June 2009


European Energy Regulators’ News

Issue: June 2009

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World Forum on Energy Regulation WFER IV Athens,
18- 21 October

- Mogg's Blog on WFER IV 
- confirmed speakers include:
Energy Commissioner Piebalgs, Consumer Commissioner Kuneva and many more distinguished speakers

- Next Steps in Implementing the 3rd Package  

- Implementing the 3rd Package: next steps
- Monitoring the implementation of the GGPLNG
- Energy Regulators' pledge to ensuring good quality of electricty supply

Press Release:
-  Implementing the 3rd Package: next Steps

Smart Grids workhop
- Conclusions of Madrid, Florence and Bucarest Fora

Region in the Spotlight
- Quarterly update of all regions

The big news this month is the adoption of the 3rd Package of energy liberalisation.

On 25th June, the (Environment) Council adopted the 3rd Energy Package.  The five legislative proposals were approved unanimously by the 27 Member States.  As a sign of their commitment to making the 3rd Package a success CEER/ERGEG published a “Next Steps" paper which is the focus of this month’s feature article. It names the 2 “pilot” projects in electricity and gas for the first EU-wide Network Codes, sets out the end-to-end process for developing Framework Guidelines and Network Code and explains how stakeholder expertise will be harnessed through “expert groups”.
The Feature Article also explains the timing of the entry into force and transposition of the Directives and when the Regulations shall apply.

Europe’s energy regulators have advocated for a long time that the existing laws (2nd Package) also need to be fully implemented. Last week, the European Commission initiated infringement proceedings against 25 Member States for failing to comply with the 2003 energy laws.

Madrid and Florence Forum Conclusions have been published by the European Commission. 

CEER published a FactSheet "Energy Regulators' pledge to ensuring good quality of electricty supply" which is a useful guide to their comprehensive 4th Benchmarking Report on the Quality of Electricity Supply.

With energy markets becoming increasingly global you need to know what is on regulators’ minds and we want to know your views.  Mogg's Blog on WFERIV gives you the chance to shape the debate at the October World Forum on Energy Regulation (WFERIV) in advance. Read about why Lord Mogg sign’s himself as “Mogg”, who put the “egg” into ERGEG. On  a (slightly) more serious note check out his blog http://moggsblogonwferiv.blogactiv.eu/ for the Regulators' low carb(on) diet from "G8 +" to Copenhagen, or how energy in Europe is getting smarter with smart grids and smart meters.

Implementing the 3rd Package - Next Steps

On 25th June, the 27 EU Member State unanimously adopted the 3rd Package. The 3rd Package is a complex suite of energy legislation, comprising five separate acts, that was agreed in record time (less than 2 years).  When implemented (i.e. within 18 months of its formal adoption), it will put in place a new cross-border energy regulatory framework that will enable a single EU energy market to develop.

In brief, the 3rd Package provides for:
(1) the strengthening of powers of national energy regulators, and of consumer rights;
(2) the creation of an Agency for the Co-operation of Energy Regulators (ACER);
(3) the establishment (for the first time) of EU-wide Network Codes in electricity and gas;
(4) regional cooperation obligations on TSOs and Member States and;
(5) effective unbundling.

Energy Regulators' "Next Steps" Paper
As a sign of their commitment to making the 3rd Package a success CEER/ERGEG published both a “Next Steps" paper and a dedicated Press Release (PR-09-08) .It reaffirms the original views in the ERGEG (March 2009) Conclusions Paper on how the 3rd Package should be implemented. Additionally, it names the “pilot” projects for the first EU-wide Network Codes and explains how regulators foresee the working arrangements for the new Agency for the Cooperation of Regulators (ACER).

“Pilots” named and the “end-to-end” process for Network Codes is set out
Grid connection for electricity
, and capacity allocation in respect of new gas infrastructure are named as the two “pilots” to test ERGEG’s envisaged “end-to-end” process for the development of Framework Guidelines and Network Codes. In addition, work will continue on other priority areas. Regulators propose that ACER develops the Framework Guidelines in a two-step process.This should include an initial Impact Assessment and a public consultation, and that the ENTSOs undertake an Impact Assessment under the supervision of ACER or the European Commission in developing the (potentially legally binding) Network Codes.

Stakeholder Expertise to be harnessed through Expert Groups
In addition to the standard public consultations, the regulators intend to call in expertise and technical knowhow in the development of Framework Guidelines through ad hoc “expert groups” where expert input is required. Expert Groups would comprise a small number of individuals best qualified to provide expertise, and the members should not represent the interest of any organisation or region.

Regional approach to the single EU energy market to be accelerated
The 3rd Package explicitly recognises the advantages of a regional approach. To achieve the full benefit of the ‘top down’ approach in the 3rd Package, and the ‘bottom up’ approach in the ERGEG Regional Initiatives, regulators strongly advocate that regional market integration is accelerated through the framework of the ERGEG Regional Initiatives.

