Subjects:

Energy Law, EU Law, Environmental Law

Contents:

Chapter 1: Introduction

1. The basic requirements for creating complete regional electricity and gas markets

1.1. Creating a competitive electricity and gas wholesale market

1.2. Third party access

1.3. Unbundling

1.4. The establishment of an independent energy regulator

1.5. High public service standards

1.6. Reciprocity

1.7. Effective EU wide rules on trade related regulatory issues

2. The First electricity and gas Directive

2.1. Competitive electricity generation and gas wholesale market

2.2. Third party access

2.3. Unbundling

2.4. Effective regulation and the establishment of an independent Regulator

2.5. Public service requirement

2.6. Reciprocity

3. The implementation of the first Directives and the proposal of the second Directives and the Regulations on cross border trade

Chapter 2: Creating a common Electricity and Gas wholesale Market

1. Electricity

1.1. Introduction

1.2. The Authorisation procedure

1.2.1. Substantive issues

1.2.2. Procedural issues

1.3. Tendering

1.3.1. Security of supply

1.3.2. Environmental protection and the promotion of instant new technologies

1.3.3.Procedure

2. Gas

Chapter 3: Third Party Access

1. Introduction

2. The appointment and duties of transmission and distribution system operators

2.1. Appointment

2.2. Duties and responsibilities of transmission and distribution system operators: Electricity

2.2.1. General duties

2.2.2 Specific duties and responsibilities of electricity. transmission and distribution system operators

2.3. Duties of transmission and distribution system operators: Gas

3. Regulated Third Party Access

3.1. Publication of standard tariffs

3.2. Regulation of tariffs

3.2.1. Cost reflectivity

3.2.2 Level of detail of a tariff methodology

4. Negotiated Third Party Access (storage and ancillary services)

5. Confirmation of the Regulator's decision by the Member State

6. Access to upstream gas pipelines

7. Transit

Chapter 4: Unbundling

1. Introduction: the need for unbundling

2. The requirements of the second Electricity and Gas Directives

2.1. Overview

2.2. Definition of a vertically integrated company

2.3. Accounting unbundling

2.4. Legal unbundling

2.5. Combined network operator

2.6. Management unbundling

2.6.1. General definition of management unbundling

2.6.2. Independent management

2.6.3. Separation of professional interests

2.6.4. Control over assets by the network operator

2.6.5. Compliance programme

3. Derogations from unbundling requirements

3.1. Exemption from unbundling requirements for small distributors

3.2. Delay in implementing legal unbundling for distributors until 2007

3.3. Reporting and possible revision of the Directives

Chapter 5: National Regulatory Authorities

1. The need for a sector–

specific regulator

2. The appointment and status of a regulator

3. The tasks of the regulatory authority

3.1. Basic task or objective

3.2. The power to vet tariff

3.3. Monitoring

3.4. Power to require modification of terms and conditions

3.5. Power to deal with complaints

3.6. Control over storage access conditions

3.7. Additional responsibilities in the Regulation regarding cross border . electricity exchanges

4. Procedures of regulatory authorities

4.1. Dealing with complaints

4.2. Appealing a decision of the regulatory authority

5. The resources of the regulatory authority

6. Control of dominance and predatory behaviour

7. Jurisdiction over cross border disputes

8. Co operation between Regulators

Chapter 6: Public Service objectives

1. Introduction

2. Summary of provisions on public service

3. Detailed analysis of the requirements of Article 3

3.1. Obligation to ensure non discrimination

3.2. The right of Member States to impose public service obligations

3.2.1. Security, including security of supply, regularity

3.2.2. Quality and price of supplies

3.2.3. Environmental protection, including energy efficiency and climate protection

3.3. Positive duty to achieve specified public service objectives

3.4. Notification of public service obligations by Member States

3.5. Publication of public service objectives

3.6. Universal service guarantee for electricity

3.7. Obligation to assign state aid or exclusive rights in a non discriminatory manner

3.8. Environmental labelling provisions

3.9. Duty on Member States to protect vulnerable consumers: electricity

3.10. Duty on Member States to protect vulnerable consumers: gas

3.11. Customer protection obligations

3.12. Obligation on Member States to ensure that eligible customers can. really switch supplier

Chapter 7: Reciprocity

1. The concept of reciprocity

2. Applying reciprocity in practice

3. Possible Commission intervention

4. Difficulties in applying the reciprocity clause

Chapter 8: Derogations and Exemptions

1. Introduction

2. Small isolated systems (electricity)

3. Isolated markets (Gas)

4. Technical difficulties respecting market opening deadline for non household customers

5. Emergent markets

6. Emergent regions

7. Take or pay contracts

7.1. Introduction

7.2. Extent of a possible derogation

7.3. Procedure

7.4. Substantive issues relevant to the grant of a derogation

8. New Infrastructure

8.1. Introduction

8.2. Substantive issues relevant to the grant of a derogation

8.3. Procedure

Chapter 9: Direct lines

1. Introduction

2. Electricity

3. Gas

Chapter 10: Reporting and Review of the Directives

Chapter 11: Implementing and Entry Into Force

Chapter 12: The Internal Market and Neighbouring Countries

1. Introduction

2. The Internal Market and GATT

3. Norway

4. The South East Europe Electricity Market

5. Russia and the CIS countries

6. Euro Med

Chapter 13: The development of Regulation at the European Level: the Florence Forum

