As in
previous report by the ACERC the Energy Community Secretariat release on 15
July 2015 the Draft for Consultation on the Policy Guidelines on the Promotion
of Organised Electricity Markets in the Contracting Parties developed with the
support of an ad-hoc working group comprising academia and industry
professionals listed at the end of the document.
In the part,
dedicate to the Governance regard the Ownership, operation, finance is report
that when discussing the set-up and governance structure of an entity operating
an organised market, the chosen business model will provide the answers to most
design questions and options. The present Policy Guidelines should not
foreclose any of these options, but provide recommendations how to effectively
establish an organised market structure in the Contracting Parties. In turn,
this implies that each initiative, be it private or public, may turn out to
successfully establish an organised market.
Besides the
necessity to reform the national legal and regulatory framework, where the
involvement of authorities is crucial, most other elements can be made
successfully without direct ownership involvement of the state or public
companies. Moreover, the establishment of an organised market does not require
the creation of a new institution per se. A cost-effective solution in this
endeavour could be the mere creation of a trading hub by an existing power
exchange, given the cooperation of the national system operator and regulator.
A clear vision and political support, however, is key to enable the emergence of
this model for the Contracting Parties.
In any case,
a regulatory landscape is to be created which fosters the emergence of power
exchange functionalities, but does not prescribe how the ownership structure
should be. In countries where until now no power exchange emerged, it is likely
that the legal environment was not beneficial for it, or markets are simply too
small and hence not providing sufficient tradable capacity for profitable
operation. Contracting Parties are free to choose what path they intend to go,
by either requiring the nomination of a national or foreign power exchange to
service the national market, foresee the establishment of a national power
exchange by law, or ensure that the regulatory framework provides sufficient
incentives for the emergence of power exchange activity.
Regarding
the start-up financing for the establishment of an organised market, various
options are possible: a regulatory fee (only in the case of national legal
monopolies), financing through members’ fees, or third party financing,
possibly in combination with an ownership option. Refinancing of implementation
costs through handling fees is, however, not recommended in order not to
introduce disproportionate transaction costs.
In regard
the ECS Draft for Consultation conclude that “Irrespective of whether the
establishment of an organised market is promoted by the servicing from existing
exchanges or the creation of new institutions, each establishment process
should be inclusive and transparent. Support by both political decision-makers
and industry is crucial. Cooperation with the respective industry’s key players
is important, especially the incumbents’ support is essential for the
Contracting Parties in their potential function as liquidity providers”.