Northern Europe Electricity Regional Initiative 5th Stakeholder Group Meeting Transparency in the region 26. May 2010, Copenhagen Jan-Welf Selke Bundesnetzagentur

Northern EuropeElectricity Regional Initiative

5th Stakeholder Group Meeting

Transparency in the region

26. May 2010, Copenhagen Jan-Welf SelkeBundesnetzagentur

2 Northern Europe Electricity Regional Initiative5th Stakeholder Group Meeting, 26. May 2010

Northern Europe ERI

Background


Background

Why is market transparency an important issue?

• Insufficient transparency means that not all market actors have access to the same information

• Asymmetry of information may lead to adverse effects on market competition and price formation

• This may create the opportunity to market manipulation

Market transparency has been considered very important in the Northern Region


Background

Main categories of information in the energy sector

• fundamental / physical / pre-trading data

• data related to trading, i.e. transactional data.

PRE-TRADE TRADE POST-TRADEMARKET


Northern Europe ERI

Fundamental Data Transparencyin Northern Europe


Fundamental Data Transparency in Northern Europe

• Northern regulatory authorities published aTransparency Report in September 2007

• Benchmark for assessment of transparency in the region

• Has led to harmonisation of published information

• Most of this information is required by the Congestion Management Guidelines

• Our Transparency report has become model for other regions (CWE, CEE, SWE and CSE)


Fundamental Data Transparency in Northern Europe

Regulators of the Northern Europe region committed themselves to monitor the implementation of the Transparency Report by publishing Implementation Reports on:

1. Load, transmission/interconnectors and balancing (published in July 2008)

2. Generation(to be published in the upcoming weeks)


Northern Europe ERI

2nd Implementation Report



Focus of the report is on information regarding:

• Installed generation capacity

• Planned outages of generation units (ex ante)

• Scheduled unavailability of consumption units (ex ante)

• Scheduled generation (aggregated / ex ante)

• Filling rates of water reservoirs

• Forecast and actual generation of wind and solar power

• unplanned unavailability of generation units (ex post)

• unplanned unavailability of consumption units (ex post)

• Actual generation (ex post)



Preview on the content and results of the report (1)

• The Implementation Report shows that full compliance by all countries is almost achieved.

• But – there are some shortcomings

Some information is only available in the national language and not yet in English

Some information is not yet completely available – but will be published soon



Preview on the content and results of the report (2)

• Some items are not relevant for all countries

Filling rates of water reservoirs: only relevant for Norway, Sweden and Finland – fully compliant

Forecast and actual generation of wind and solar power: only relevant for Denmark and Germany – also fully compliant

Information on unavailability of significant consumption units (>100 MW) – in Poland there are no consumption units of this size


Northern Europe ERI

Transparency in Europe – what‘s next



European Commission issued a joint mandate to Energy and Financial Market Regulators (ERGEG and CESR) in December 2007

Main questions

• Is financial market regulation sufficient to secure integrity of energy markets?

• What extent of transparency does financial and physical energy trading need?



What did ERGEG/CESR recommend? (among others)

• Transparency of trading data (anonymous publication of transactions close to real-time)

COM will present a legislative proposal

• Transparency of fundamental data (price sensitive information, e.g. power plant outages)

Comitology guidelines on Transparency



Comitology guidelines on Transparency

• In January 2010, the European Commission requested ERGEG (and ENTSO-E) to draft a guideline on fundamental data transparency

• Through comitology the EU-Commission can formally adopt this guideline and make it legally binding

• This should lead to higher degree of harmonization of fundamental data transparency.

• Regulators notion: The guidelines will be based on the Northern Europe Transparency Report


Thank you for your attention!

Jan-Welf Selke

Bundesnetzagentur

[email protected]

Documents

Northern Europe Electricity Regional Initiative 5th Stakeholder Group Meeting Transparency in the region 26. May 2010, Copenhagen Jan-Welf Selke Bundesnetzagentur