ERRA Training Course on Introduction to the Regulation of Natural Gas Markets & District Heating. November 17-21, 2008 Budapest, Hungary

Transcription

1 ERRA Training Course on Introduction to the Regulation of Natural Gas Markets & District Heating November 17-21, 2008 Budapest, Hungary

2 Overview T he ERRA Training Initiative features a variety of junior to advanced level bi-lingual courses offered in traditional classroom and e-learning (online, distance learning). While maintaining its high teaching standard of regulatory and economic issues, the same topics are now tailored to address the educational needs of other government institutions and companies engaged in the energy sector. Instructors of the trainings are predominantly practicing and former energy regulators with significant and noteworthy energy regulatory experience and expertise. All training programs are dual language (English and Russian) and include preparatory homework, practical exercises, simulations, participant case studies and final exams. The Course ERRA is proud to announce its new training module titled Introduction to the Regulation of Natural Gas Markets and District Heating. The course will feature 4 days dedicated to the issues of natural gas regulation while the last day of the course will deal with the heat market and its regulatory models. Themes During the course the following broad themes will be addressed: Natural Gas: A general introduction into the gas value chain, including the technical, economic, organisational and industrial characteristics. A brief historic overview of the role of natural gas in the EU energy mix, the development of the EU gas market, the underlying industrial and policy strategies, both from producer an consumer perspectives. Regulating the gas value chain, specific features and regulatory dilemmas ο The TSO and DSO functions ο Gas storages, including seasonal storage, LNG terminals ο Tariff setting & cross border issues ο New infrastructures and the specific gas characteristics ο Restructuring and liberalization ο Security of supply District Heating: Introduction of district heating concepts and their regulatory issues District heat pricing and vulnerable customers Relevant EU Directives and the EU Policy Case Studies

3 Day 1 Day 2 Day 3 Day 4 Program Outline Natural Gas Markets Registration, Welcome & Course outline. Introduction value chain. Global picture and players. Geopolitical dimension Supply & Upstream (1): resources, quality, production, costs. Entering the value chain, bringing the product to the market. Coordination mechanisms, long term relations. The industry dimension and the role of governments. Supply & Upstream (2): Financing and Investments in production & infrastructures. Governments and financial institutes. Eurasian examples. Supply & Midstream: Infrastructures, Transmission, pipelines, the role of LNG. Industry facts and economics. Competition LNG vs. gas by pipeline Demand: the evolution of demand over time - global picture and specifics on EU, Southeast Europe and Eurasia. Factors affecting short term and long term demand for natural gas. Seasonality. Demand and its drivers by consumer groups: residential, industrial, electric generation, etc. interruptibility of consumption. Price elasticity: The Slovak case Balancing-flat- supply and -seasonal- demand. The role of storage. Interactive game Industry & Markets: the role of long term contracts. Take-or-pay, volumes, pricing & oil-indexation, flexibility, nominations, defaults, supply-security, destination clauses, transits. Industry and markets: Vertically integrated companies. Regulatory issues at a vertically integrated industry: licensing and monitoring; end customer tariff setting; network connection and its costs; Business Conduct Rules and consumer protection. Restructuring and liberalization I: the role of competition and (EU) competition law; the EU Gas Directives and the EU sector enquiry Restructuring and liberalization II: Tools for supporting new entry: e.g. gas and contract release programs and their effectiveness. Case study: Hungarian gas release program Restructuring and liberalization III: regional gas markets. Gas market designs: hubs, wholesale markets, price correlation. Restructuring and liberalization IV: gas trading in practice. The TSO function: transmission, system operation and balancing. Storage. Unbundling regimes. Regulation issues of restructured industries: I. Tariff setting and third party access rules to networks and storage. Exit-entry tariffs. Regulation issues of restructured industries: I.: Tariff exercise Regulation issues at restructured industries II.: Cross border trade, pipeline capacity allocation, transit, new pipelines, quality issues. Regulation issues at restructured industries III.: distribution and supply regulation Round Table discussion: current gas regulatory issues in the ERRA countries - participant presentations Case study: Development of the Hungarian Network Code Regulation issues at restructured industries IV.: Content and the approval process of Grid Codes, Commercial Codes and Business Conduct Rules. Security of Supply (2) ST & LT policy and approaches, the external dimension, strategic stocks, pipeline projects and exemptions. Subsidizing end user tariffs, vulnerable consumers

