Betreff:                           GEODE Euroletter - September 2014

 

 

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September 2014

EDITORIAL

To the surprise of many, Miguel Arias Canete has been proposed to succeed Günther Oettinger as Commissioner for Climate and Energy after both portfolios will have been merged. Mr Cañete has a long history in politics, serving both in the European Parliament and his home country - as Spain's Minister of Agriculture, Food and Environment, before running as the People's Party's candidate for the European Parliamentary elections of 2014. The newly shaped Commission as proposed by Juncker will also see the creation of an Energy Union which is supposed to be steered and coordinated by one of the 7 EC designated Vice-Presidents, Mrs Alenka Batusek, the former Prime Minister of Slovenia. Her impressive portfolio comprises DGs Energy and Climate, Transport and Space, Internal Market, Industry, Entrepreneurship and SMEs, Environment, Maritime Affairs and Fisheries, Regional Policy, Agriculture and Rural Development, Science and Innovation. As you can see – the political landscape in Brussels is about to change significantly while GEODE will continue what it’s best at: make sure our members’ voice is heard - whoever there’s in charge of energy policy!

EUROPE

 

 

The recently announced new Commission: The entire college of the Juncker’s Commission - Overview

On 10 September 2014, President of the Commission, Jean-Claude Juncker unveiled his team for the next European Commission. The new College will have, as the biggest innovation, 7 Vice-Presidents, six in addition to the High Representative of the Union for Foreign Policy and Security Policy (Federica Mogherini), each leading a project team. They will be steering and coordinating the work of a number of Commissioners in compositions that may change according to need and as new projects develop over time.

Despite of many rumours that have been in the air recently, the new merged portfolio of Climate Action and Energy has gone to the Spanish politician Miguel Arias Cañete. Cañete has a long history in politics, serving both in the European Parliament and his home country - as Spain's Minister of Agriculture, Food and Environment, and ran as the People's Party's candidate for the European Parliamentary elections of 2014.

Alenka Batusek, the former Prime Minister of Slovenia has been proposed to become one of seven Vice-Presidents of the new Commission who will be in charge of the Energy Union and be dealing with a rather impressive portfolio - DGs Energy and Climate, Transport and Space, Internal Market, Industry, Entrepreneurship and SMEs, Environment, Maritime Affairs and Fisheries, Regional Policy, Agriculture and Rural Development, Science and Innovation.

There are a few novelties in the structure:

 

·         First Vice-President – Dutch politician Frans Timmermans will be the right-hand of the President. This is the first time that there is a Commissioner dedicated to a Better Regulation agenda

·         Polish Former Government Minister - Elžbieta Bieńkowska will be in charge of the new Internal Market, Industry, Entrepreneurship and SME portfolio that will be the engine house of the real economy.

·         A strong new Economic and Financial Affairs, Taxation and Customs portfolio was designated to former French Minister of Finance Pierre Moscovici to ensure that taxation and customs union policies become part and parcel of a deep and genuine Economic and Monetary

·         Consumer policy is no longer divided into different portfolios but has been combined in the portfolio of the Commissioner for Justice, Consumers and Gender Equality under Czech politician, businesswoman and lawyer - Věra Jourova

·         There has been created a Commissioner specifically for Migration under Dimitris Avramopoulos to prioritise a new policy on migration that will robustly tackle irregular migration, whilst at the same time making Europe an attractive destination for top talent.

·         The new Financial Stability, Financial Services and Capital Markets Union portfolio under Jonathan Hill will focus on the existing expertise and responsibility in one place

·         Digital Economy & Society portfolio under former Commissioner for Energy, Günther Oettinger
Competition goes to former Danish Deputy Prime Minister and Minister for Economic and Interior Affairs - Margrethe Vestager

·         Research, Science and Innovation portfolio under Portuguese former Secretary of State Carlos Moedas will have to manage the 80€ billion Horizon 2020 research and innovation funding programme

In next step the European Parliament has to give its consent to the proposed College Commissioners. This is preceded by hearings of the Commissioners-designate in the relevant parliamentary committees.

For more information of the new Commission structure please click here.

 

 

The European Commission: A new Energy Efficiency Communication released

On 23 July 2014, the European Commission released its long-awaited new Communication on Energy Efficiency where a new energy efficiency goal of 30% for 2030 has been proposed. The proposed target goes beyond the 25% energy savings target which would be required to achieve a 40% reduction of CO2 emissions by 2030. It also reviews the progress of its 20 % target for 2020 and further analyses how this can impact the competitiveness and increase of the security of supply. In general view, the Commission doesn’t see any need for additional measures to be taken to achieve the goal, if only all Member States will work seriously to properly implement the already agreed legislation.

