INTEGRATION OF EU ENERGY MARKETS

Jorge Vasconcelos

Council of European Energy Regulators

GTE Autumn Conference 2003Paris, October 22, 2003

VERTICALLYINTEGRATEDMONOPOLIES

VERTICALLYINTEGRATEDMONOPOLIES

MARKETREGULATION

COMMANDAND

CONTROL

RATEOF

RETURNREGULATIONNETWORKS

WHOLESALE /RETAIL

MARKETS

INCENTIVEBASED

REGULATION

VERTICALLYINTEGRATED

NATIONALMONOPOLY

NETWORKS

EUROPEANINTEGRATION

“EUROPEANIZATION”

LIBERALIZATION

COMPETITORS

REGULATION

EUROPEANMARKET

1988 89 90 91 92 93 94 95 96 97 98 99 00 01 02 2003

LE

GIS

LA

TIO

NR

EG

UL

AT

ION

WHITEPAPER

TRANSIT

PRICETRANSPARENCY REGULATION

CROSS-BORDER

2nd GAS DIR.

2nd EL. DIR.

1st ELECTRICITYDIRECTIVE

1st GASDIRECTIVE

LACK OF TRANSMISSION CAPACITY

IN PARTICULAR, CROSS-BORDER

INTERCONNECTION CAPACITY

1.

THE MISSING STEPS:

LACK OF TRANSPARENCY IN

NETWORK ACCESS CONDITIONS

INCLUDING NETWORK ACCESS TARIFFS AND

CONGESTION MANAGEMENT

2.

THE MISSING STEPS:

LACK OF TRANSPARENCY IN THE

TECHNICAL OPERATION OF

INTERCONNECTED SYSTEMS

3.

THE MISSING STEPS:

LACK OF ROBUST, DEEP AND LIQUID

ORGANISED ENERGY MARKETS IN

MOST GEOGRAPHICAL AREAS

4.

THE MISSING STEPS:

LACK OF TRANSPARENCY AND

PREDICTABILITY CONCERNING RULES

APPLIED TO THE APPROVAL OR

REFUSAL OF MERGERS AND

ACQUISITIONS IN THE ENERGY FIELD

THE MISSING STEPS:

5.