4 Day 5 Program Outline District Heating Markets Regulatory concepts and issues. National vs. local regulation (pros and cons). Municipal vs. private and PPP ownership structures. Regulatory treatement of heat and electricity from CHPs. Lithuanian case example. The role of the EU Directives and policy. Case study introduction Interactive session on heat pricing and vulnerable consumers. Wrap-ups, evaluation Course Faculty Team Course director will be Jacques de Jong (senior fellow of Clingendale International Energy Program - CIEP, former Dutch energy regulator). Faculty members will be drawn from the Dutch expertise, in and around Clingendael/CIEP, Regional Center for Energy Policy Research (REKK) and from the ERRA member regulators. Péter Kaderják, REKK Dick de Jong, Clingendael Institute Vidmantas Jankauskas, Former Regulator Denis Hesseling, Dutch Competition Authority Valdas Lukosevicius, Former Regulator Hans Marges, Tata Corporation Pálma Szolnoki, REKK Gyula Sztankó, Hungarian Energy Office Borbála Tóth, REKK Balázs Vándor, Gas de France Luc Werring, Clingendael Institute Harald Wüstrich, OMV Dragana Josimovic, Energy Agency of the Republic of Serbia, Serbia DE JONG, JACQUES, COURSE DIRECTOR Senior Fellow, Clingendael International Energy Program, The Hague, Netherlands Drs. Jacques de Jong was born in Hague in After completing the international economics in Erasmus University Rotterdam, he joined the foreign economic relations department of the ministry of economic affairs in At the time of the oil crisis he was transferred to the oil directorate in the energy department, where his main duties were directed to international oil and energy discussions. In 1980 Mr. de Jong became deputy director for Electricity, responsible for nuclear energy policies and coal. In 1994 Mr. de Jong became coordinator for energy distribution. In 1998 he was appointed director of the new Dutch Office for Energy Regulation, DTe. He was also active in European affairs, as a co-founder of the CEER (Council of European Energy Regulators) and as a co-chairman of its electricity working group. Since Mr. de Jong is continuing in non-executive functions and is as a senior fellow associated with the CIEP, the Clingendael International Energy Program.

5 Who Should Attend? Track I of the Course is only available to regulators. Track II is available to regulators and non-regulators such as ministry and local government representatives, utility companies, banking institutions, consulting companies etc. Each Track is limited to 30 participants so early registration is suggested! Certificate Attendance certificate will be issued to participants on completion. Objectives This course aims to provide a thorough introduction to the most important economic issues surrounding the creation and successful operation of gas and district heating markets. The purpose of this course is to introduce students to the design and operation of these markets both in theory and in practice. The faculty team will use a special methodology, including a combination of classroom lectures, case studies and discussions to ensure optimal examination of theoretical and practical aspects of the subject. Tuition Fee ERRA-Members: Complimentary (for one participant) Non-Member regulators: 1,500 Non-regulators: 2,000 Course Venue & Accommodation Best Western Hotel Hungaria**** 1074 Budapest, Rákóczi út 90, Phone: , Fax: bwhungaria.reservation@danubiushotels.com, Internet: For More Information For more information on the course, please contact the ERRA Secretariat at secretariat@erranet.org or by phone at Check our Website:

6 REGISTRATION FORM PARTICIPANT (Please Type Or Print In Capital Letters. As stated will appear in badge and lists) First Name: Company: Mailing Address: Postal Code: Country: Fax: TUITION FEES: Last Name: Title: City/State: Tel: (Euros) ERRA Members (1) Complimentary (1 participant) Non-Member Regulators (1) Euro 1,500 Non-Regulators (1) Euro 2,000 District Heating participants only (2) Euro 400 Includes accommodations for 5 nights, lunches and coffee breaks during the course. Those interested in the District heating module only qualify for reduced rate. Rate includes 1 night accommodation. Please indicate in which part of the course you wish to participate: Natural Gas Markets and District Heating (November 17-21, 2008) Natural Gas Markets module only (November 17-20, 2008) District Heating module only (November 21, 2008) Payment Methods: IMPORTANT: Registration without complete payment information will not be processed nor confirmed. Please do not send any values by mail. The ERRA will accept no liability for any kind of money loss. 1. By bank transfer. Please send us a copy of the Bank Transfer Receipt. When sending payment, please indicate participant s name and company ERRA s bank information: Name of Bank: CIB Bank Rt. City, Country: Budapest, Hungary Swift Code CIBHHUHB Account No. IBAN: HU Account Name: Energia Szabályozók Regionális Egyesülete (Energy Regulators Regional Association) 2. By credit card. Charge to: Visa MasterCard American Express o o I hereby authorize to debit from my credit card account the total amount of Euro. Card Number Expiration Date (Mo/Yr) Control Number (last three digits on back of your credit card) o Cardholder s Name I hereby accept the conditions stated in this form. Signature Billing address: Postal Code: City/State: Country: Tel: Cancellation Policy: Refunds of tuition fee, less Euro 100 administrative charge, will be applied to written cancellation requests received before October 17, No refunds will be given for cancellation requests received after October 17, All refunds will be processed only after the event closing date. ERRA Secretariat, Köztársaság tér 7, 1081 Budapest, Hungary Tel/Fax: (+36 1) , secretariat@erranet.org