17 March 2014 was a day of celebration for CEER. It marked the date of the 100th meeting of the CEER General Assembly and Montenegro joining CEER as an observer.
This month we updated a memo on the regulatory aspects of investment conditions in European countries (a topic of interest to investors, regulators and regulated entities within and beyond Europe). We published the CEER position on the European Commission’s policy framework for climate and energy 2020-2030, (see our feature article).
Over the years, CEER’s dialogue with fellow regulators has become increasingly global. See the international section below to find out what hot topics we discuss with fellow regulators from around the globe. Finally, a reminder that 1 April is the deadline for papers for the ICER 2015 Distinguished Scholar Award.
Crafting the EU Climate and Energy 2020-2030 Policy Framework
What’s in the 2030 Climate and Energy Policy Framework? On 22 January 2014, the European Commission adopted a Communication on a policy framework for climate and energy for the period 2020 – 2030. In brief, it proposes: - reducing greenhouse gas (GHG) emissions by 40%; - an EU-wide binding target for renewable energy of at least 27%; - a new governance framework based on national plans; - renewed ambitions for energy efficiency policies; and - reform of the Emissions Trading Scheme (ETS).
CEER’s position CEER welcomes the European Commission’s 2020-2030 climate and energy policy framework and its recognition of the importance of regulatory investment certainty, and the value of coordinated approaches amongst Member States, as key contributions towards a more competitive, secure and sustainable energy system (see the CEER Position on the Commission’s proposed framework for Climate and Energy 2020-30).
Noting the absence of a strong consumer mandate (or references to consumer attitudes / benefits to consumers) in the policy framework, our position paper includes a focus on the consumer perspective alongside our thoughts on the main areas of the Commission’s policy framework.
The missing consumer perspective CEER strongly supports the Commission’s use of cost-effectiveness as a key criterion in formulating its policy proposals. CEER sees the need for urgent action to deliver pan-EU emissions reductions. There are considerable potential benefits to consumers associated with a low carbon energy system, including improved energy security, lower fuel costs, associated energy efficiency benefits and improved price stability. At the same time, CEER underlines that it is vital that the scale of investment necessary to deliver against climate goals is secured on a necessary, proportionate and cost-effective basis, so as to avoid excessive costs being passed through to consumers. CEER calls on the EU Institutions to ensure that the interests of consumers are considered ahead of final policy formulation.
Targets CEER welcomes the ambition and clarity provided by the Commission’s proposals for reducing GHG emissions by 40% and increasing the share of renewables to at least 27%. The flexibility inherent in combining the GHG reduction target with a RES penetration target set at EU level (as opposed to national-level targets) should allow the most cost-effective combinations of RES technologies, subsidy schemes, energy efficiency measures and GHG abatement options to be adopted. CEER encourages the Commission to engage with Member States to establish clear, national RES-E targets to help achieve regulatory certainty. We also call for continued efforts to harmonise RES schemes across Europe to support Member States’ cost-effective delivery of their individual targets. Energy efficiency and governance We welcome efforts to give a more significant role to energy efficiency and the policy framework’s focus on competition, affordability and security. We see the governance proposals as a major step towards greater integration of energy issues across Member States.
Public Consultations & Events
• Data management for better retail market functioning(Closing 23/05/2014)
• CEER Position on the European Commission's Policy Framework for Climate and Energy 2020-2030, 13 March 2014 • CEER Memo on regulatory aspects of energy investment conditions in European countries, 7 March 2014 Press Releases • Montenegro joins CEER (17 March 2014)
CEER has long established close collaboration with regulators in the EU’s immediate neighbourhood, in particular in the Eastern Partnership area and the southern Mediterranean in our belief that external dimension of Europe’s energy policy is of high importance. By promoting competitive, well-functioning and transparent markets, CEER contributes to a better understanding of EU energy market legislation beyond the EU’s borders. The focus of a recent CEER-MEDREG energy regulatory roundtable (see the brochure) was on regulatory challenges and infrastructure investment. The forthcoming EU-US regulatory roundtable (in May) will focus on issues such as shale gas, security, renewables, climate change and carbon issues as well as distribution and demand side impacts on network developments.