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ERGEG Conclusions PaperKey Issues

Walter Boltz, E-ControlBratislava, April 5th 2006

Electricity Regional InitiativeRegional Coordination Committee CEE

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Starting Point for ERI

- Markets are to a large extend national in scope – very low and

insufficient cross border competition

- Too low liquidity in many wholesale markets

- No real customer-choice in retail markets

- Market design and practical procedures in wholesale and retail

markets differ substantially

- Level of transparency does not meet standard of mature markets

and market participants‘ requirements

Still significant efficiency potentials to be Still significant efficiency potentials to be

realized in the market !!realized in the market !!

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Summary Potential Priority Issues

- Wholesale market development/integration

- Congestion Management

Capacity calculation (flow based, netting)

Capacity allocation (rules)

Auction supervision

- Cross border balancing

- Transparency and information management

- Market design and operations (data formats, deadlines, etc.)

- Cross border investments – incentives & remuneration

- Legal and regulatory framework, cooperation

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ERI Organizational Setup - Recapitulating

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CEE Regulators‘ „Cross-Border“ ResponsibilitiesCapacity allocation and congestion management Hungary Poland Slovakia Germany Austria Czech Rep.

Capacity assessment

Propose a methodology for cross border capacity calculation TSO TSO TSO TSO TSO TSO

Approve a methodology for cross border capacity calculation TSO Reg. TSO Reg. Reg. Reg.

Capacity allocation

Set / approve rules for general access to cross border capacity Gov. TSO Reg. TSO Reg. Reg.

Ex-ante decision / approval of allocation mechanism (e.g. auction rules) Reg. Reg. indirectly TSO N.A. N.A. Reg.

Monitoring/supervision of the allocation and results Reg. Reg. /TSO Reg. Reg. Reg. Reg.

Ex-ante decisions on existing long term capacity reservations Gov. N.A. Gov. N.A. N.A. Reg.

Dispute resolution

Ex-post decisions on complaints Reg. Reg. Reg. Reg. Reg. Reg.

Ex-post decisions on existing long term capacity reservations resulting from complaints Reg. Reg. Court Reg. Reg. Reg.

Transparency and information management

Definition of information required for the wholesale market Reg. Gov./TSO Gov. Reg. Reg. with market parties Reg.

Approval and monitoring of the transparency Reg. Reg. Gov. Reg. N.A. Reg. Partially

Definition of information management standards (ringfencing of information, etc.) Reg. TSO Gov. Reg. Regional gov. Gov./Reg.

Balancing market

Market model and design definition Gov. Gov./TSO Gov. TSO Gov./Reg. Reg.

Market model and design approval, including clearing & settlement concepts Gov. Reg. Gov. Reg. Reg. Reg.

Supervision and monitoring of the clearing process Gov. TSO N.A. Reg. Reg. Reg.

Market operations issues of relevance for the CEE project

Definition of market processes and model Gov. Reg. (no formal basis) Gov. TSO Reg. with market parties Reg.

Approval of market arrangements and market rules Gov. Reg. (no formal basis) Gov. N.A. Reg. Reg.

Monitoring Reg. Reg. (no formal basis) Reg. Reg. Reg. Reg./Comp. Author.

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CEE RCC & Implementation Groups – Parties and Stakeholders to be Involved

- Member States / Governments

- European Commission

- TSOs

- Market operators / Power Exchanges

- Market participants

- Customers

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Organization

RCCRegulatory Authorities of the CEE

Region

IG-TSO-Market operators-Market participants

SG-TSO-Market operators-Market participants-Stakeholders/Customers

CEE Member StatesGovernments

Workstreams on specific issuesInvolvement of parties according to their responsibilites and expertise

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Thank you for your attention !

Walter BoltzChairman

Energie-Control GmbHAustrian Energy Regulatory AuthorityRudolfsplatz 13a, A-1010 Vienna, Austria

Tel: +43-1-24724-201walter.boltz@e-control.atwww.e-control.at