September 2010


European Energy Regulators’ News

Issue: September 2010

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- ACER and CEER 2011 work programme

- See calendar of next workshops

- ACER 2011 Work Programme
- ERGEG revised recommendations for comitology guidelines on gas congestion management procedures
- Status Review of the Implementation of EC Good Practice Guidance for Billing
- Status Review of End-User Price Regulation

Public Consultations
-  see calendar of 6 current public consultations

Region in the Spotlight
-  Quarterly update

-  ICER awards

On 13 September, CEER launched a public consultation on the draft 2011 Work Programme of the European Energy Regulators. It sets out 7 priorities for the year ahead. The consultation runs for a standard 8-week period until the 8th November. For completeness, it includes both the CEER and the likely ACER deliverables. The standalone ACER work programme was later published on 24 September following formal submission to the EU institutions (Commission, Council, and Parliament).  See the Feature article on the ACER and CEER priorities in 2011.

In addition, there are currently 5 other public consultations (the ones on draft Framework Guidelines include initial impact assessments) running.  This includes one on Pilot Framework Guidelines on Gas Balancing (until 28th October and workshop on 12 October). There is another assessing capacity allocation mechanisms (CAM) and congestion management procedures (CMP) for effective access to gas storage (deadline 9 October 2010 and public workshop on 30 September). We are also consulting (until 10 November 2010) on Framework Guidelines on Capacity Allocation and Congestion Management for Electricity.  The consultation on Pilot Framework Guidelines on Electricity Grid Connection closed on 24th September.

ERGEG, as advisory group to the European Commission, helps the Commission prepare draft legislative proposals.  ERGEG is seeking feedback on its draft Comitology Guidelines on Fundamental Electricity Data Transparency (consultation deadline is 28 October and public workshop is on11 October). This month, we submitted to the Commission our ERGEG revised recommendations on comitology guidelines on gas CMP, and our evaluation of comments to the public consultation.

ERGEG has published 2 reports on customer issues: a Status review of the Implementation of European Commission Good Practice Guidance for Billing, and a Status Review of End-User Price Regulation as of 1 January 2010.  The latter shows that end-user price regulation continues to exist in significant number of countries.

At the 18th Madrid Forum (27-28 September) ERGEG made 5 presentations on ten-year network development plan; on our final Framework Guideline on gas Capacity Allocation Mechanism and also on Balancing; on LNG Capacity Allocation Mechanism and on wholesale energy trading licenses in the EU.

There is a quarterly update of the regions of the Regional Initiative. 

Further afield, the winners of the inaugural ICER Distinguished Scholar Awards were announced at the World Energy Council in Montreal this month (see international section).

 ACER and CEER work programme priorities in 2011

CEER Public consultation on 2011 Work Programme
For the 2nd year running, the European Energy Regulators are publicly consulting on the draft Work Programme for the year ahead. The idea is to focus on those issues having been prioritised not only by the regulators but also by stakeholders. Responses to the draft 2011 Work Programme are welcome, using an online questionnaire, by the 8th November deadline. 

What does it cover – CEER, ACER or both?
2011 will be a year of transition for the European energy regulators as the Agency for the Cooperation of Energy regulators (ACER) becomes fully operational (March 2011). The draft 2011 work programme includes both the CEER and the likely ACER deliverables so as to give a complete picture to stakeholders and facilitate their planning. The standalone ACER work programme was later published (24 September) following formal submission to the EU Commission, Council, and Parliament. 

Priorities and stakeholder engagement in 2011
The draft Work Programme sets out 7 priorities areas for 2011.  Regulators will continue to prioritise issues such as: smart grids and smart meters; quality of electricity supply; renewables and energy efficiency; financial services; gas storage and LNG; and retail market monitoring. Furthermore, European energy regulators will continue to strengthen their international cooperation with other regulators, including through the Energy Community of South East Europe, the Mediterranean working group for electricity and gas regulation (MEDREG) and the International Confederation of Energy Regulators (ICER).

As well as the timing and outputs, the Work Programme indicates for each deliverable the different possibilities for stakeholder interaction (e.g. public consultation, workshop or Florence/Madrid/London/Bucharest stakeholder forum).

What will ACER focus on?
The ACER Work Programme was formally submitted on 23 September to the European Parliament, the Council and the Commission, as required by the ACER Regulation (EC) No. 713/2009.  ACER’s priorities in 2011 are:
- Framework Guidelines for Network Codes, covering high priority areas defined by the European Commission and considered especially critical to the completion of the Internal Energy Market (IEM);
- Opinions on the compliance, with the corresponding Framework Guidelines, of the Network Codes developed by the European Networks of Transmission System Operators (ENTSOs) for electricity and gas respectively;
- Opinions on the draft statutes, list of members and draft rules of procedure of the ENTSOs, in order to allow these associations to become fully operational, given their central role in developing network codes;
- Opinions on the ENTSOs’ 10-year Network Development Plans, as greater cross-border capacity and coordinated infrastructure planning are essential for a true IEM; and
- Decisions on cross-border congestion management or third-party access (TPA) exemptions, upon a joint request from the concerned NRAs or when these fail to reach an agreement.
- It will also be a priority in 2011 for ACER to organise its monitoring functions, to publish an assessment of the National Reports, and a status review of the Regional Initiatives.

