Dennis Hesseling (ACER) presents at the 1st Vienna Forum on European Energy Law, 2013

1. The completion of the internal
market and the way ahead –
ACER’s view
Dennis Hesseling
Head of the Gas Department, ACER
8 March 2013 - Vienna Forum - Wien

2. .Introduction ACER
.Infrastructure investment
.Framework Guidelines / Network codes
Overview

3. Therefore, ACER
.is NOT a European Energy Regulator
.… but plays a CENTRAL ROLE in the
institutional framework introduced by the 3rd
Energy Package
The Mission of ACER
“The purpose of the Agency shall be to
assist the [NRAs] in exercising, at
Community level, the regulatory tasks
performed in the Member States and,
where necessary, to coordinate their
action”.
Source: Regulation (EC) No 713/2009

4. Institutional set-up third energy package
NRA NRA NRA NRA
TSO TSO ISO ITO
ENTSO
ACER
European Commission

5. - Deadline set by the EU Council in 2011
What does this mean in practice?
- EU-wide network codes must be made legally
binding through the “comitology” procedure
- The TEN-E Regulation must be finalised and the
cross-border Projects of Common Interest (PCIs)
must be identified and funded
- The Regional Initiatives must be strengthened to
deliver the IEM region by region
The Internal Energy Market (2014)

6. How are we doing so far?
.3rd Package has been transposed and must be
implemented fully and effectively into national law
.EC must monitor and pursue infringements
.EU-wide network codes and market rules must be
developed and adopted as soon as possible
.National energy market designs need to become more
European to achieve market integration
.Voluntary regional initiatives and integration projects are
key and “pilot” for future network codes
.Monitoring is essential to indicate how energy markets
operate and to highlight where improvements are needed
6
Source: ACER/CEER Market monitoring report 2011

7. .Introduction ACER
.Infrastructure investment
.Framework Guidelines / Network codes

8. Planning Implementation
EU infrastructure investment: planning
and implementation
TSOs within Member State
National TYNDP
(binding, annual)
TSOs within Region
Regional investment plan
(non-binding, biennial)
ENTSOs
Community-wide TYNDP
(non-binding, biennial)
ACER
Opinion on draft
NRAs / ACER
Assess consistency
between the two plans
May recommend
amending either or both
NRAs
Monitor implementation
If not delivered by TSOs:
- Require TSO to execute
investment
- Organise tender procedure for
third party investment
ACER
Monitors implementation
May make recommendations to TSOs
and NRAs on implementation
“Community
aspects”

9. Energy Infrastructure Package (E+G)
Developing trans-European energy networks
TYNDP and Projects of
Common Interest (PCI)
- Based on Cost-Benefit Analysis;
PCIs are a subset of the TYNDP
Priority Areas
“Toolbox” to speed up
implementation
- Faster and more transparent
permitting processes; improved
cost allocation; incentives; financial
support (if/when required)
Investment Needs and
Financing Gap
Legislative proposal October 2011, aimed adoption mid 2013

10. .The EC establishes regional coordination groups
.Project promoters present projects to the regional groups,
which seek Member States’ approval and submit to ACER
.ACER submits its opinion on the project lists to the EC
.Decisions for adoption are taken by the EC
.ENTSOs submit to ACER & EC harmonised CBA
methodology
.ACER provides opinion on CBA methodology
.If project adopted, project promoter submits investment
request to relevant NRA(s) and specify cross-border cost
allocation
.The NRAs involved take joint decision about x—border
project and notify to ACER
.ACER only intervenes in case dispute between NRAs
EIP: who does what

11. .Introduction ACER
.Infrastructure investment
.Framework Guidelines / Network
codes

12. 12
EC defines Priority Areas
ACER develops Framework Guidelines (FG)
and submits them to the Commission
ENTSO develops Network Codes (NC)
ACER checks compliance of NC with FG
ACER recommends NC to EC for adoption
EC submits NC to Comitology
EC adopts NC which becomes binding
Developing Framework Guidelines
and Network Codes

13. NC
Gas Framework Guidelines and Network Codes
2011 2012 2013 2014 2015
FG/NC on Capacity Allocation Mechanisms (CAM)
FG
Commission Guidelines on Congestion Management Procedures
FG/NC on Harmonised Transmission Tariff Structures
FG/NC on Gas Balancing in Transmission Systems
WS
CG
EV COMITOLOGY
COMITOLOGY
NC
NC
EV
EV
COMITOLOGY
COMITOLOGY
FG NC EV COMITOLOGY
ACER ENTSOG EP - EC EV = Evaluation of Network Codes
FG
FG/NC on Interoperability Rules
FG

14. Regulatory
Approach
(3rd Package)
• New institutional
framework (ACER,
ENTSOs)
• Framework Guidelines
in priority areas defined
by the Commission
• Network Codes
developed by ENTSOs, to
be enforced by the EC
“Voluntary”
Implementation
(Regional initiatives)
• Pilot projects to be
implemented before
legally required
• Testing early
implementation of the
rules set up in the
Framework Guidelines
and Network Codes
• Identification of possible
issues
The Regional Initiatives process
complementary to the FGs and NCs process

15. Gas: Early CAM implementation projects
The promotion and facilitation of truly joint (cross-regional) CAM platforms is one
of the priorities of the Gas Regional Initiative in 2013
• CAM Implementation Roadmap for early implementation of CAM NC carried
out by ENTSOG and ACER, in cooperation with TSOs & NRAs
• Main aim to facilitate early implementation of CAM NC by:
 Promoting experience sharing and exchange of lessons learned between pilot projects
 Identifying good practices and critical issues of EU relevance
 Informing adequately all interested stakeholders
 Enabling ACER and ENTSOG to monitor the process, ensuring coherence of solutions
• Four pilot projects currently part of CAM Roadmap:
 PRISMA platform (involving 20 TSOs from 7 countries)
 Pilot projects for allocation of bundled capacity between Hungary-Romania, at Lasów IP
(Germany-Poland) and in Spain-Portugal interconnection
• Voluntary implementation has already started, ahead of mandatory
implementation deadline of the CAM NC, expected to be adopted on Q3 2013

16. Regional Initiatives: Way forward
• Stepping up pace towards the goal essential
• Despite progress in concrete projects, further
integration and convergence within and between
the regions needed
• Focus on areas which can contribute more to creation
of IEM, in particular CAM
• Commitment and engagement of all parties
(European Commission, ACER, NRAs, Member States,
TSOs, other stakeholders) essential
• ACER continue closely monitor progress, coordinating
and supporting where needed
• ACER invites all stakeholders to participate actively
in RI and give feedback about projects planned

17. Thank you for
your
attention
Thank you for your attention
Questions and answers
www.acer.europa.eu