The third package of energy liberalization established, inter alia, the creation of ACER, the Agen-cy for Cooperation of Energy Regulators. ACER works in close relationship with National Regula-tory Authorities (NRAs), on the one hand, and the Council of European Energy Regulators (CEER), on the other hand. CEER is the voluntary association of European NRAs. The webinar will review extensively the structure of regulatory design that stems form the third package and in particular form the directive 713/2009.

1. Regulation 713/2009; ACER / CEER
Fulvio Fontini
Department of Economics and Management
University of Padua, Italy
and
Co-chair ESS TF, ACER/CEER
Ljubljana and Bruxelles

2. Content of the presentation:
1. The multilevel European governance of
electricity and gas;
3. Role, functioning, tasks and challenges of
CEER;
2. Directive 713/2009. Role, functioning, tasks
and challenges of ACER;

3. 4. Relationship between CEER, ACER and the
other bodies at the various level of
relationship and governance;
5. Future challenges, introduction to the
Energy Union. What’s next?

4. The Third Energy Package has defined and
attributed power and competences to new and
re-shaped existing European bodies.
Some have been directly foreseen in the T.E.P:
1) The multilevel European Governance of
electricity and gas

5. ENTSO: European Network of Transmission
System Operator. One for Electricity and one
for Gas;
ACER: Agency for the Cooperation of Energy
Regulators, whose role, functioning,
responsibilities and power have been laid
down in Directive 713/2009;
1) The multilevel European Governance of
electricity and gas

6. However, as an indirect consequence of entry
into force of the T.E.P. and the reshaping of
competences and bodies, some other
organization and bodies have emerged or, if
existing, their role has been evolving:
CEER: the Council of European Energy
Regulators;
1) The multilevel European Governance of
electricity and gas

7. European Fora:
 Electricity Regulatory Forum (Florence
Forum);
 Gas Regulatory Forum (Madrid Forum);
 Citizens' Energy Forum (London Forum);
1) The multilevel European Governance of
electricity and gas

8.  Electricity and Gas Regional initiatives;
 Pentalateral Energy Forum;
Other bodies involved or interacting with the
T.E.P. institutions: Energy Community;
Mediterranean Energy Regulators (MEDREG);
International Confederation of Energy
Regulators (ICER); Energy Regulators Regional
Association (ERRA).
1) The multilevel European Governance of
electricity and gas

9. ACER. Organization:
• The Director: manages and represents ACER;
• The Board of Regulators, responsible for the
regulatory policy of the Agency;
• The Administrative Board, responsible for the
administrative policy of the Agency
• The Board of Appeal, treats appeals against ACER.
2) Directive 713/2009. ACER

10. The Director of ACER:
Manages and represents the Agency: prepares the
work for the Administrative Board; adopts opinions,
recommendations and decisions (upon receiveing
favorable opinions by the Board of regulators);
drafts the annual workprogram of ACER and
implement it (with guidance of Board of Regulators)
Actual Director (reappointed): Alberto Pototschnig
2) Directive 713/2009. ACER

11. The Board of Regulators:
Is composed of representatives of NRAs (one each) +
one non-voting repr. of EC. Decides on regulatory
policy of ACER. Issue opinions to the Director that the
director shall follow (and provides guidance to the
Director). Approves the Work Programme of the
Agency (which is adopted by the Administrative
Board). Select the Director (on a list prepared by the
EC, who is then appointed by the AB).
2) Directive 713/2009. ACER

12. The Administrative Board
Composed of nine Members. Is in charge of ACER
Administration (main appointments of the Agency,
exercise budgetary power). Adopts the Annual Work
Programme (upon approval by the BoR). Appoints the
Director (upon a favourable opinion by the BoR).
2) Directive 713/2009. ACER

13. The Board of Appeal
Composed of 6 members (+ 6 alternates)
Is part of the Agency but is independent form its
administrative and regulatory structures. Decides on
appeal lodged against ACER decisions.
Decisions of BoA can be appealed before the Court of
Justice.
2) Directive 713/2009. ACER