The Communication highlights many benefits that have come as a result of current energy efficiency policies as well as the EU's drive towards greater energy efficiency:

·         In accordance to the efficiency requirements, new buildings consume half as much energy today as they did in the 1980s. 

·         Energy intensity in EU industry has decreased by almost 19% between 2001 and 2011.

·         More efficient appliances like refrigerators and washing machines are expected to save consumers €100 billion annually – about €465 per household – on their energy bills by 2020.

·         Member States have committed to rolling out close to 200 million smart meters for electricity and 45 million for gas by 2020, leading to greater savings for consumers.

·         Between 1995 and 2010, the average specific consumption of fuel in new cars was more than 2 liters less than it was in 1995.

In the long-term view, based on achievements already reached the EU’s new 30% target is expected to deliver the following benefits, for instance: affordable energy bills for consumers, new opportunities for European businesses, contribution to the energy security through a significant reduction of natural gas imports that expect to fall by 2.6% and a positive impact on the environment. The new energy efficiency target is also estimated to create new jobs by 2030.

In next steps, the European Commission will review progress made in terms of energy efficiency in 2017.

Please click here for more information.

ACER's Presentation of its Conclusions Paper ‘Energy Regulation: A Bridge to 2025’

On 23 September 2014, The Agency of the Cooperation of Energy Regulators (ACER) presented their “Bridge 2025” Conclusions Paper to high level European Commission officials and stakeholders in Brussels. The ACER’s Bridge is the result of extensive public consultation that identifies the challenges Europe's energy markets will face in the coming decade and proposes a number of regulatory measures that need to be taken by regulators, Member States, The European Commission and all energy actors including consumers.

In the overall, the paper includes proposals to develop markets that truly benefit consumers such as the development of toolboxes of good practices to empower consumers, to regulate distribution system operators, advice facilitating the phasing out of regulated prices, and the development of an appropriate framework for the evolution of the market to include demand-side response.

Regarding DSOs interest, we would like to highlight the following recommendations and actions the ACER Bridge 2025 Conclusions Paper contains:

• to monitor activities of vertically integrated DSOs to ensure a level playing field - CEER will assess adequacy of current rules on business separation against evolving role of DSOs
• to define DSOs functions to facilitate the development of potentially competitive services
• to ensure market is not foreclosed to new entrants by incumbents - monopoly DSOs
• to identify and share good practices of distribution network tariffs

In relation to unbundling: the Bridge 2025 Conclusions Paper avoids to talk about further or stricter unbundling as the former draft did and, proposes further measures or actions instead. CEER will carry out  a consultation on the role and functions of DSOs starting in the coming months.

Other general recommendations in the Paper included:

·         a full implementation of Third Energy Package

·         a fast adoption of NCs

·         a rapid application of electricity and gas target models

·         a greater interaction of electricity and gas markets

·         a greater cooperation between DSOs and TSOs: recommendations to clarify and distinct roles and responsibilities of TSOs and DSOs needed

·         to establish common criteria for a well-functioning retail market - reliable and innovative
to facilitate the development of flexibility markets

·         regulatory arrangements should be developed to facilitate new uses of gas and removal of barriers to extension of gas distribution grid

·         to ensure consumers are empowered and properly protected

·         ACER given powers by EC to fulfill its functions more effectively - to improve the arrangements for regulatory oversight of the ENTSOs

For more information, please click here.

GEODE MEMBERS - UPDATES

 

 

Visit of die Vakka-Suomen Voima Oy from Finland of Stadtwerke Bietigheim-Bissingen GmbH in Germany

On 8 August, a delegation from the DSO Vakka-Suomen Voima Oy from GEODE Member Finnish Energy Industries visited another GEODE Member from Germany, Stadtwerke -Bietigheim Bissingen located in the South West of Germany and one of the most modern Stadtwerke in Germany. After a presentation given at the headquarters the delegation inspected the bio mass plant linked to a district heating network. We hereby would like to thank Mr Rainer Kübler, Managing Director of Stadtwerke Bietigheim-Bissingen for having hosted Vakka-Suomen Voima Oy!

