directorate general for energy and transport unbundling dg tren c-2 european commission dg energy...

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Directorate General for Energy and Transport Unbundling DG TREN C-2 European Commission DG Energy and Transport Belgrade, Seminar on Gas Industry Restructuring 04-05 October 2005

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Directorate General for Energy and Transport Overview

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Page 1: Directorate General for Energy and Transport Unbundling DG TREN C-2 European Commission DG Energy and Transport Belgrade, Seminar on Gas Industry Restructuring

Directorate General for Energy and Transport

Unbundling DG TREN C-2

European CommissionDG Energy and Transport

Belgrade,

Seminar on Gas Industry Restructuring

04-05 October 2005

Page 2: Directorate General for Energy and Transport Unbundling DG TREN C-2 European Commission DG Energy and Transport Belgrade, Seminar on Gas Industry Restructuring

Directorate General for Energy and Transport

Introduction: the provisions of the Directive

Major goal of DIR 2003/55 is to achieve unbundling of integrated companies

Art 9, 10 TSO unbundling Art 13, 14 DSO unbundling Art 15 combined operator Art 16, 17 unbundling of accounts

Page 3: Directorate General for Energy and Transport Unbundling DG TREN C-2 European Commission DG Energy and Transport Belgrade, Seminar on Gas Industry Restructuring

Directorate General for Energy and Transport

Overview

LegalUnbundling

FunctionalUnbundling

AccountingUnbundling

TSO + + +

DSOabove 100.000customers

Exemptionpossible

until 1.7.2007

+ +

DSObelow 100.000customers

Exemptionpossible

Exemptionpossible

+

Page 4: Directorate General for Energy and Transport Unbundling DG TREN C-2 European Commission DG Energy and Transport Belgrade, Seminar on Gas Industry Restructuring

Directorate General for Energy and Transport

Overall objective of unbundling

Ensure fair network access through: Separating the network business – natural

monopoly – from those activities of the vertically integrated companies, which compete on the market (supply, production)

Should be the underlying guiding rule when interpreting individual provisions.

Page 5: Directorate General for Energy and Transport Unbundling DG TREN C-2 European Commission DG Energy and Transport Belgrade, Seminar on Gas Industry Restructuring

Directorate General for Energy and Transport

Vertically integrated company Functional unbundling necessary if legally separate

company remains under „control“ Reference to merger regulation Control=majority of shares or de facto control Exemptions to legal and functional unbundling Application of the merger regulation (“control”) in

the context of the 100.000 customers exemption

Unbundling – applicability

Page 6: Directorate General for Energy and Transport Unbundling DG TREN C-2 European Commission DG Energy and Transport Belgrade, Seminar on Gas Industry Restructuring

Directorate General for Energy and Transport

Legal unbundling

In principle free choice of legal form Modification to standard supervision regime

might be necessary to comply with functional unbundling

Combined multi-sector network operator possible

Page 7: Directorate General for Energy and Transport Unbundling DG TREN C-2 European Commission DG Energy and Transport Belgrade, Seminar on Gas Industry Restructuring

Directorate General for Energy and Transport

Management unbundling

Applies to top management and operational management

Salary independent from supply company Restrictions on mobility and shareholding of staff Common services: exceptionally acceptable under

certain conditions Application to not legally unbundled DSOs: concept

of profit-centre

Page 8: Directorate General for Energy and Transport Unbundling DG TREN C-2 European Commission DG Energy and Transport Belgrade, Seminar on Gas Industry Restructuring

Directorate General for Energy and Transport

Decision making rights – Compliance

Within the scope of the approved financial plan: independence of network company

No day-to-day oversight In the absence of legal unbundling: far-reaching

decision making rights of the network department, without prejudice to the overall responsibility of the board

Compliance programme: contents - enforcement - monitoring/reporting

Page 9: Directorate General for Energy and Transport Unbundling DG TREN C-2 European Commission DG Energy and Transport Belgrade, Seminar on Gas Industry Restructuring

Directorate General for Energy and Transport

Implementation by Member States

Functional unbundling rules are “minimum criteria” - need further complementation under national law

Functional unbundling rules are very general – need further specification under national law

100.000 customers exemption should be handled in the light of the particular national circumstances

Page 10: Directorate General for Energy and Transport Unbundling DG TREN C-2 European Commission DG Energy and Transport Belgrade, Seminar on Gas Industry Restructuring

Directorate General for Energy and Transport

Accounting unbundling

No derogation possible Establishes transparency of cost-allocation Accurate cost allocation methodologies vital

to avoid cross-subsidies Regulators to play an active role

Page 11: Directorate General for Energy and Transport Unbundling DG TREN C-2 European Commission DG Energy and Transport Belgrade, Seminar on Gas Industry Restructuring

Directorate General for Energy and Transport

Thank you for your attention!Reference documents: Dir EC 55/2003 and interpretative note on unbundling

Contact: [email protected]; [email protected];