14. Acer is also composed of:
• Staff (agents and SNE, organized in 5
Departments);
• Working groups (together with NRAs);
• Expert groups.
2) Directive 713/2009. ACER

15. ACER mandate (Dir. 713/2009):
2) Directive 713/2009. ACER
 Drafting Framework Guidelines and issue opinions
and recommendations on Network Codes;
 Issuing opinions on other ENTSO E/G
document/plans (the EU wide T.Y.N.D.P. and
national N.D.P.);

16. ACER mandate (Dir. 713/2009):
2) Directive 713/2009. ACER
 Issuing opinions and recommendations upon
request by Member States, NRAs, the European
Parliament, the Council and the European
Commission (or on the Agency’s own initiative,
whenever appropriate for ensuring the proper
functioning of the Internal Energy)

17.  Deciding on cross-border issues if national
regulators cannot agree or ask ACER to intervene.
2) Directive 713/2009. ACER
 Monitor the functioning of internal electricity and
gas markets, including network access for
electricity produced from Renewable Energy
Sources, retail prices and respect of consumer
rights. Issue every year a report (“IEM
monitoring”).

18. 2) Beyond Directive 713/2009. New ACER’s
competences
Subsequent legislation has empowered ACER of two
other relevant competences:
 Monitoring energy market integrity and
transparency: Regulation 1227/2011/EU on
wholesale energy market integrity and
transparency (REMIT);

19. What is REMIT:
2) Beyond Directive 713/2009. New ACER’s
competences

20.  Competences attributed/related to the European
Plan on Transmission Infrastructures (and the
Projects of Common Interests): Regulation
347/2013/EU on Guidelines for trans-European
energy infrastructure (TEN-E regulation).
2) Beyond Directive 713/2009. New ACER’s
competences

21. • Opinion on ENTSOs’ updated methodologies for
cost-benefit analysis on PCIs;
• Report on national methodologies and criteria
used to evaluate investments in electricity and gas
infrastructure projects;
• Annual report on progress in PCI implementation;
• Decisions on Cross-Border Cost Allocation
Decisions;
2) Beyond Directive 713/2009. New ACER’s
competences

22. Plus other relevant competences, foreseen in other
documents – acts etc., leading (perhaps) to future
legislation:
 “Energy Regulation: A Bridge to 2025” conclusion
paper: RES challenges + DSM.
 Towards an “Energy Union” (retail + RES).
2) Beyond Directive 713/2009. New ACER’s
competences

23. 2) ACER work
Acer work done so far (summary):
• Completed 8 FG;
• Recommended for adoption 11 (out of 14
proposed) NC;
• (Started) launching REMIT monitoring;
• Issued opinions related to the “Infrastructure
challenge”;
• Issued 2 individual decisions on the (cross-border
cost allocation) of the Gas Interconnector Poland-
Lithuania and the E-PCI PL/LT.

24. 2) ACER work
FutureACERActivity
(fromWP2016)

25. The Council of European Energy Regulators:
3) Role and functioning of CEER.
• Has partially inherited the “tradition” (if not the
mandate) from ERGEG: it is a voluntary advisory
council set up by NRAs to exchange opinion, share
best practises, support NRAs, interact with other
international (EU and non EU) bodies.

26. 3) Role and functioning of CEER.
Source: CEER

27. 3) Role and functioning of CEER.
General Assembly: takes any decision reserved to the
General Assembly by law or the statutes of the
association, such as:
• approving position papers and official documents;
• admitting and excluding Members;
• establishing the internal rules of the association;
• amending the statutes.
Presidency and Board (the President + five Vice
Presidents): manages the CEER and represents the
association externally.

28. 3) Role and functioning of CEER.
Working groups (supported by Task Forces). Made of
members and observers, discuss the topics at a
technical level, draft and present to the board papers
and fact sheet, draft consultations, etc.
The first four WG are “mirrored” by ACER WG
(advising ACER’s Director).

