Investment (I1)

GRI NW, ERGEGErik Rakhou, project leader

26 November 2009

Contents

• Project goal• Project in a nutshell/milestones• Draft policy advice • Discussion on 2010 agenda

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Our goal by end of 2009: tangible policy advice on how to enhance

regional investment climateThe path to secure and integrated market from Roadmap GRI NW:

“The (path to) investment climate should be such that investments in capacity are sufficient and (efficient and therefore) timely and persistent physical congestion is avoided. (…) Investments should facilitate gas supplies from diverse sources to meet the need for secure gas supplies”.

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The project and its main milestones in a nutshell

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The 7 gaps found in the regional investment climate (1)

National level

• Recommendation 1: Roll in (partially) the new investment in the existing asset base and/or allow shorter depreciation periods and/or increase the WACC to bear the risk, in proportion to TSO risk burden. Other means exist which need debate first (see chapter 3).

• Recommendation 2: encourage national regulator and TSOs to find an agreement respecting each other’s equal position and stimulate this debate on a regional level by sharing good regulatory practices.

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Longwin

Mid-longwin

The 7 gaps found in the regional investment climate (2)

Regional level - transparency• Recommendation 3: Make tariff calculation

methodology (present and future) transparent.

• Recommendation 4: Make elements transparent that increase intention to investment at regional and national level (including market integration and security of supply).

• Recommendation 5Recommendation 5:: Close co-operation between (adjacent) TSOs and NRAs in the organisation and timing of allocation processes.

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Mid (quick?)

win

Quickwin

Midwin

The 7 gaps found in the regional investment climate (3)

Regional level – co-ordination and communication

• Recommendation 6: Organise regular ‘3-lateral’ regional co-operation meetings on cross-border investments.

• Recommendation 7: Ex-post review of cross-border investment projects at regional level every 2 years.

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Quickwin

Quickwin

(Surprising?) tangible policy advice on how to enhance regional investment

climate

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Focus on “2010 agenda”:projectleaders view next steps

3-track approach to naming action and owners for 7 gaps (subject to final report and support SG):

1. Implement quick wins in 2010: • Regulators seem main action-owners• Use cross-border opportunities for co-operation provided by 3rd package

and existing rules & structures (eg GGPOSP)

2. Implement mid/long term wins from 2011 onwards: • Action-owners will depend on final analysis on potential national and any

other barriers

3. Explore innovative ways to bring actions to reality• Consider checking 7 gaps in ongoing real projects • Consider special action-focused ministerial-rcc workshop, once analysis on

barriers has been finalised

THANK YOU FOR YOUR ATTENTION

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Annex

Slides for potential questions

Participating Shippers Experience

• Shippers participating in the Virtual Test (alphabetical)

A big Thank You to all of them for their support

NB – not same order as Shipper A to Shipper J for anonymity

Organisations involved

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Criteria core group for quality of final tangible policy advice

1. “Based on findings in Journal, Manual;”Legitimate”, “within spirit GRI and 3rd package”;“sufficient feet in the practice to get “buy-in”

2. “Comfort”;”Reasonable”;“Balanced” with all GRI stakeholders considered

3. Little details but still “With substance”; Only “top-3”

4. “Pointing solution path” and “removing barriers”; ”Be concrete in geographic areas of implementation”; ”Distinguish quick and long term wins for implementation”

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