Visit of DG ENER Delegation, European Commission, to GEODE Member Göteborg Energi

Beschreibung: http://i5.cmail2.com/ei/j/E8/A4E/5D9/csimport/Goteborg.153302.jpg

On 28 & 29 August, a delegation from European Commission, DG-ENERGY – Jan Panek and Eerio Ailio, Head and Deputy Head of the Retail Market Unit, and Manuel Sanchez, Team Leader Smart Grids – visited GEODE Swedish Member Göteborg Energi. GEODE itself was represented by its Chairman, Mr Reinhard Brehmer and its Secretary General, Carmen Gimeno. Mr Andreas Rydbo, Vice President of Göteborg Energi and Mr Henrik Forsgren were in charge of visit arrangements and successful organisation. Göteborg Energi, is Western Sweden's leading energy company that provides customers with energy services, broadband, district heating, cooling, natural gas and the electricity supply network. The Commission representatives were shown experiences from a local DSO after five years of smart metering deployment, the development of new services, added values, efficient grid operation etc. The guests were also presented how remote connection of electricity to new tenants in flats was done in real time, how meters for electricity and district heating are regularly calibrated in order to measure correctly and also how Göteborg Energy works to fight energy thefts. It was a very fruitful exchange of experiences and we are sure the Commission representatives very much appreciate the quality and innovation of the services Göteborg Enegi is providing to its customers!

 

 

Workshop on Experiences after the Roll-Out of Smart Meters in Italy and Sweden

On 9 September, the GEODE representatives Jonas Persson (Mälarenergi), Per Everhill (Tekniska Verken I Linköping) and Christoph Larch (Syneco) gave presentations on experiences made in Sweden and Italy on the roll-out of smart meters to an interested audience of ASEME members – the Spanish Association of small and medium-sized DSOs and member of GEODE. In Spain, Smart Meters will be rolled-out within the next? years and DSOs are keen to know what lessons can be learned - and what mistakes can be avoided -when looking at the processes other EU countries have gone through. Please let us know in case you require further information such as the presentations given at the workshop!

GEODE EVENTS

Beschreibung: cid:image002.jpg@01CFD96F.4FB457D0

Please see the event’s agenda and registration form!

GEODE - Avenue Marnix 28 - 1000 Brussels

SUMMARY

EDITORIAL
EUROPE

  • The European Commission: The entire college of the Juncker’s Commission - Overview
  • EC Communication on  Energy Efficiency
  • ACER's Presentation of its Conclusions Paper ‘Energy regulation: A Bridge to 2025’

GEODE MEMBERS - UPDATE

  • Visit of die Vakka-Suomen Voima Oy from Finland of Stadtwerke Bietigheim-Bissingen GmbH in Germany, Bietigheim Bissingen, 8 August 2014
  • Göteborg Energi AB - EC Delegation's visit, Göteborg, 28-29 August 2014
  • Workshop on Experiences after the Roll-Out of Smart Meters in Italy and Sweden, Barcelona, 9 September 2014

GEODE EVENTS

  • GEODE Autumn Seminar, Barcelona, 27 November 2014

AGENDA

GEODE's 2nd Workshop on Electricity Network Codes
Brussels, 1 October 2014

CEER Public hearing on Green electricity
Brussels, 7 October 2014

EC Gas Regulatory Forum
Madrid, 15-16 October 2014

CONCERTO Conference - Energy solutions for smart cities and communities
Brussels, 23-24 October 2014

Energy Utility Week
Amsterdam, 4-6 November 2014

ENTSO-E Conference "Securing Europe’s Competitive Energy Future"
Brussels, 19 November 2014

Electricity Regulatory Forum
Florence, 27-28 November 2014

GEODE Autumn Seminar
Barcelona, 27 November 2014

PUBLICATIONS

ENTSOE Public Consultation on the Draft Ten-Year Network Development Plan 2014
10 July - 20 September 2014

ACER Public Consultation on transaction reporting under REMIT
22 July - 2 September 2014

EC Communication on Energy Efficiency
23 July 2014

CEER Memo on Development and Regulation of Electricity Storage Applications
25 July 2014

CEER Memo on the unbundling of TSOs, DSOs and Closed Distribution Systems Operators
30 July 2014

ACER First Decision on Cross-Border Cost-Allocation decision
11 August 2014

ENTSOE Demand Side Response Policy Paper
15 September 2014

ACER Presentation of its Conclusions Paper: "Energy Regulation: Bridge to 2025"
23 September 2014