30 Access to gas transmission networks
| (25196)
16260/03
COM(03)741
| Draft Regulation on conditions for access to the gas transmission networks
|
| Legal base | Article 95 EC; co-decision; QMV
|
| Document originated | 10 December 2003
|
| Deposited in Parliament | 22 December 2003
|
| Department | Trade and Industry
|
| Basis of consideration | EM of 13 January 2004
|
| Previous Committee Report | None
|
| To be discussed in Council | No date set
|
| Committee's assessment | Politically important
|
| Committee's decision | Cleared
|
Background
30.1 We reported in January on a Commission Communication dealing
with the measures on security of supply and infrastructure needed
to develop the Community's internal energy market in ways which
also help to meet its environmental and sustainable development
commitments.[64] In
particular, the Communication noted that the Commission had previously
brought forward legislative proposals setting out common rules
for the internal market in electricity and natural gas, and for
the conditions governing access to the network for cross-border
exchanges in electricity. It also noted that the further proposals
which the Commission intended to bring forward in this area included
one for a Regulation on cross-border trade in gas, similar to
that already adopted for electricity in June 2003,[65]
which would give legal backing to the voluntary Guidelines for
Good Practice which had been agreed by the European Gas Regulatory
Forum (EGRF) in September 2003.[66]
The proposal in question is set out in the current document.
The current document
30.2 In its introduction, the Commission recalls that the Directive
(2003/55/EC[67]) setting
out common rules for the internal market in natural gas provides
for:
- the right for all non-household gas customers to freely choose
their supplier no later than 1 July 2004, with all customers being
given this right by 1 July 2007;
- third-party access to transmission and distribution
networks on the basis of published and regulated tariffs;
- the establishment of a regulatory authority,
with a common minimum set of responsibilities, in each Member
State;
- the legal unbundling of transmission and large
and medium-sized distribution companies;
- access to storage facilities either on a negotiated
or regulated basis.
It says that these steps will provide the basic structural
reforms necessary to develop the internal market for gas, but
that the Community's objectives of achieving a level playing field
for all participants in this area are unlikely to be met, unless
additional legislative measures —
similar to those already adopted under Regulation (EC) 1228/2003
—
are taken regarding the manner in which transmissions systems
are operated.
30.3 Accordingly, the proposal would spell out the
underlying principles governing:
- charges for access to networks;
- third-party access services;
- capacity allocation mechanisms and congestion
management procedures;
- transparency requirements;
- balancing and imbalance charges;
- secondary markets.
Within this broad framework, more detailed guidelines
would be set out in annexes, and there would be provision for
these to be amended by a Regulatory Committee, which would be
obliged to consult the EGRF and (via the new European Energy
Regulatory Group) national regulatory authorities.
The Government's view
30.4 In his Explanatory Memorandum of 13 January
2004, the Minister for Energy, e-Commerce and Postal Services
at the Department of Trade and Industry (Mr Stephen Timms) says
simply that the Government agrees that there is a need for a mechanism
for agreeing effective and enforceable cross-border trading rules,
and that the proposed Regulation —
to which his Department and the industry regulator made a significant
input at the drafting stage — is
a means of providing this. He also says that the European gas
industry has been closely involved in the drawing up of the proposal,
and that the Government is currently in close touch with the UK
industry about these issues. On the substance of the proposal,
the Minister suggests that the proposal would require minimal
adjustment to the existing regime within Great Britain, and will
also have a negligible effect on the operation of businesses.
Similarly, he says that the limited development of the gas market
in Northern Ireland means that the proposal will not have a significant
impact there.
Conclusion
30.5 Although this proposal is seen as an important
means of under-pinning the voluntary guidelines agreed last year
by the European Gas Regulatory Forum, it does not of itself appear
to break new ground. In this connection, we note the Government's
view that minimal adjustments would be required to the existing
regime within Great Britain, and that there will be a negligible
impact on businesses. Consequently, although we think it right
to draw the proposal to the attention of the House, we see no
need to withhold clearance.
64 (25198) 16262/03; see HC 42-vii (2003-04), para
8 (21 January 2004). Back
65
Regulation (EC) No. 1228/2003. OJ No. L 176, 15.7.03, p.1. Back
66
This is a body which comprises national regulatory authorities,
associations representing network operators and users, and consumers. Back
67
OJ No. L 176, 15.7.03, p.57. Back
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