Energy Community Secretariat Energy Community Secretariat

Improving market functioning in the

Energy Community Janez Kopač

Director

23 October 2019, 33rd Madrid Gas Forum

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Energy Community Secretariat Energy Community Secretariat 2

Energy Community gas acquis

Directive 2009/73/EC & Regulation (EC) 715/2009 (1 January 2015 / Georgia: end 2020)

Regulation (EU) 703/2015 on Interoperability and Data Exchange and Guidelines on

Congestion Management Procedures (annex to Regulation 715) (1 October 2018)

Regulation (EU) 2017/459 on Capacity Allocation Mechanisms, Regulation (EU)

2017/460 on harmonisation of Tariffs (foreseen deadline by the Feb 2020)

o First capacity allocation scheduled for 1 July 2020

o Incremental capacity procedure from 2021

Regulation (EU) 312/2014 on Balancing (discussion on adaptation finalised, to be adopted in Dec 2019)

Energy Community Secretariat Energy Community Secretariat 3

Gas acquis implementation ratio

0,00

0,05

0,10

0,15

0,20

0,25

0,30

0,35

0,40

0,45

0,50

AL BIH GE K* MD MN NM RS UA

Progress 2018/2019

2018 2019

Energy Community Secretariat Energy Community Secretariat 4

Energy Community certification experience

In gas:

Albgaz (AL) – OU 2017

TAP (AL) – an ITO model according to the Exemption 2016

Naftogaz (UA) – certification about to start – ECS issued its opinion on the model in

2016

Moldovagaz (MD) – certification not yet started – ECS involved in adopting an

unbundling plan

Gastrans (SE) – certification on going (an ITO model according to the Exemption)

Yugorosgaz Transport (SE) – failed ISO model certification 2017

Srbijagas (SE) – NRA rejected its certification before ECS involvement

Energy Community Secretariat Energy Community Secretariat

Case study: gas in the Energy Community

Future role of gas in CPs is shaped by factors different from EU’s (politics) - mixed

energy policy signals

Decarbonisation is NOT main concern

Lack of functioning el/gas markets lack of commercial test

Poor interconnectivity – infrastructure or legacy related; Questionable how much the

region can benefit from LNG glut

Reaching 2020 RES targets - ? (2030 only in 2021)

Construction of new coal-fired plants EU supports by acceleration of carbon leakage

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Energy Community Secretariat Energy Community Secretariat 6

NON REGULATED MARKET SHARES

0,00%

10,00%

20,00%

30,00%

40,00%

50,00%

60,00%

70,00%

80,00%

90,00%

100,00%

Georgia Moldova North Macedonia Serbia Ukraine

37,00%

0,00%

100,00% 85,00%

36,00%

Gas supplied from competitive market to eligible customers as % of total consumption

Energy Community Secretariat Energy Community Secretariat

PECIs and PMIs in the Energy Community

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Energy Community Secretariat Energy Community Secretariat

Gastrans Exemption and ECS Opinion

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Serbian NRA exempted the project from TPA,

tariffs, unbundling

Its Decision diverts from the Opinion of the

Secretariat

Serbian market highly monopolised by the

incumbent Srbijagas – no measures

established to increase competition in Serbia

Next MC will discuss the issue as per the Third

Package provisions