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European Federation of Energy Traders
GIE annual conference 2008Bukarest, 23-24 October
Needs of the market participantswith respect to creating an integrated and competitive European Gas market
EFET Gas [email protected] Chairman
Stephan Ressl Madrid, 22.05.2008 2
What market players need
Predictability of regulatory framework: 3rd package most important and clear harmonised guidance on implementationIntegration towards a single European gas marketSystem investments (capacity optimisation) necessary with a European viewRegional approach necessary for pragmatic and technical reasons
TransparencyAccess to the system (capacity existing and new, tariffs, market rules, licensing)Published market based prices (balancing, spot, forwards) per areaData for the past, the present and the future as available – EFET to publish a list of
minimum requirements soon, jointly with other associations
Access to the systemCapacity available where necessaryCross border incompatibilityIntransparent balancing rules (Not market based and market should reflect system
stress)System should be as large as possible (several TSOs) and not one pipeline only
Stephan Ressl Madrid, 22.05.2008 3
Then market players could
Have confidence in stable and positive development and hence derive business
casesInvestments into energy business activities have long lead time (trading floor, affiliates,
or even power plants, pipelines and LNG terminals,..)
With confidence more market players will arrive on the sceneE.g. Horizontal diversification (oil, gas, electricity) and/or vertical (going downstream or
e.g. large customers getting more upstream)
Establish liquid traded markets with a sufficiently large physical market underneath
the Hub/exchange:NBP, a North West Continental one, EEX (EGT+Bayernet), Italian gas exchange (PSV
new), CEGH if regional, Iberian,..????
Stephan Ressl Madrid, 22.05.2008 4
Market pricing in EU
Stephan Ressl Madrid, 22.05.2008 5
Market pricing in EU - arbitrage 1
17,0217,98
19,93
19,32
18,97
21,80
24,72
Prices:
Summer 2006 in EUR/MWh
Stephan Ressl Madrid, 22.05.2008 6
Market pricing in EU – arbitrage 2
96,3195,92
55,00
26,80
57,25
21,20
42,00
Prices:
13 March 2006 in EUR/MWh
Stephan Ressl Madrid, 22.05.2008 7
Market pricing in EU
Current Hubs/Exchanges in the EU In some parts many In other parts none
CEE is rather iliquid for the
time beingNBP / ICE
PEG
TTF / ENDEX
EGT / EEX
CEGH
ZEE
PSV
GTF
Stephan Ressl Madrid, 22.05.2008 8
Multi - TSO integration potential
JV of EGT and Bayernet are
a good new example
Part of Grid
2007
Stephan Ressl Madrid, 22.05.2008 99
Market players’ needs – an independent study
Stephan Ressl Madrid, 22.05.2008 10
Market pricing in CEE – PWC study in GRI SSE
Stephan Ressl Madrid, 22.05.2008 11
Market pricing in CEE – PWC study in GRI SSE
