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Electricity Sector - South
East Europe Regional Electricity Market (REM)
In addition to
focusing on the development of energy infrastructure networks,
the countries of the region have also started to cooperate in
the creation of a regional electricity market (REM). The
European Commission has spearheaded work in this field and
proposed that the countries open their national electricity
markets by 2005, based in the rules currently in force and
being developed by the European Union and integrated within the
EU's Internal Electricity Market. In practice this means that
the countries of SEE will have to establish compatible national
electricity market models in line with the EU Electricity
Directive1 (Directive
96/92/EC; OJ L 027, January 30, 1997) and secondary
legislation. This proposal was
discussed in detail and a preliminary agreement was reached at
the first South East Europe Electricity Regulation Forum (SEEERF),
held in Athens on 13-14 June 2002. A final agreement was
reached in the Athens Memorandum of
Understanding, signed 15 November 2002.
To achieve the
objective of opening the electricity markets by 2005, SEEERF
required the establishment of:
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National
Regulatory Authorities: which are completely independent of
the interests of the electricity industry, not later than
June 2003;
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National
Transmission System Operators (TSOs): by June 2003; and
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Unbundling by
2003: the TSOs should be fully independent from all
activities not relating to the transmission systems in terms
of ownership. In addition, the system operator should be
independent at least in terms of its legal form,
organization and decision making from all activities not
relating to transmission.
To guide this
process, a market development coordination and validation
structure has been put in place - see Figure 1 below, just
click on each section for further details. This structure was officially approved at a Ministerial Council meeting
on November 15, 2002.
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Figure 1 - Regional Structure for SEE Electricity Market
Development
In
support of the process, the Commission has financed
the establishment of a Regional
Energy
Community Secretariat (ECS) and
will help to build the mechanisms necessary for the smooth
operation of the Regional Structure for SEE Electricity
Market Development. The ECS will
assist the European Commission and the Permanent High Level
Group (PHLG) in guiding the process of creating an energy
community. It will work in close co-operation and under the
surveillance of the European Commission and report regularly
to the European Commission and to the relevant stakeholders
where appropriate.
The Ministerial Council
adopted on the 9th of December 2005 anElectricity
Transition Strategy Paper. This paper was adopted after
a substantive consultation process which involved all
stakeholders of the Athens process. The aim is not to
bind any party but to provide a consensus on the
challenges and offer some tentative suggestions as to
how on a common basis they can be overcome.
The main issues to be
addressed under the Electricity Strategy Paper are:
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The status
and reform of distribution companies;
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Payments
reform and transparent pricing policies;
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Compatibility of national market designs; and
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Phasing and
reform sequence;
Special
emphasis needs to be put on the social aspects of reform
The European Commission developed a
market options’ paper on the South East Europe
Electricity Market which thoroughly discussed at the 6th
and 7th Athens Forum and finally the Treaty Parties
agreed in an approach that outlines basic market design
elements notably requirements of the EU legislation. ).
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Directive 96/92 establishes common rules for the
generation, transmission and distribution of electricity.
It also lays down rules relating to the organization and
functioning of the electricity sector, access to the
market, the criteria and procedures applicable for calls
to tender and the granting of authorizations and the
operation of systems. |
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