CEER has delivered to the European Commission its conceptual vision of the European Gas Target Model (GTM). The GTM is the conclusions paper of an extensive CEER consultation process.
In a nutshell, the Gas Target Model rests on the following pillars:
• Well-functioning wholesale markets in all of Europe
• Connecting these functioning wholesale markets
• Secure supply patterns that ensure gas flowing to Europe
• Ensuring that economic investments take place
See 2-min video of Walter Boltz
Time frame of the Gas Target Model
The GTM, a non-binding vision which has broad stakeholder support, contains a suite of recommended steps to achieve an EU gas market by the 2014 deadline set by the European Council, as well as dealing with longer term issues.
Is the GTM about 3rd Package implementation or something more?
Full implementation of the 3rd Package (and entry-exit systems in particular) is necessary but not sufficient for a European internal gas market. Regulators consider that more may be needed to achieve the single market. This is why regulators want to review their national markets and look at what further measures could improve liquidity and integrate markets.
Well-functioning and connected wholesale markets are key
A core objective is to enable functioning wholesale markets where they do not yet exist and for these wholesale markets to be connected closely. A well-functioning wholesale gas market could be based on a series of entry-exit zones which may be national or in some cases also cross-border in scope, where there are liquid hubs so a sufficient volume of gas is traded, and a sufficient amount of trades occurs. These liquid market hubs need to be connected through sufficient interconnection.
Regulators commit to reviewing market liquidity and the degree of integration
NRAs will explore (by the end of 2012) measures to improve market liquidity and the degree of market integration. These measures may be of a national nature, but could also include joint actions with neighbouring markets, for example improving the efficiency of interconnection arrangements via implicit allocation or the creation of market areas or trading regions.