Download GR – SF A

EU Single market for energy
Expectations of the
European industrial consumers
Peter CLAES
President Ifiec Europe
September 10, 2003
SVSE 2003 - Praha
1
What is IFIEC Europe ?
European federation of national
federations of industrial energy consumers
Issues :
• Market liberalisation (electricity – natural
gas)
• Environmental aspects of energy policy
• European Climate Change Policy
• Renewables / nuclear energy / CHP / …
• Energy
taxation
September
10, 2003
SVSE…
2003 - Praha
2
IFIEC Members
EU-members
Future EUmembers
Members
D – F – GB
B - NL – IRL
I – GR – SF
A–P
H
Non-members
S – DK – LUX
CZ – EST – LV
LT – PL – SLO
SK – M – CY
E (?)
September 10, 2003
SVSE 2003 - Praha
3
1. Does the single market work ?
Performance indicators:
 How many users changed suppliers?
 Did prices fall or (at least) converge ?
September 10, 2003
SVSE 2003 - Praha
4
How many users changed suppliers ?
(1998-2001, Source: DG Tren, Eurostat)
Electricity
Industrial
Electricity
Domestic
Gas
Industrial
Gas
Domestic
Austria
20-30%
5-10%
<2%
Not eligible
Belgium
2-5%
Not eligible
???
Not eligible
France
10-20%
Not eligible
20-30%
Not eligible
Germany
20-30%
5-10%
<2%
<2%
Italy
>50%
Not eligible
10-20%
2-5%
Netherlands
20-30%
Not eligible
30-50%
Not eligible
Spain
10-20%
Not eligible
20-30%
Not eligible
UK
>50%
30-50%
>50%
>50%
September 10, 2003
SVSE 2003 - Praha
5
Did prices fall or (at least) converge ?
September 10, 2003
SVSE 2003 - Praha
6
Did prices fall or (at least) converge ?
September 10, 2003
SVSE 2003 - Praha
7
Did prices fall or (at least) converge ?
September 10, 2003
SVSE 2003 - Praha
8
Did prices fall or (at least) converge ?
September 10, 2003
SVSE 2003 - Praha
9
2. What went wrong ?
2.1. Does unbundling work ?
• Accounting unbundling (“Japanese Walls”)
• Management unbundling
• Legal unbundling
• Ownership unbundling (“Chinese Walls”)
September 10, 2003
SVSE 2003 - Praha
10
2. What went wrong ?
2.1. Does unbundling work ?
2.2. The impact of subsidiarity
September 10, 2003
SVSE 2003 - Praha
11
The impact
of
subsidiarity
Source :
Second benchmarking
report DG Tren
September 10, 2003
SVSE 2003 - Praha
12
Source : Second benchmarking report DG Tren
September 10, 2003
SVSE 2003 - Praha
13
2. What went wrong ?
2.1. Does unbundling work ?
2.2. The impact of subsidiarity
2.3. Cross-border Transmission
September 10, 2003
SVSE 2003 - Praha
14
Cross-border Transmission
2.3.1. Suboptimal use of existing capacity
• e.g. Belgian-French border (electricity)
• available capacity : app. 4.000 MW
• available for market : 350-500 MW
• ULF : peaks of > 2.000 MW
September 10, 2003
SVSE 2003 - Praha
15
Cross-border Transmission
2.3.2. Lack of cross-border transmission capacity
September 10, 2003
SVSE 2003 - Praha
16
Cross-border Capacity Electricity
In % of installed production capacity (Source: DG Tren)
Potential
competition
from imports
Market share
of Top 3
producers
Austria
21%
45%
Belgium
25%
96%
France
12%
92%
Germany
11%
64%
Italy
14%
69%
Netherlands
19%
59%
Spain
4%
83%
UK
3%
36%
September 10, 2003
SVSE 2003 - Praha
17
Cross-border Transmission
2.3.3. No efficient congestion management system
• no agreement within ETSO
• no efficient exchange of information
between TSOs
• no single European CM-system
• re-dispatching
• auctioning
• rationing
• market splitting
September 10, 2003
SVSE 2003 - Praha
18
2. What went wrong ?
2.1. Does unbundling work ?
2.2. The impact of subsidiarity
2.3. Cross-border Transmission
2.4. Complexity of energy policy
September 10, 2003
SVSE 2003 - Praha
19
Complexity of energy policy
• European Climate Change Programme
• renewables
• CHP
• CO2-emissions
• nuclear energy ?
• financing of other policies (public services,
local entities, …)
• security of supply
• + NIMBY-syndrome !
September 10, 2003
SVSE 2003 - Praha
20
3. Recommendations of Ifiec
• full ownership unbundling (Chinese walls)
• full market opening for all users
• publication of all relevant information by
TSOs and regulators
September 10, 2003
SVSE 2003 - Praha
21
3. Recommendations of Ifiec
Electricity
• cost-based, fair CBT financing mechanism
(non-distance related, fair share to be paid by
producer)
• non-discriminatory, transparent and efficient
congestion management system (no auctioning)
September 10, 2003
SVSE 2003 - Praha
22
3. Recommendations of Ifiec
Gas (gas-to-gas competition)
• cost-reflective and simple tariff structure
• non-discriminatory, cost-reflective access to
gas infrastructures (incl. Storage, off-shore
facilities)
• clear, non-discriminatory, transparent balancing
rules (preferably daily balancing)
• capacity rights subject to “use-it-or-loose-it”
September 10, 2003
SVSE 2003 - Praha
23