When will the 3rd Package enter into force?
The Directives and Regulations will be published in the Official Journal of the EU in August 2009 and enter into force on the twentieth day following that of their publication. The Electricity and Gas Directives have to be transposed into national law 18 months after entry into force with the exception of the rules on unbundling of transmission, which are to be transposed after 30 months.

ACER needs to be up and running 18 months after entry into force of the Agency Regulation. Similarly, the Electricity and Gas Regulations shall directly apply 18 months after their entry into force and by that time, at the latest, the national Transmission System Operators are required to submit the founding documents for the new European Network for Transmission System Operators, one for gas and one for electricity to the Commission and ACER. By a maximum of eight months thereafter the ENTSO for both gas and electricity need to be put in place.

CEER/ERGEG Publications

Implementing the 3rd Package: next steps, 26 June 2009, (C09-GA-52-06a)
Proceedings of Events (see events section of website):
• CEER workshop on smart grids, 29 June 2009
• World Forum on Energy Regulation, Athens, 18-21 October

Calendar of current and future public consultations

Area Issue Consultation publication date
Electricity Input to Framework Guidelines for Energy Efficiency September 2009
  Input to Framework Guidelines on Joint Grid Planning, Infrastructure and Generation Adequacy September 2009
Customer Indicators for Retail Market Monitoring October 2009
Cross Sectoral

Work Programme 2010 consultation

September 2009

Coherence and Convergence issues in the Regional initiatives

November 2009

The standard period for ERGEG public consultation is 8 weeks. For further information (including ERGEG’s newly revised public consultation guidelines) visit the public consultations section of the website.   


See all dates of Regional Initiatives meetings (RCC, IG, SG) on the ERGEG online Calendar.  For example, the next SG meeting of the North-West region is in Paris on 9th June 2009 or the ERRA Summer School on an Introduction to Energy Regulation (13-17 July).  

The World Forum on Energy Regulation is the leading international conference on energy regulation, held only once every three years.  The upcoming World Forum on Energy Regulation IV, from 18-21 October,which is co-hosted by CEER and the Greek Regulatory Authority promises to be a major event. See the programme on www.worldforumiv.info.

Regional Initiatives Update

The European Energy Regulators' Newsletter presents Quarterly updates of the 7 electricity regions and 3 gas regions. For the months in between these quarterly updates, the activities in one region will be presented in the "Region in the Spotlight" section. For continued information on activities in each region, please consult the Regional Initiatives website and the regions' dedicated subpages.

Region in the Spotlight - quarterly update on all regions

In fulfilment of its promise provide a quarterly report on the Regional Initiatives, all regions are in the spotlights this month.  Key updates are as follows:

In terms of electricity balancing the Baltic electricity region published the final report “Balancing in the Baltic region” in April 2009 outlining the current state, common approaches and differences. Also in the field of balancing in the France-UK-Ireland electricity region the interim solution of the new TSO-TSO model over IFA went live on 3rd March 2009. Regulators now are to review experience with this interim system in  September 2009 before implementing the enduring solution. In the South-West electricity region cross-border congestion management was further improved as all relevant parties committed to implement the new IFE rules by 1st May 2009. However, implementation was delayed as TSOs asked for some changes in the new version of the rules. Regulators approved the rules after considering these last minute changes.

In terms of gas the South gas region focused on improving transparency at LNG terminals through the implementation of the relevant GGPLNG provisions. Regulators have analysed in depth the results of the GGPLNG monitoring exercise on transparency in this region in order to identify the areas for improvement. These results were presented at the 8th SG meeting (27th April) and stakeholders were asked to submit comments. Regarding investment in new infrastructure the North-West gas region continued its work on improving the regional investment climate. Investment principles have been consulted upon and further steps towards a regional framework have been agreed. A Virtual Test Case on investment is in progress including all relevant stakeholders and work is ongoing on the development of a Manual which gives a description of the procedures followed by each NRA within the North-West region when assessing proposals for new infrastructure investment. Du to the cut of Russian gas supplies in January 2009, the issue of security of supply was included in the agenda of the South South-East gas region’s meetings. The region firstly discussed and responded questions formulated by the European Commission on emergency arrangements and crises responses and continuously works on security of supply related issues in terms of preparing reports on enhancing regional market integration and eliminating bottlenecks.

International Activities


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European Energy Regulators' News is a free, electronic newsletter and covers the period from the previous issue to the date of publication. It is your gateway to the news from Europe’s energy regulators, press releases, public consultations, advice to the European Commission, news from the Regional Initiatives, and regulation and policy developments at a national level.

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