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1st RCC Meeting – Region South-South East June 1, 2006, ROME

1st RCC Meeting – Region South-South East June 1, 2006, ROME. Part I – General Issues. 1. Opening. Welcome Approval of the Agenda. 1.1 Approval of the Agenda – Part I. 1.1 Approval of the Agenda – Part II. 2. ERGEG Regional Initiative.

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1st RCC Meeting – Region South-South East June 1, 2006, ROME

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  1. 1st RCC Meeting – Region South-South East June 1, 2006, ROME

  2. Part I – General Issues

  3. 1. Opening • Welcome • Approval of the Agenda

  4. 1.1 Approval of the Agenda – Part I

  5. 1.1 Approval of the Agenda – Part II

  6. 2. ERGEG Regional Initiative • ERGEG published its gas roadmap for consultation in November 2005 • The roadmap sets out ERGEG‘s 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 ERGEG‘s 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

  7. The idea behind • AIM: foster the creation of regional gas marketsas 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 COMP´s 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)

  8. 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

  9. 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.

  10. 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

  11. 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

  12. Contact Persons

  13. ERGEG - Timetable

  14. 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, …

  15. 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?)

  16. 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

  17. 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

  18. 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

  19. 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.

  20. 3. Organisation of the SSE Region – Rules of Procedure • Reporting to ERGEG TF GMI • By contact persons Reporting to Madrid Forum • By chairmen

  21. 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

  22. 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

  23. 4. Priorities of SSE Region – Priorities (3) • 3) Transparency requirements covering: • - Access to Storage Services • - Hub Service

  24. 4. Priorities of SSE Region – Priorities (4) • 4) Interoperability issues: • - Gas quality issues • - Infrastructure interconnection agreements • - Operational balancing

  25. 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

  26. 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

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