Energy regulators propose regional solutions to security of supply at the Madrid Forum
Brussels, 20 April 2015
• Complete the Internal Energy Market • Prevent first, mitigate later • Regional approach to security of supply is crucial
Today, the Council of European Energy Regulators (CEER1) presented at the Madrid Forum2 (20-21 April) its proposals for enhancing security of supply in Europe.
CEER underlined the completion of the Internal Gas Market as a crucial basis for any EU security of supply strategy.
CEER proposes market-based solutions where possible and, importantly, regionally coordinated plans to security of supply rather than the currently used purely national focus.
Prevent first, mitigate later
Walter Boltz, Chair of the CEER Gas Working Group, advocated using market-based instruments including regional coordinated plans as long as possible (during the prevention phase), before moving into the mitigation (state intervention via emergency plans) phase:
“Market-based instruments should be used to guarantee continuity of supply as long as possible. One important measure is to make sure the Balancing Network Code is properly implemented, so that the value of security of supply could be incorporated in a market-based balancing regime”.
Regional approach to security of supply is crucial
“Member States are no longer the only appropriate reference point for a security of supply policy within the internal market”, explained Mr Boltz.
Within the regions coherent risk assessments, preventive action plans and emergency plans need to be elaborated and properly coordinated. This process could be facilitated if the European Commission designed one standard template and if all regional plans were available in English.
Increased role for the European Commission
Mr Boltz stressed that the European Commission has an increasing role to play in security of supply in supporting competent authorities, regulators and network companies’ efforts towards greater cross-border cooperation. He suggested that the European Commission could appoint a security of supply mediator should competent authorities fail to agree upon regional plans.
CEER considers gas storage (and LNG) as having an important role in delivering security of supply, but cautions against a one-size fits all approach for strategic storage. Following its public consultation on storage3, CEER will soon publish its regulatory vision for the gas storage market.
See CEER’s response to the European Commission’s recent public consultation on the review of the Security of Supply Regulation4.
Ends
Notes for Editors:
The Council of European Energy Regulatory (CEER) is the voice of Europe’s national energy regulators. Its members and observers are the independent statutory bodies responsible for energy regulation at national level. Visit www.ceer.eu.
The European Gas Regulatory Forum (Madrid Forum), a bi-annual meeting organised by the European Commission, discusses Europe’s internal gas market issues. Chaired by the European Commission, the participants include representatives from Member State governments, transmission system operators, gas suppliers and traders, consumers, network users, gas exchanges, CEER, ACER and national regulatory authorities. At the 27th Madrid Forum meeting (20-21 April 2015), CEER presented regulators’ views on gas storage, LNG and on security of supply (see the regulators’ presentations at the 27th Madrid Forum).
CEER ran a public consultation from October – December 2014 on its draft vision on regulatory arrangements for the gas storage market. CEER also held a workshop in Budapest to engage Central and Eastern European stakeholders. The results of this consultation and CEER’s updated gas storage vision will soon be published.
