Brussels, 06/09/2007 (Agence Europe) - As we previously announced, the Commission will, on 19 September, present its draft 3rd legislative package to improve the working of the internal gas and electricity market, and open it up further to competition. According to provisional documents obtained by EUROPE, the Commission will present five draft texts to try to correct the weaknesses in the energy market revealed by its sectoral investigation in January 2007 (see EUROPE 9341):
- two draft directives to amend directives 2003/54/EC and 2003/55/EC relating to common rules for the internal market in electricity and gas. The aim is to achieve effective unbundling of energy operators' activities (production/supply and transmission). Two options are put forward to improve access for new companies to the transport networks still held by the former monopolies: - the more radical option, and the one favoured by the Commission, would see ownership unbundling of energy production and transport activities. The large vertically integrated groups would be required to cede control of their transport infrastructure (energy “motorways”), but they would retain control over local distribution networks; - the other option, called “ISO+”, is more flexible, and would allow the large groups to retain ownership of their infrastructure, but they would be required, in exchange for remuneration, to have it managed by an independent system operator, who would be responsible for determining the necessary investment for the proper working of the network.
- three draft regulations. The first is to set up an Agency for the cooperation of national energy regulators for electricity and gas, responsible for monitoring the impact of operators' conduct on the internal energy market. Under the guidance of a Regulators' Council, the Agency would monitor transmission system operators (TSOs) and could ask them to amend their plans to ensure adequate investment in the networks. While not called on to replace national regulators in their national tasks, the Agency would nonetheless have the power to review decisions taken by a national regulatory authority which had a direct impact on the internal market. Accompanying the Agency, there will be a strengthening of the powers of national regulators to allow them to decide on sanctions to discourage abuses by energy operators. The aim of the two other draft regulations, to amend regulations 1228/2003 and 1775/2005 relating to conditions of access to electricity and gas transport networks, is to enhance cooperation between TSOs and to encourage cross-border trade and interconnections under the supervision of the new European regulator. (eh)