Recent Developments in the EnC Gas Sector Janez Kopač | Director ECS 10th Gas Forum, 6 October 2015, Ljubljana

Energy Community Secretariat

Energy Community Secretariat

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Overview

− Legislative Reforms − Regional initiative - CESEC + − Market Integration − Outlook

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Energy Community Secretariat

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Primary legislation

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3rd Package compliant Primary Law adopted [* prepared by ECS] Draft Law exists [* prepared by ECS]

* no progress towards adoption slow progress towards adoption

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Energy Community Secretariat

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Secondary legislation

* Acts adopted [ * drafted with ECS support ]

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Some acts adopted [ * drafted with ECS support ] Drafting started Consultancy tendered

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Energy Community Secretariat

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On our gas agenda

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Support in drafting primary and secondary legislation, compliance assessment

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Recent dispute settlement cases −

Serbia (unbundling) 

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Bosnia and Herzegovina (NRA, MO, unbundling, TPA) x

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Interconnectors - Interpretative Note approved by Ministerial Council; support to CPs (Ukraine)

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Stress test follow up: ECS/CPs participated in consultation processes on Reg 994/2010, TYNDP and LNG/storage strategy

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WSs (with ENTSOG) on Network Codes

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Gas market integration CPs-MS –study ongoing

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Penetration of gas – follow up on TAP project (exemption prolongation; certification)

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CESEC – translating the MoU into practical progress ECS activities to monitor and facilitate CESEC: 

List of measures necessary for implementing market related CESEC preconditions developed & communicated to the CPs

 Country missions targeting discussions of national implementation steps with stakeholders envisaged

 Ministries to coordinate  All relevant stakeholders to be involved

 Continous progress reporting  as member of the CESEC meetings, in line with the MoU tasks  via published standard reporting  at EnC and EU Gas Fora Energy Community Secretariat

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CESEC – translating into practical progress MoU criteria

National relevance

3rd package compliance

1ary and 2ndary legislation Public procurement

Removal of obstacles - cross cutting

NRA independence legal & functional DSO unbundling TSO unbundling & certification Ensure non-discriminatory TPA Implement coordinated CAM – join platforms | reverse flow

Removal of obstacles - market related

Tariff review – avoid pancaking Implement market based BAL Ensure free flow of gas – Import/export fees | transit contracts | supply contracts | optimise capacity use

Interoperability

Ensure interoperability (ref. Gas Interoperability NC or IAs)

Regulatory investment incentives

Also required by Infrastructure Regulation

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Progressing in real terms towards integration

 Cooperation agreement PL –UA TSOs signed targeting bundled capacity allocation  IA UA- HU signed 05/2015  IAs UA-SK | UA-ROM under way  CPs being part of GRI SSE

i.e. real term Third Package Network Codes and market integration BUT a legal basis is needed!

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Energy Community Secretariat

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Outlook

− To be continued: ECS assistance in drafting secondary/primary legislation − TSOs unbundling (1 June 2016) and their certification − Implementation of Infrastructure Regulation347/2013 − Revisied Regulation 994/2010 / Joint Act SoS 2016 − Involvement of DSOs − Reforming the Energy Community (dispute settlement rules, civil society, parliamentary)

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Thank you for your attention! [email protected] www.energy-community.org

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Background Slides

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CESEC – the origin Stress test 2014  high vulnerability of the region in case of Russian supply disruption

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CESEC – missing infrastructure and market elements for security of supply − 6 priority projects to increase SoS via strengthened interconnection

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TAP

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Interconnector GR-BG (IGB)

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Interconnector BG-SRB

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System reinforcement BG

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System reinforcement ROM

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LNG Terminal HR

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LNG evacuation system towards HU

MoU signed in July 2015 −

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To be financed by the market −

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EU | AL | AT | BG | FYROM | GR | HR | HU | IT | ROM | SI | SK | SRB | UA Role of IFIs such as the EIB or the EBRD may be considered

Pending provisions to be implemented

− Strengthening cooperation and coordination among different stakeholders Energy Community Secretariat

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CESEC – infrastructure meets market From the CESEC MoU: 1. “Effective regulatory framework […] including regulatory incentives is a prerequisite” 2. Committment to „promote market integration and wellfunctioning markets” by: a.

“effectively and fully implementing all EU gas sector legislation”

b.

“removing remaining legal, regulatory and commercial barriers to physical and commercial gas flows”

c.

“particularly across borders, via efficient use of interconnections and effective gas network access”

3. „ ACER, the European Commission or the Energy Community should act as a facilitator to any regulatory issue of a cross-border nature” Energy Community Secretariat

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