening up and liberalization
• of
• natural gas and electricity markets

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ENERGY POLICY PARADIGM SHIFT

• Prior to mid-1990s
• Characterized by economies of scale
• Inherent monopolies (natural gas electricity)
• Government guidance/supervision
• Post mid-1990s
• Market liberalization in buying and selling
• Transport and distribution infrastructure
  inherent monopoly

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EU COMMON RULES

• Market opening (timing level of opening)
• Unbundling (Chinese walls, legal, ownwership)
• Third party network access
• Tarification, transparency
• Regulatory systems

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PROFOUND IMPACT

• Liberalization re-regulation
• Market and industry structures
• Nature of competition
• How business is conducted
• Behaviour of governments
• Problems concerns

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UNECES ROLE/INTEREST

• Assess understand transformation/ potential
  implications
• Dialogue and exchange experiences
• Transfer EU country experience to non-EU
  countries
• Approach
• Reports, studies, etc.
• Addressed by Cttee, WP, Ad Hoc Experts, Workshops
• 2 UNECE Gas Centre Task Forces
• EU Directives
• Transportation issues

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PERFORMANCE TO DATE

• Significant market opening
• Incomplete liberalization (EU)
• 17 countries notified
• 5 under active investigation (anti-competitive
  behaviour)
• Efficiency gains/lower prices?
• Concerns
• Consolidation
• National champions
• Regulatory diversity

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STANDARD SETTING

• United Nations Framework Classification
• For
• Fossil Energy and
• Mineral Reserves and Resources

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WHAT IS THE UNFC?

• Classification system for Fossil Energy and
  Mineral Reserves Resources
• Framework to harmonize existing terminologies
  definitions
• Simple, universally applicable scheme for
  classifying and evaluating
• Flexible system for application at global,
  national, industrial, institutional or financial
  level

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UN Framework Classification (UNFC)
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WHY THE UNFC?

• Enhance international communications
• Support business processes improve efficiency
  of resource management
• Facilitate international financial reporting
• Enhance security of energy supplies
  (transparency) associated financial resources

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HISTORY OF UNFC

• Initiated in 1992
• 1997 ECOSOC resolution for mineral and solid
  fuels (60 countries tested or using)
• 2004 ECOSOC resolution for Fossil Energy and
  Mineral Resources (to apply system worldwide)
• Develop one common global code for energy
  minerals (incl. definitions, specifications,
  guidelines)
• Plus institutional governing structure to keep
  UNFC relevant updated

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STAKEHOLDER PARTICIPATION OR SUPPORT

• Governments, incl. G7 Ministers of Finance and
  Governors of Central Banks, NGOs and business
  community/private sector
• International organizations/ associations, incl.
  IAEA, IEA, IEF, OPEC, WEC and WPC.
• Professional associations incl. AAPG, CRIRSCO,
  EFG, IASB, IOSCO, IVSC and SPE.

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AHGE BUREAU

• Norway (1), Russian Federation (1) US (1)
• NGO (1) private sector (2)
• OPEC (1)
• Combined Reserves International Reporting
  Standards Cttee (CRIRSCO) (1)
• Society of Petroleum Engineers (SPE) (1)

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UNFC Governing Structure