29. CEER is different from (and complimentary to) ACER:
• it does not issue binding regulation;
• it focuses on aspects relevant for NRAs but that
are outside the explicit remit of ACER (eg. RES,
Security of Supply);
• it works is strict cooperation with ACER (e.g. the
target models)
• It participates to the several fora of cooperation
with EU bodies: London Forum , Madrid Forum,
Florence Forum.
3) Role and functioning of CEER.

30.  Florence, Madrid and London Fora:
Set by European Commission (before the T.E.P.),
involve NRAs, Member State Governments, the
European Commission, TSOs, and specific
stakeholders. Are tools aimed at helping
stakeholders interactions on:
• actual status of the I.E.M.
• future visions.
4) ACER, CEER and various Fora.

31. Florence Forum (meets twice per year).
Stakeholders involved: Power Exchanges, TSOs,
Consumers and Industry Associations +
institutional ones.
Focuses on I.E.M. implementation and future
challenges (Security of Supply, RES integration).
4) ACER, CEER and various Fora.

32. Madrid Forum (meets twice per year).
Traditional aim: first discussion platform to set
up a European market for gas. Current agenda is
on various aspects of cross-border gas
exchanges and on future evolution of
Regulation (on SoS).
4) ACER, CEER and various Fora.

33. London Forum (meets once per year).
Aim: creating competitive, energy-efficient and
fair retail markets for consumers.
Working Groups established, focusing on:
• vulnerable consumers;
• price transparency;
• consumers as energy market agents.
4) ACER, CEER and various Fora.

34. • Regional Initiatives: launched by the
European Regulatory Group for Electricity
and Gas (ERGEG) in 2006, aiming at bringing
together stakeholders to foster integration at
regional level.
• There are 7 RI in electricity and 3 in gas.
4) ACER, CEER and various Fora.

35.  Pentalateral Energy Forum.
Created in 2005 by Energy Ministers from
Benelux, Germany and France in order to
promote collaboration on cross-border
exchange of electricity. Topics (slowly) moving
towards a full energy integration (e.g. towards a
common Generation Adequacy Assessment).
4) ACER, CEER and various Fora.

36. From the Internal Energy Market target (EU
Council Conclusions – 4 February 2011 “The
internal market should be completed by 2014
…”)

to the Energy Union (EU Council Conclusions –
19 March 2015 “The EU is committed to
building an Energy Union’… with “a fully
integrated European energy market”).
5) What’s next? Energy Union

37. Reasons:
• Some duties and obligations are changing
(e.g. from NC drafting and adoption to NC
implementation and adaptation/evolution).
• Some relevant pieces of legislation still at
national level (e.g. on Security of Supply)
5) What’s next? Energy Union

38. • European infrastructural challenge becoming
more and more important (from technical
regulation to common development plan).
However, decisions on new investments (and
more in general contractual power with
suppliers, e.g. in gas) is still mostly a National
issue.
5) What’s next? Energy Union

39. The proposal of the European Commission: the
Energy Union. 5 pillars:
• Energy security and solidarity
• A fully integrated European energy market
• Energy Efficiency as a tool to limit energy demand
• Economy decarbonization
• Research, innovation and competitiveness
5) What’s next? Energy Union

40. In concrete:
 Revision of regulation on Gas Security of
Supply.
• Revision of Decision 994/2012/EU on Gas;
provision of standard European contractual
clauses; information release on gas contracts
relevant for EU EU energy security.
5) What’s next? Energy Union

41. • Options for (voluntary) collective purchases
of gas. European strategy on storage and
LNG.
• Ban of regulated retail prices (both E&G).
5) What’s next? Energy Union

42.  Revision of Electricity Security of Supply.
• EC sets the admissible level of load shed at
European level, taking into account all
sources (including RES), interconnections
and DSR. There will be limits to (and perhaps
a blueprint for an European) National CRM.
5) What’s next? Energy Union

43.  Infringement procedures on Unbundling and
NRAs effective independence.
 Extension of ACER competences beyond
cross border competences and based on its
own initiative.
 More institutional role for Regional
Initiatives.
 New round of Project of Common Interests.
5) What’s next? Energy Union

44. End of Presentation.
Thank You!
E-mail:
fulvio.fontini@unipd.it