Energy regulators propose regional solutions to security of supply at the Madrid Forum Brussels, 20 April 2015

Energy regulators propose
regional solutions to security of supply at the Madrid Forum

Brussels, 20 April 2015


Complete the Internal Energy Market

• Prevent
first, mitigate later


Regional approach to security of supply is crucial

Today,
the Council of European Energy Regulators (CEER) presented at the Madrid Forum (20-21
April) its proposals for enhancing security of supply in Europe.

CEER
underlined the completion of the Internal Gas Market as a crucial basis for any
EU security of supply strategy.

CEER
proposes market-based solutions where possible and, importantly, regionally
coordinated plans to security of supply rather than the currently used purely
national focus.

Prevent first, mitigate later

Walter
Boltz, Chair of the CEER Gas Working Group, advocated using market-based
instruments including regional coordinated plans as long as possible (during
the prevention phase), before moving into the mitigation (state intervention
via emergency plans) phase:

“Market-based
instruments should be used to guarantee continuity of supply as long as
possible. One important measure is to make sure the Balancing Network Code is
properly implemented, so that the value of security of supply could be
incorporated in a market-based balancing regime”.

Regional approach to security of supply is crucial

“Member
States are no longer the only appropriate reference point for a security of
supply policy within the internal market”, explained Mr Boltz.

Within
the regions coherent risk assessments, preventive action plans and emergency
plans need to be elaborated and properly coordinated. This process could be
facilitated if the European Commission designed one standard template and if
all regional plans were available in English.

Increased role for the European Commission

Mr Boltz
stressed that the European Commission has an increasing role to play in
security of supply in supporting competent authorities, regulators and network
companies’ efforts towards greater cross-border cooperation. He suggested that
the European Commission could appoint a security of supply mediator should
competent authorities fail to agree upon regional plans.

CEER
considers gas storage (and LNG) as having an important role in delivering
security of supply, but cautions against a one-size fits all approach for
strategic storage. Following its public consultation on storage, CEER will soon
publish its regulatory vision for the gas storage market.

See
CEER’s response to the European Commission’s recent public consultation on the
review of the Security of Supply Regulation.

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