The Internal Energy Market

The Third Internal Market package marks a watershed in the EU's efforts to introduce effective liberalization of its electricity and gas markets. Written by the key Commission officials and practitioners, this new and fully updated fourth edition includes in-depth contributions on: a common electricity and gas wholesale market * third party access * unbundling of Transmission System Operators and Distribution System Operators * National Regulatory Authorities * regulation of cross-border electricity exchanges * gas regulation * retail market development and public service objectives * derogations and exemptions * common network rules * security of supply * reporting and review of the Directives * implementation and entry into force * the internal energy market and neighboring countries * an introduction to the energy market of the US. *** Librarians: ebook available on ProQuest and EBSCO [Subject: EU Law, Energy Law]

The Third Internal Market package marks a watershed in the EU's efforts to introduce effective liberalisation of its electricity and gas markets. A real understanding of this complicated legislative package is vital for all energy companies operating in the EU, as well as major energy purchasers and advisors. This new and fully updated fourth edition includes; in depth contributions on a common electricity and gas wholesale market; third party access; unbundling of TSO's and DSO's; National Regulatory Authorities; ACER; regulation of crossborder electricity exchanges; Gas regulation; retail market development and public service objectives; derogations and exemptions; common network rules; security of supply; reporting and review of the Directives; implementation and entry into force; the internal energy market and neighbouring countries; and an introduction to the energy market of the US. The fourth edition of this highly acclaimed & leading title on this subject is written by the key Commission officials and practitioners.

"This audit sought to determine whether implementation of internal energy market policy measures and EU spending on energy infrastructure have provided security of energy supply benefits effectively. The EU's objective of completing the internal energy market by 2014 was not reached. Energy infrastructure in Europe is generally not yet designed for fully integrated markets and therefore does not currently provide effective security of energy supply. Financial support from the EU budget in the field of energy infrastructure has made only a limited contribution to the internal energy market and security of energy supply."--Page 4 of cover.

This book aims to describe the mechanisms of the internal wholesale electricity market in terms of the legal tools and practices used by electricity producers, the most important market participants. In this regard, the focus is on Northwestern Europe. Because of the book’s functional perspective, it is not limited to the external regulation of electricity markets at the EU level and also describes the business models and practices employed by electricity producers. Both the physical and financial marketplaces are examined and topics including electricity supply, balancing, transmission and derivatives are covered. The target for the completion of the EU’s internal electricity market was 2014. The internal wholesale electricity market is very important not only for electricity producers, suppliers and major end consumers but also for network operators, marketplace operators, electricity technology firms, investment firms and market regulators.

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.

A key message of this report is that full and effective implementation of proposed legislation will be necessary to ensure a true internal market for energy in the EU, but this alone will not be sufficient. In parallel, more attention must be paid to other, less-prominent fields. The report singles out i) the introduction of incentive-based network regulation and ii) the careful design of principal elements of the wholesale market, i.e. trade of electricity and gas for resale ("wholesale market design and rules"). Moreover, the internal market needs to be buttressed with the consistent application of competition rules across member states to avoid the creation of national champions. The report also argues that a functioning electricity and gas market depends on market-compatible solutions to security of supply and environmental issues and a rethinking of "executive agencies", whose use to date is inhibited by the Meroni doctrine.