Editorial Interested in what shape EU energy regulatory policy will take over next 10 years? The “must-read” is the ACER “Energy Regulation: A Bridge to 2025” consultation paper. It sets out the European energy regulators’ common strategic thinking on the expected developments and challenges of energy markets. Moreover it seeks stakeholders' reactions to a proposed suite of regulatory actions to ensure that energy markets operate to the benefit of EU consumers paper (see the feature article below).
Retail energy markets are the "buzz words" this summer in Europe. In our CEER response to the Commission’s public consultation on retail markets, we underscore how meters, smart grids and data management are driving Retail Energy Market changes. Our 2014 CEER customer conference (18 June) will debate “Retail Energy Markets – from advocacy to action” Register online. The theme is particularly timely as the European Commission’s retail market communication is expected in June.
The impact of the Ukraine crisis on security of supply topped the EU Gas Regulatory (Madrid) Forum (6-7 May), during which CEER explained the key role of storage played in security of supply and that LNG regasification has potential but is under used due to high LNG prices (see the CEER Press Release and presentations). Later this month (20-21 May) regulators, Ministries and the European Commission meet again, at the Florence Forum, to discuss electricity regulation and policy issues. See the international section for what tops regulators’ own global agenda at this month’s EU-US regulatory roundtable.
CEER’s EU Sustainable Energy Week event (26 June) will focus on "pull factors" in achieving a low carbon system – this time on the role of consumers and regulators in enabling demand-side flexibility.
Regulators’ strategic thinking on energy challenges and regulatory actions – “Energy Regulation: A Bridge to 2025”
What’s in the Bridge to 2025 Green Paper? The document outlines the European regulators’ common thinking on the • energy sector challenges in the coming decade • possible policy and regulatory responses for the period 2014-2025 • implications for governance.
The paper is structured to tackle the energy sector trends and regulatory actions across 4 main areas: • Electricity wholesale markets • Gas wholesale markets • Infrastructure investment • Consumers, retail markets and the role of DSOs
What do regulators propose? In the paper, ACER calls for significant improvements in the design of electricity and gas markets and for a robust regulatory framework so as to have well functioning wholesale and retail markets.
Lord Mogg, the Chairman of ACER’s Board of Regulators and CEER President, said: “Europe’s Energy Regulators have set out their strategic thinking to ensure that markets really are fit for purpose in 2025. Our key conclusions are that - in addition to the rapid implementation of the present Target Models - we need more flexibility to accommodate the high levels of intermittent renewables generation; strengthened cooperation by network operators and 24-hour switching".
The paper sees a key role for Distribution System Operators as market facilitators, and a review of the governance arrangements of European Network Transmission System Operators (TSOs) and of improved regulatory oversight of power exchanges.
What’s next? This paper is a second step to define future priorities, building on the many (37) responses received to a pre-consultation paper issues in late 2013. The current paper seeks stakeholders’ reactions on expected developments in the gas and electricity sectors, on the increasing importance of infrastructure, on trends in retail markets and on a suite of proposed regulatory actions to ensure that energy markets operate to the benefit on European consumers. The current consultation runs until 16 June 2014. A conclusions paper will issue in September 2014.
Public Consultations & Events
• Data management for better retail market funcitoning (Closing 23/05/2014) Visit our websiteto be updated on our future consultationsandevents.
• CEER response to European Commission public consultation on retail markets • CEER Press Release: Impact of Ukraine crisis on security of supply tops the Madrid Forum agenda (PR-14-03)
For the third year running, CEER will host (with the support of the European Commission) an Eastern Partnership workshop with the regulatory authorities of the Eastern partnership countries. This year it takes place in London on (27 - 28 May) on the subject of building regional electricity markets. Also this month is the EU-US Energy Regulators’ roundtable in Boston, USA, (13-14 May).