Improving market functioning in the Energy Community Janez Kopač Director
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1 Improving market functioning in the Energy Community Janez Kopač Director 17 Energy October Community 2018, 31 st Secretariat Madrid Gas Forum 1
2 3 rd Package implementation overall Directive 2009/73/EC & Regulation (EC) 715/2009 as adopted by MC Decision 2011/02/MC-EnC Implementation deadline 1 January 2015 (31 December 2020 for Georgia) Network code on Interoperability and Data Exchange* and Guidelines on Congestion Management Procedures** (1 October 2018) Third Package compliant gas law adopted Draft gas law, adoption procedure advanced Draft gas law exists *PHLG Decision 2018/02/EnC on adopting Commission Regulation (EU) No 2015/703 of 30 April 2015 establishing a Network Code on Interoperability and Data Exchange Rules **PHLG Decision 2018/01/PHLG-EnC on amending Annex I to Regulation (EC) No 715/2009 on conditions for access to the natural gas transmission networks, as amended at EU level by Commission Decision (EUl of 24 August 2012 and Commission Decision (EU) 2015/715 of 30 April
3 IMPLEMENTATION IN FOCUS WESTERN BALKAN CPS Albania: towards access to gas Albgaz, a national emerging TSO, unbundled and certified late 2017; capacity building ECS support to Ministry and NRA fyr of Macedonia : new law adopted Preparation of secondary acts with ECS assistance and investments in grid Bosnia and Herzegovina: no state gas law Regulatory framework of entities decoupled Serbia: foreclosed market Well developed regulatory framework on paper no TPA on the interconnector in practice ECS infringed Serbia for lack of unbundling Serbia Russia IGA brought in comfort with the acquis upon ECS intervention Gastrans applied for the exemption 3
4 IMPLEMENTATION IN FOCUS EASTERN PARTNERSHIP CPS Ukraine: post 2020 transit still uncertain Stalemate in unbundling of Ukrtransgaz from Naftogaz; Selection of a foreign partner for the TSO on hold PSO Public Service Obligation Resolution forecloses retail market even further Progress on application of gas transmission code ECS mediation Joint EBRD-ECS project to establish a gas exchange Moldova: some progress under horizon Little progress in unbundling (2 nd package, derogation valid until ) VestMoldTransgaz sold to Transgaz Majority of regulatory acts drafted with ECS assistance, waiting for adoption Georgia: massive mobilisation to reform gas market soon to materialise Draft law and market concept ready ECS assistance 4
5 Licensing 1. Gas and electricity 2. Mutual recognition of licenses o o for supply to wholesale customers (trade) based on common minimum requirements 3. Abolishment of local establishment requirements 4. Enforcement powers of NRAs 5. Taxation [for CPs only] Geographic scope - Title III countries Status quo: PENDING CESEC MC transpose implement Title III countries 5
6 Legal grounds are in place Article 41(1) of the Energy Community Treaty Customs duties and quantitative restrictions on the import and export of Network Energy and all measures having equivalent effect, shall be prohibited between the Parties. [...] Requires mutual recognition Forbids local establishment requirements as disproportionate and excessive Principle of reciprocty applies to Parties to the Treaty 6
7 Structure of retail gas prices in 2017 The share of energy component ranges from 67% in MKD to 73% in UKR The share of network charges for consumers in Kyiv 10%, for those in Belgrade 21% Name Energy of the Community Event Secretariat 7
8 New acquis and cooperation patterns In pipeline for adoption: - NC CAM and NC TAR 28 November REMIT ENTSOG Energy Community External cooperation platform New PECI list in 2018 On a broader level Reciprocity clause; switch off/on clauses Treaty amendments try to resolve deficiencies 2030 targets New network codes direct implementation? SoS Regulation? 8
9 Thank you for your attention! 9
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