Which Framework Guidelines?
A total of 8 Framework Guidelines for Network Codes are envisaged for completion in 2011:
- Capacity allocation and congestion management
- Grid connection
- Operational security
- Balancing
- Capacity allocation mechanisms
- Balancing rules
- Harmonised transmission tariff structures
- Interoperability


Press Release:
•  ICER - presentation of the ICER distinguished scholar awards in Montreal, (16 September 2010)
• ERGEG revised recommendations for comitology guidelines on congestion management procedures,
• Status Review of the Implementation of European Commission Good Practice Guidance for Billing, (E10-CEM-36-03)
• Status Review of End-User Price Regulation as of 1 January 2010, (E10-CEM-34-03)
• ERGEG publishes the Evaluation of comments to the revised recommendations for comitology guidelines on congestion management procedures ( E10-GWG-67-04)
• The Agency for the Cooperation of Energy Regulators (ACER) 2011 Work Programme

 (see Events section of website for the new calendar of next workshops) :
•  Workshop on CAM and CMP for gas storage, 30 September, Brussels
•  Draft GGP on regulatory aspects of smart metering for electricity and gas, 8 October 2010, Brussels
•  Joint ENTSO-E & ERGEG Workshop on fundamental electricity data transparency draft comitology
    guideline, 11 October, Brussels
•  Framework guideline on gas balancing, 12 October, Brussels
•  Framework guideline on electricity capacity allocation and congestion management, 18 October,

Calendar of current and future public consultations

Area Issue Consultation
publication date
Gas Guidelines of Good Practice on CAM & CMP to storage facilities Jul - Oct 2010
  Input to the Framework Guideline on gas balancing rules Aug - Oct 2010
  Existing transparency requirements for natural gas Sep - Nov 2010
  Framework guideline on gas transmission tariffs TBD
Electricity Pilot framework guideline on electricity grid connection Jul - Sep 2010
  ERGEG advice on comitology guideline on electricity transparency Sep - Oct 2010
  Framework guideline on capacity allocation and congestion management for electricity Sep - Nov 2010
  Framework guideline on operational security / system operation TBD
Cross Sectoral CEER 2011 Work Programme Sep - Nov 2010
  CEER response on interdependencies with other markets TBD

The standard period for ERGEG public consultation is 8 weeks. See the public consultations section of the website.   


See all dates of Regional Initiatives meetings (RCC, IG, SG) on the ERGEG online Calendar.  

Regional Initiatives Update


Region in the Spotlight - quarterly update on the regions

 The Baltic region published the "Final Report on Transparency in the Baltic Energy Markets” in June 2010. Furthermore work will start on the power exchange transparency report, based on NordPool Spot rules. With respect to capacity calculation, market based congestion management rules should be introduced by 2011. The harmonised congestion management and capacity allocation methods between Baltic countries will include a common method towards Russian and Belorussian TSOs.

In the Central-West electricity region, in terms of intraday calculation two bilateral projects are being developed between France and Germany and between Belgium and the Netherlands. In parallel, TSOs launched a new project (the NWE intraday project) with their Nordic and English colleagues. This project and its interactions with the two bilateral projects and with the Orientation Study drafted by the CWE TSOs are under discussion between TSOs, PXs and regulators. TSOs and PXs have confirmed a launch date of 9 November for the CWE-Nordic Interim Tight Volume Coupling.

In terms of capacity calculation in the Central-East electricity region the flow-based capacity calculation method has been delayed due to insufficient results in the course of the test runs. Next dry runs are now planned for autumn 2010. The central allocation office is preparing a detailed update of the project roadmap for the testing and implementation period, which will be closely coordinated with the regulatory authorities. The long-term explicit capacity allocation will in a second step also be based on the flow-based calculation. Regulators are urging TSOs to start, in a first phase, the daily allocation based on the flow-based model elaborated so far.

At the end of May 2010 the TSOs of the Central-South and the Central-West regions – together with Swissgrid – signed a Memorandum of Understanding (MoU) for having CASC as single explicit auction operator for the two regions, comprising the Swiss borders, starting from 2011. The MoU foresees full harmonisation (one single set of rules) from 2012 on.

The France-UK-Ireland electricity region’s 2010-2012 action plan focuses on regional coordination of longer-term explicit auctions on IFA, Moyle, Britned and East-West Interconnector. In terms of day-ahead allocation the priority lies on the coupling between the France-UK-Ireland and the Central-West regions. Britned will have day-ahead implicit auctions from the start of its operation in early 2011, a requirement from its exemption decision.

In the South-West electricity region a proposal from the MIBEL Board of Regulators on a coordinated long-term product for the Spanish-Portuguese interconnection (FTR) was submitted to the Governments. The power exchanges are doing preparatory work in the context of the Price Coupling of Regions (PCR). On balancing the TSO-TSO model implementation in MIBEL is ongoing and TSOs will develop an extendable enduring multi-TSO model for the region.

The key projects in the South gas region are two coordinated Open Seasons to assess market needs for new interconnection capacity and allocate this new capacity between France and Spain. See the press release of 16 July (on ERGEG, CNE and CRE website) of final results of the Open Season 2015 project.

International Activities

 Lord John Mogg, ICER President, announced the winners of the first annual International Confederation of Energy Regulators (ICER) Distinguished Scholar Awards, during the World Energy Congress (WEC) in Montreal. The theme was “The Impact of Renewable on Energy Regulation”. In the “developing countries” category, the winner was MEDREG.  In the “next practices” category, the winner was Daryl Biggar (an economist at ACCC, Australia).

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