1. Introduction

1.1. Electricity

the Florence Forum

1.2. Gas

the Madrid Forum

2. The Regulators' Group

3. The electricity and draft gas regulation

procedural issues

3.1. Implementation of the Regulation: direct effect

3.2. The comitology procedure: adoption of detailed guidelines

4. The Electricity Regulation

4.1. Tarification

4.1.1. The physical/economic principles underlying tarification

4.1.2. Cross border tarification and the Regulation

4.1.3. National transmission and distribution tariffs principles

4.2. Congestion Management

4.2.1. Introduction

4.2.2. Constraints on available capacity

4.2.3. Congestion management methods

4.2.4. Requirements of the Regulation

4.3. Locational factors

4.3.1. Introduction

4.2.2. The Regulation

4.4. Harmonisation of tariff structures

4.5. Transparency

4.6. Network Security

5. The Draft Gas Regulation and the Guidelines for Good Practice

5.1. Introduction

5.2. Charges for access to networks

5.3. Third party access services

5.4. Capacity allocation and congestion management

5.4.1. Allocation of new capacity

5.4.2. Contractual congestion

5.5. Transparency

5.5.1. Definition of relevant points

5.5.2. Level of detail to be published

5.5.3. Confidentiality

5.6. Balancing

APPENDICES

Appendix 1: Directive 2003/54/EC of the European Parliament and of the Council of 26 June 2003 concerning common rules for the internal market in electricity and repealing Directive 96/92/EC

Appendix 2: Directive 2003/55/EC of the European Parliament and of the Council of 26 June 2003 concerning common rules for the internal market in natural gas and repealing Directive 98/30/EC

Appendix 3: Regulation (EC) No 1228/2003 of the European Parliament and of the Council of 26 June 2003 on conditions for access to the network for cross border exchanges in electricity

Appendix 4: Draft Regulation of the European Parliament . and of the Council on conditions for access to the gas . Transmission networks (COM (2003) 741 final,
10.12.2003)

Appendix 5: Second Guidelines for Good Practice on access to gas networks, adopted by the 7th meeting of the European Gas Regulation Forum at Madrid on 24 25th September 2003

Appendix 6: Table illustrating the manner in which . Member States and accession countries implemented the first electricity Directive, as published in the Second Benchmarking Report, Commission Staff Working Document of 16th. April 2003.

Appendix 7: Table illustrating the manner in which . Member States and accession countries implemented the first gas Directive, as published in the Second Benchmarking Report, Commission Staff Working Document of 16th. April 2003

Appendix 8: Note of the Directorate General for Energy and Transport of the European Commission on Unbundling, issued on
22.01.2004

Appendix 9: Note of the Directorate General for Energy and Transport of the European Commission on Regulatory authority, Issued on
22.01.2004

Appendix 10: Note of the Directorate General for Energy and . Transport of the European Commission on Distribution, issued on
22.01.2004

Appendix 11: Note of the Directorate General for Energy and Transport of the European Commission on Exemptions, issued on
22.01.2004

Appendix 12:. Commission Decision of 11 November 2003 .. establishing the European Regulators Group.

European energy markets are undergoing rapid and fundamental change. Last year alone the Council and Parliament adopted the second energy liberalisation package, including the new electricity and gas Directives and the electricity Regulation. In addition, the Commission tabled new Directives on Security of Supply and a draft gas Regulation. This is affecting markets not only in the European Union, but throughout Europe, the Mediterranean, the Balkans and Russia.

These changes have affected not only energy law. Community competition law in the energy sector has been evolving quickly, reacting to the restructuring of the markets, and the new commercial partnerships that result.

EU Energy Law is the complete and essential reference work for all those advising on and implementing in practice the enormous changes in today’s electricity and gas markets. It is written for both legal specialists and for those working in industry responsible for overseeing the move towards open and competitive markets.

Christopher Jones is Deputy Head of Cabinet of Commissioner Piebalgs, the European Energy Commissioner. Prior to this he was the former Head of Unit for Electricity and Gas at the European Commission. He was responsible for negotiating the second electricity and gas Directives with the Council and the European Parliament.