The Conference on the Regulation of Infrastructures is the annual event that brings together all the Areas of the Florence School of Regulation. The 9th edition of the Conference on the Regulation of Infrastructures will focus on regulation of convergence and will take place online on 24-26th June 2020 .

• On June 24 (12.00-18.00) and June 25 (10.00-16.30) paper presentations will take place online.
• On June 26 from 11.00 to 13.00 there will be a round table discussion with FSR Areas directors and a keynote speaker Alberto Pototschnig, FSR Energy, Part-time professor/ Former Director of the European Union Agency for the Cooperation of Energy Regulators (ACER) (2010-2019).

How to participate:

Please register for the round table discussion using the link on the right. One week prior to the round table discussion we will forward a full list of the scheduled paper presentations.

About the conference:

Most infrastructures have developed independently from one another and constitute self-contained socio-technical systems. This is, for example, the case of electricity, of gas, of telecommunications, of air transport, but also of railways. Consequently, also regulation was set up in a self-contained sector-specific manner.

However, this way of doing things cannot continue into the future, as the different infrastructure sectors are converging. This is, first, because of the technological and economic dynamics that has been triggered by liberalisation, and which has led to new technologies, often at the interface of the different sectors (e.g., power-to-gas), along with corresponding cross-sectoral business strategies.

Convergence also results from recent developments of digital networks (and in particular of the fifth generation of wireless technologies, the 5G) which increasingly act as driver of convergence between sectors, leading to cross-sectoral and much more integrated infrastructures services (e.g., “Mobility-as-a-Service” or MaaS). The take-off of the Internet of Things (IoT) based on 5G networks, which is addressed as the next Industrial Revolution, is expected to accelerate this trend. Finally, climate and other ecological challenges force a direct comparison among different sectors, such as in the case of externalities caused by energy generation (by renewables or by fossil fuels) or by the different transport models.

For all three reasons, a more convergent view of the different network industries is rapidly emerging … but will it translate into converging regulation or even into the regulation of convergence? Such is the topic of the 9th Florence Conference on the Regulation of Infrastructures.

More precisely, we look for contributions that link different infrastructure sectors, especially in terms of regulating interfaces between the different sectors, as well as regulating more integrated and converging sectors. Contributions utilising multidisciplinary as well as interdisciplinary approaches to regulation are welcome. Papers linking academia and practice, as well as policy research papers are particularly encouraged.

The conference is intended for academics such as PhD students, PostDocs and Assistant/associate/full Professors as well as academically minded practitioners.

List of selected authors and titles of their papers (* presenting author)

• Balogh, V. “Consumer protection – the case for converging regulation”
• Bischi, A.*, Thie, N., Schwaeppe, H., Schumann, K., Ferrari, L., Gordini, A., Paronuzzi, P., Punzo, A., Cakirer, K. B., Acan, B., Crisostomi, E., Desideri, U., Pozzi, M.*“Integrated planning of multi-energy systems: a comprehensive modelling framework”
• Brauer, J.*, Villavicencio M.  “The value of avoided curtailments – Increasing welfare through the involvement of TSOs in the operation of power-to-hydrogen units”
• Bruni, A. “5G deployment: The role and challenges of regulatory bodies in ensuring convergence within the EU”
• Ducuing, C. “The Broadband Cost Reduction Directive: a legal primer in cross-sector regulation of infrastructures”
• Gonçalves, E.*, Dutra, J., Resende, B.”Coupling Power & Natural Gas sectors in Brazil – is convergence possible in times of market reforms? The case of Reservoir-to-Wire Power Plants”
• Hoffmann, L.J. “Three entitlement problems in the digital economy and how antitrust (re-)allocates property rights“
• Knieps, G. “Sector coupling through the lens of 5 G networks”
• Mayol, A., Staropoli, C. “Giving consumers too many choices: a false good idea? A lab experiment applied to water and electricity tariffs”
• Nolden, C. “Locating value in sector coupling: powering railways with renewable energy”
• Paniccia, I. “Substitution or Integration between Traditional Public transport and New Forms of Mobility. Implications for Economic Regulation”
• Parcu, P.L., Innocenti, N., Carrozza, C. “The increasing complexity of 5G technology: is this an issue for competition?”
• Phang, S.Y. “The convergence of water, electricity and gas industries: Implications for PPP design and regulation”
• Van Soest, H. “Reconceptualising the Electricity System and the Internet as Two Interdependent Super-Critical Infrastructure Systems”
• Vanrykel, F. “Electrification of road transport and the future of infrastructure financing: a look at energy taxes”

Conference structure

The format of the Florence Conference on the Regulation of Infrastructures is unique, in that we favor quality over quantity:

• Each presenter has 45’, which includes 20’ of presentation, 10’ of qualified feedback and 15’ of discussion with the audience;
• Feedback will be given by senior professors associated with the Florence School of Regulation who are specifically knowledgeable about the topic at hand;
• Papers retained for publication will receive additional feedback beyond the Conference.

