EU Energy Market in Gas and Electricity State of Play and Implementation

Transcription

1 EU Energy Market in Gas and Electricity State of Play and Implementation Matthias Altmann, Ludwig-Bölkow-Systemtechnik Antton Rönnholm, Centre for European Policy Studies CEPS European Parliament, ITRE Committee, Brussels, 24 June 2010

2 Aim and Scope Assess the Opening and Completion of the Internal Energy Market Undertake a sectoral review of implementation and transposition of the 2 nd Energy Package, discusses the 3 rd Energy Package Assess the Road Ahead and recommend needed Policy Steps

3 Concentration in Electricity Wholesale Markets Moderate to high concentration throughout Europe Very highly concentrated (HHI above 5000) Highly concentrated (HHI ) Moderately concentrated (HHI )

4 Switching Rates in Electricity Markets Annual switching rates by volume

5 Electricity Wholesale Price Correlation Correlation increasing, but still low Average daily power price, /MWh EEX Nord Pool IPEX Powernext OMEL

6 Concentration in Retail Natural Gas Markets

7 Switching Rates in Natural Gas Markets Annual switching rates by number of customers

8 Natural Gas Transport Grid and LNG

9 Natural Gas Wholesale Price Correlation

10 Status of implementation of 2 nd package 1/2 Infringement procedures Access to cross-border network infrastructure Lack of information provided by TSOs and capacity allocation systems Procedures for consumer complaints Regulated end-user prices Powers of NRAs and effectiveness of regulation Variation! The role of regional initiatives and cooperation 7 in electricity, 3 in gas: overlap Functional/regional division NRAs and MS role and guidance

11 Status of implementation of 2 nd package 2/2 Elements influencing investments and infrastructure planning Authorization Tariffs and Regulatory certainty/stability Free riding TSO and DSO ownership and system operation Electricity: public ownership remains strong: 18/26 Gas: less public and less OU: 9/24 Scope for efficiency, but no detailed data! DSOs: exemptions and lack of knowledge Technical standards and harmonization of network access conditions Electricity: UCTE Gas: EASEE-gas since 2002 and GTE website

12 Regulated Prices Concentration Unbundling TSO/ Ownership DSO/Legal Gas Electricity Households Non-Households (OU/total of TSO) (% of all DSO) retail wholesale wholesale Gas Electricity Gas Electricity Austria High Moderate 0/7 0/ Belgium Very high Very high Very high 0/1 0/ Bulgaria G+E G+E Very high 0/1 0/ OU Cyprus E E Very high Czech Republic Very high High 0/1 1/ Denmark G+E G+E High Very high 1/1 1/ Estonia G+E E Very high 0/1 0/1 4 3 Finland Moderate 0/1 1/ France G+E G+E Very high Very high Very high 0/2 0/ Germany High Moderate High 1/18 0/ Great Britain High Moderate 1/1 1/ OU 100 Greece G+E G+E Very high Very high 0/1 0/1 0 0 Hungary G+E G+E High High Moderate 1/1 0/ Ireland G+E G+E Very high High Very high 0/1 1/ Italy G+E E Moderate High High 1/3 1/ OU Latvia E Very high Very high Very high 0/1 0/ OU Lithuania G+E G+E Very high Very high High 0/1 0/ Luxembourg Very high Very high 0/1 0/ Malta E E Poland G+E G Very high Very high Moderate 1/1 1/ Portugal G+E G+E Very high Very high 1/1 1/ Romania G+E G+E High 1/1 1/ Slovak Republic G+E Very high Very high Very high 0/1 1/ Slovenia Very high Very high 0/1 1/ Spain Very high High High 1/8 1/ Sweden Moderate 2/3 1/ The Netherlands High Very high Moderate 1/1 1/ OU 100+ OU

13 Policies of the 3 rd package Effective (ownership) unbundling TSO consolidation will lead to bigger units with a stronger financial base? Danger: Parts of TSOs disguised as DSOs to avoid implementation DSOs retain legal unbundling: incentives to introduce smart grids and meters? Ownership of less relevance once 3 rd package transposed Cooperation and Infrastructure planning NRAs and MS to cooperate on regional level TSO cooperation: ENTSO-E and ENTSOG are in operation Creation of of Ten Year Network Developments Plans Brings real obligations and tools

14 Policies of the 3 rd package Target Model: Future Market Model Grid connection and capacity allocation already under way Network codes made binding through comitology: level of specificity important Finally convergence towards a common market design? EP needs to monitor the process Powers of regulators: Gained more tasks and more effective and harmonised tools Is ACER a truly European regulator and with sufficient powers? Implementation timetable No clarity yet, but most probably cumbersome in several MS

15 Policy challenges ahead Harmonisation or coordination of renewables support To what extent the levels; models and legal framework can be coordinated? Transparency in financial products A new regulatory framework needed for energy trading EU policies to promote energy infrastructure projects What are the possibilities and policies for EU to make things happen? Electricity exchanges and market integration Vision of regional markets lacking, a need for a Common Allocation Office? Gas market development Towards more liquid spot markets: the future of Long Term Contracts?

16 Recommendations Too early to talk about a 4th Package RES problems in access to the grid: need to revise DSO unbundling? Time will show whether the powers of ACER are adequate Derivatives markets need a regulatory framework, but avoid overdoing it Lisbon: new possibilities in energy Enhanced cooperation and Cooperation à la Schengen: will the MS take the chance and in which fields? Infrastructure investment Harmonisation/alignment of support systems leads to a more effective outcome Reflect what the EU can and should do in this field: budgets are limited goal: reduce consumption additional infrastructure investments?

17 Place du Congrès 1 B-1000 Brussels T: F: matthias.altmann@lbst.de patrick.schmidt@lbst.de Daimlerstrasse 15 D Munich/Ottobrunn T: F: