The feature this month is on ensuring the design of Europe’s (wholesale) energy markets is fit for purpose.
See the International section below for news of the latest CEER-ECRB customer workshop. Click on the Training section below for information on our forthcoming gas regulation course.
Coming next! The joint ACER-CEER Market Monitoring Report (MMR) with the latest data and trends covering electricity, gas, consumers and retail markets will be released on 30 November. Register now for this MMR event or follow it via live web streaming.
Interactive session at the CEER-ECRB workshop
Feature: Designing a fit-for-purpose market for Europe
The European Commission has announced (in their 2016 work programme) a suite of revisions and reviews of the European legal framework for Europe's energy market covering energy efficiency, security of supply and renewables. It also includes (following its summer 2016 consultation) an initiative on a new energy market design.
Challenges One of the challenges is ensuring liquid and competitive wholesale markets. Another is integrating significantly greater amounts of variable renewable power. The Commission's proposals on the market design of Europe's wholesale markets will need to addresses the complex issues of market integration across Europe, how to make markets more flexible to accommodate greater levels of renewable energy, and how to ensure a secure system which can deliver energy when and where it is needed.
Let's have retail markets fit for renewables and renewables fit for the market Regulators share the European Commission’s aim to link wholesale and retail markets, to have an Internal Energy Market fit for purpose for renewables, energy efficiency, smart and flexible technologies and infrastructure (see the ACER-CEER response to the Commission's consultation).
CEER is a strong advocate for bringing RES into the market, for a more harmonised approach to RES support schemes, and for rewarding flexibility in the market. Jointly with ACER, we underline the necessity of Third Package implementation and for any improvement in the energy market design to build upon the important results achieved in Third Package and REMIT implementation.
What’s in ACER-CEER joint response to the Commission’s consultation? We outline our shared vision on several aspects related to the future of the electricity sector:
• How important it is to enhance the functioning of electricity markets by bringing renewables (RES) into the market and linking wholesale and retail markets.
• We must move away from national interventions. To benefit European security of supply, ACER and CEER have long advocated an EU approach for measures on generation adequacy and network planning. • There must be greater participation in energy markets by facilitating a proportionate market-based approach to flexibility (an issue that CEER and ACER are working on jointly), including demand response, self-consumption, and emerging market innovation. The pivotal role of distribution networks in future interactive and flexible markets must be addressed.
• The importance of embedding robust and transparent governance to support an effective market, with clear roles and responsibilities for all energy actors. • A fit-for-purpose market design must be developed to put consumers at the centre and which allows the regulatory framework and market rules to adapt to future developments.
A number of suggestions put forward by regulators require legislative changes and are therefore presented to Europe's policy makers for consideration in future legislative proposals. We look forward to contributing to forthcoming discussions on these and related issues, including supporting the European Commission on bills and advertising, the comparability of offers, and incentivising Distribution System Operators.
At the joint CEER-ECRB customer workshop (12 November), regulators from Europe and the Energy Community addressed retail market functioning, barriers to entry and alternative dispute resolution issues.