Implementation of the Electricity and Gas Directives.ppt by lovemacromastia

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									Implementation of the Electricity and Gas
Directives

- 2005 report
disclaimer: the views expressed in this presentation are
those of an individual Commission official, not those of
the European Commission as a whole.




       Directorate-General for Energy and Transport
Process in compiling
report
   Regulators’ submissions based on a
    standard structure
   Full consultation with stakeholders –
    over 40 responses received
   Close co-operation with DG COMP
    sectoral inquiry


       Directorate-General for Energy and Transport
General evaluation
- some positiives
   Efficiency benefits of market opening are
    confirmed
   Electricity prices are still 5-10% lower in real
    terms for most customer groups
   Investments are being made in new plant
    across the EU
   20 GW under construction now, 100 GW
    planned [according to Platts]

        Directorate-General for Energy and Transport
But obstacles remain

   Electricity                               Gas
    – some progress almost                      – major problems in many
      everywhere: but,                            MS
    – insufficient integration                  – gas cannot be easily
    – missing infrastructure                      moved around EU
    – unbundling of network                     – segmented markets
      operators incomplete                      – old capacity reserv-
    – inappropriate regulation                    ations not helpful
      of prices                                 – unbundling of network
                                                  operators incomplete



        Directorate-General for Energy and Transport
General ongoing
concerns
   Inreases in wholesale prices and effect on very
    large users
   Is the price formation mechanism transparent
    enough and producing sensible results
   What is the effect of emission trading
   Gas price/security of supply
   Complex network management, effect of wind
   Consistent powers of regulators - independence




        Directorate-General for Energy and Transport
Wholesale electricity
prices are increasing
           100


            90


            80


            70


            60
Euro\MWh




            50


            40


            30


            20


            10


             0
                 janv-04                juil-04                 janv-05              juil-05

                       France(Powernext)          Nordpool            EEX\EXAA average     NL(APX)
                       Spain(OMEL)                UKPX                Italy                Slovenia(Borzen)
                       Poland(Gielda)             Czech (OTE)




                       Directorate-General for Energy and Transport
                  So are gas prices
           50

           40
Euro/MWh




           30

           20

           10

            0
                oct-03                  avr-04         oct-04                  avr-05               oct-05

                         UK day ahead               Zeebrugge day ahead             TTF day ahead
                         UK forward Q1 06           ZB forward Q1 06                TTF forward Q1 06
                         UK forward Q1 07           ZB forward Q1 07                TTF forward Q1 07
                         Large User price UK        Large user price Belgium        Large user price NL
                         Large User price Germany


                                    Directorate-General for Energy and Transport
Switching: some
progress for electricity
                90%
                                      Cumulative since market
                80%
                                      opening
                70%

                60%
  % switching




                50%

                40%

                30%

                20%

                10%

                 0%
                             IE




                                                                 EE
                            DE
                       FI




                                       HU




                                                    FR




                                                                 GR
                             IT




                                                    PT
                                                    PO
                      SE
                            UK



                            DK




                                       ES

                                                    BE
                                       NL




                                                                  SI
                                       LU




                                                    LT



                                                                 CZ




                                                                              MA
                                                                              SK
                                                                              CY
                                       AT




                                                                 LV
      large and very large industrial             small-medium industrial and business
      very small business and household




                Directorate-General for Energy and Transport
 Competition and market
 integration - Electricity

      LV EE IE
                           SI                              HU             AT        PL        UK

      FR BE LT        LU        SK         CZ   DE ES NL        IT                       NORDIC




100              90                   80         70                  60        50        40        30

                                     Market share of 3 largest producers (%)

     Electricity markets are still largely national
     Not enough physical capacity is made available
     More co-ordinated grid management needed for a
      European market

                 Directorate-General for Energy and Transport
Regional markets are a
necessary step : to get from this

 France                                      Germany/Austria
                                                                    EoN
                                  EDF                               RWE
                                  VPP                               Vattenfall
                                  CNR                               Verbund
                                  SNET                              EnBW
                                  other                             other
           poor                                          moderate
 BE\NL
                             Electrabel
                             NUON
                             Essent
                             EON
                             SPE
                             other
           poor
          Directorate-General for Energy and Transport
to this…

 Total W. Europe                                  EDF
                                                  EON
                                                  RWE
                                                  Electrabel
                                                  Vattenfall
                                                  Verbund
                                                  other

 ………..or better
   Directorate-General for Energy and Transport
Conclusions

   Global energy prices are increasing
   Environmental objectives are also
    becoming more important
   Despite some success, a European
    market is some distance away
   European industry cannot afford half
    measures relating to competition

       Directorate-General for Energy and Transport
Are new measures
needed?
   Regulators should further improve
    matters relating to:
    – tariff harmonisation ( espec. gas)
    – balancing rules and market design
    – capacity allocation rules
   Regulators should already have a high
    level of powers overs these subjects
    for both gas and electricity
       Directorate-General for Energy and Transport
Are new measures
needed?
   Some arriving soon: Gas Regulation
    1775/05 and guidelines on congestion
    management for electricity




       Directorate-General for Energy and Transport
Are new measures
needed?
   New Directives\Regulations?

   YES if it is clear that competition is not
    functioning well in current framework

   Commission GREEN PAPER to be
    issued in March 2006 will open debate
    on this theme
       Directorate-General for Energy and Transport
Are new measures
needed?
   Sectoral Inquiry – five key issues:
    – Market Concentration
    – Vertical Foreclosure [network and supply],
                      [generation and supply]
    – Lack of market integration
    – Lack of transparency
    – Price formation issues
   DG COMP interim report was issued 16
    February – consultation process
        Directorate-General for Energy and Transport
Timetable
2006
 Country-by country investigations, new
  report end-year
 Infringement cases, non conformity of laws
  and other measures
 Conclusion of sectoral inquiry


2007
 Decision about new proposals

      Directorate-General for Energy and Transport
Thank you for your
attention

http://europa.eu.int/comm/energy
/electricity/index_en.htm

     Directorate-General for Energy and Transport

								
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