Background
Energy Market: Flashback on the third legislative package
The January 2009 gas
crisis showed that a more coordinated approach
is needed at European level to provide stable
and secure energy supply to European citizens.
Most Member States
already started a risk assessment and put in
place infrastructure needed for security of gas
supply. Through the European Energy Programme
for Recovery cross border infrastructures have
benefitted EU co-financing amounting to with
€1.4 billion.
Security of supply is also at the centre of the 3rd
package of measures, targeting the energy market, and adopted by the Commission
on 19 September 2007.
As the new Gas/Electricity Directive/Regulation will come into force in March
2011, this third legislative package will soon ensure that all European citizens take advantage of the numerous benefits provided by a truly competitive energy market.
A real market with secure supply
Isolated
markets
with only one source
of gas
have
proven to be more vulnerable
to supply disruptions than
well integrated
markets
with gas
supply from different sources. Competition
between various
suppliers naturally
leads
to diversification
of
sources and
routes. The
Third
Legislative
Package's
provisions on Unbundling
are
expected to trigger new investments in networks
necessary
to enable
diversification
of
routes and
sources.
ENTSOs
Both for electricity
and gas,
the
Third
Legislative
Package
creates
a new
structure of
cooperation
between network operators,
the
so called
European
Networks of
Transmission
System Operators
(ENTSOs).
The ENTSOs
will,
together
with the
new EU Agency
for the
Cooperation
of
Energy
Regulators,
create
detailed
network access
rules. These
rules will
apply
all
over the
EU to ensure
that
gas
and
electricity
can flow freely within
the
EU. This
will prove to be essential
in situations
of
crisis, as
it will
enable
the market
to bring electricity
and gas
to places
where it is most needed.
Market transparency
The Third
Legislative
Package
greatly
enhances
transparency
in the
gas market,
in particular
by
providing equal
access
to information
on the
availability
of gas.
The
Package will
allow
regulators
and
governments to
analyse
how markets
are
able
to cope with supply disruptions.
Greater cooperation
Operators
of
the main
gas
and
electricity transportation
networks
will have
an
obligation
to cooperate
to make
the
operation
of
the
network less vulnerable
to interruptions
and
emergency situations.
ENTSOs are
required to cooperate
and
coordinate
the
operation
of
their
networks, through
the
exchange
of
operational
information
and
the
development
of common safety
and
emergency standards
and
procedures.
Investment
The
ENTSOs will
have
the task
of making
a 10-year
investment plan
every two years.
This will
bring the
infrastructure
planning
to a
new level – from
the national
approach
followed until now to
a
true
European
approach
– and
will
target
the
investments where
they
are
needed from
the
European security
of
supply perspective
More:
Commission webpage on Gas & Electricity
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