Timeline

• Submission of the abstract by 14 February (download the guidelines) using the online form. For any issues regarding the submission, please contact Ms Irina Lapenkova at FSR.Transport@eui.eu;
• Notification of acceptance by 2 March 2020;
• Submission of the full paper by 24 May 2020; participants who fail to submit a full paper by this deadline will be automatically removed from the programme;
• Conference on 24-26 June 2020 online.

Guidelines for the abstract

• 600-1000 words
• Title of the paper & keywords
• Name of the author(s) and full address of the corresponding author
• The aim and methodology of the paper
• Results obtained or expected

Publication opportunities

• Papers will qualify for the Journal Competition and Regulation in Network Industries (SAGE)
• A summary of the 4-5 best papers will have the chance to be published in the dedicated issue of the Network Industries Quarterly (Issue 22, Vol 3, September 2020), which distributes to approximately 4000 people worldwide.

Learn more about the 8th edition of the conference, which took place in Florence on June 20 and 21 2019 here. 

Organising Committee

• Prof Simone Borghesi (EUI, Part-time professor and Director of the Climate Area of the FSR. Siena University, Professor)
• Prof Matthias Finger (EUI, Part-time professor and Director of the Transport Area of the FSR. EPFL, Professor and Director of the Chair of Management of Network Industries)
• Prof Jean-Michel Glachant (EUI, Robert Schuman Chair, Director of the FSR, Director of the Energy & Climate Area of the FSR, Holder of the Loyola de Palacio Chair)
• Prof Juan Montero (EUI, Part-time professor of the Transport Area of the FSR, Professor of Administrative Law and Regulation in UNED University (Madrid)
• Prof Pier Luigi Parcu (EUI, Part-time professor and Area Director of the FSR Communications & Media, CMPF)
• Prof Stéphane Saussier (EUI, Part-time professor and Director of the Water Area of the FSR. IAE de Paris, Professor and Director of the EPPP Research Group)

The next Commission will play a decisive role with respect to the future of European energy policy.

the FSR European Energy Policy and Law Conference is aimed to discuss these issues and to draw some first conclusions on what should be the next Commission’s energy priorities.

• Session 1 will look at the challenges in delivering a cost-effective and competitive EU electricity system, and achieving the EU and Member States’ renewables targets whilst meeting the goals of competitiveness and energy security.
• Session 2 will look at the role of gas – natural, biomethane, green and low-carbon – in the EU’s long-term energy system:
• Session 3 will look at what will be the key infrastructure challenges moving forward, and what the next Commission will need to do to deal with them.
• Session 4 will look at the challenges facing the EU’s competition policy to evolve and to meet the rapid changes taking place on EU energy markets.

Keynote address:

Miguel Arias Cañete | European Commissioner, Climate Action & Energy

Péter Kaderják | Minister of State for Energy Affairs and Climate Policy of Hungary

Among the confirmed speakers:

Jean-Michel Glachant | Florence School of Regulation

Christopher Jones | Florence School of Regulation

Andris Piebalgs | Florence School of Regulation

Paula Abreu Marques | European Commission, DG Energy

Florian Ermacora | European Commission, DG Energy

Jane Amilhat | European Commission, DG Energy

Thierry Bros | Oxford Institute for Energy Studies

Giles Dickson | Wind Europe

FSR Workshop organised by the FSR Energy Innovation Area, in cooperation with the European Commission and The Alliance for Internet of Things Innovation (AIOTI)

Digital Energy Marketplacesmig

The role of smart contracts in the definition and coordination of investments, architectures and governance

#DigitalEnergyMarket

Technological innovation may just increase the efficiency of an industry, significantly transform it, or even disrupt entirely it. To transform or to disrupt, innovation needs to change the industry players and the way they interact. For example, industry change may be driven by consumers pushing the path from smart technologies – which any utility may implement itself to manage its own assets – to smart transactions, where smart technologies create new coordination tools within the industry.

By gathering practitioners from the industry, academics and representatives of the institutions, this workshop develops further the debate started at the Open Marketplaces & Enabling Technologies workshop that took place last March in Brussels. The various sessions of the workshop will explore how distributed ledger technologies like the blockchain can effectively transform the energy industry and enable new forms of interaction among the actors of the supply chain. The possible emergence and the organisation of new platforms and contractual arrangements will be investigated. Finally, the workshop will address the governance and regulatory issues that the adoption of these new technologies raises.

Participation in the event is upon invitation only.

Towards an economic regulator of Air Traffic Management (ATM) – 12th Florence Air Forum in Budapest

Improving the Air Traffic Management (ATM) performance is the main goal of the Single European Sky (SES) initiative. The EU’s SES legislation has introduced a performance scheme which defines performance targets in the key performance areas of safety, environment, airspace capacity and cost-efficiency through the adoption of Union-wide performance targets and approval of binding consistent National or Functional Airspace Blocks (FAB) performance targets. It is through this scheme that monopoly air navigation service providers are regulated in Europe.

The performance scheme was first established in 2009 as part of the second SES package. The first reference period ran from 2012 to 2014. The second reference period runs from 2015 to 2019 and is governed by Commission Implementing Regulations (EU) 390/2013 and 391/2013. Rules were revised in 2019 with the adoption of Commission Implementing Regulation (EU) 2019/317, which sets out the provisions applying to the third reference period (RP3) from 2020 to 2024.

To assist the Commission and national supervisory authorities in the implementation of the performance scheme for air navigation services, the Commission first designated in 2010 the Performance Review Commission of Eurocontrol as the Performance Review Body (PRB) of the single European sky. This set up was then changed in 2016/2017. Since then, the PRB acts an independent group of experts. It is composed of 9 members assisted by a support team.

Recent main tasks of the PRB have been to monitor the performance of air navigation service providers and to provide recommendations to the Commission on the performance targets for RP3. In February 2019 the PRB published its final recommendations for the Union-wide performance targets in air navigation services for 2020-2024.  These targets relate to the improvement of flight punctuality, encouragement of more efficient flight paths to reduce the environmental impact of air traffic, and the cost reduction of service provision to the benefit of airlines and passengers, while ensuring the highest safety standards. Following this recommendation, Commission Implementing Decision (EU) 2019/903 setting the Union-wide performance targets for the air traffic management network for the third reference period was adopted on 29 May 2019.

During the consultations and preparations organized ahead of RP3, it became apparent that the revision of the rules for RP3 could be only limited in scope, focusing in particular on simplifying and clarifying the legal provisions. A wider reflection on the future of economic regulation in ATM is necessary in order to tackle key issues faced in the sector.

While RP3 preparations are underway and performance targets have already been defined for that period, this Forum therefore aims at planning the time after RP3 by exploring the possibility to improve the economic regulation and to move towards an economic regulator of ATM.

More specifically, the forum seeks to answer the following three critical questions:

• Balance sheet of performance and charging scheme so far. What are the main weaknesses and why do we need to move to an economic regulator for ATM?
• Economic regulation of monopolies. What can we learn from others?
• How to set up an economic regulator organisationally?

FINAL PROGRAMME

SPEAKER PRESENTATIONS:

Introduction to the forum:

Matthias Finger FSR TRANSPORT

Balance sheet of performance and charging scheme so far: What are the main weaknesses and why do we need to move to an economic regulator for ATM?

Regula Dettling-Ott PRB

Brian Pearce IATA

Kalman Seregelyes HungaroControl

Economic regulation of monopolies: What can we learn from others?

Alberto Pototschnig ACER

Marcin Cichy BEREC

Anne Yvrande-Billon ARAFER

How to get to an economic regulator organisationally?

Anne Lambert UK CAA

Digitalisation in rail freight transport: challenges and opportunities

BACKGROUND

In its 2011 White Paper the Commission fixed the objective that 30% of road freight over 300 km should shift to other modes such as rail or waterborne transport by 2030. Nevertheless, EU and Member State efforts in this area have not yet delivered satisfactory results – rail freight’s modal share stubbornly stagnates around 17%.

At the same time shifting medium-long trips from road freight to rail is an important part of the solution to achieve the Commission long-term vision. In addition to supporting decarbonisation objectives, a shift to rail would also ease congestion on roads, lower the pressure on road infrastructure by taking over the heaviest loads and reduce the risks linked to transporting dangerous goods.

To ensure that rail freight takes off, its performance needs to improve drastically in terms of quality and efficiency. The sector and legislators need to think fresh and bold, and consider holistically what can be done to break the stagnation.

To this end, DG MOVE is considering setting up a comprehensive EU strategy for rail freight as part of a modern multimodal transport system, supported by all stakeholders, with clear actions, targets and implementation schedule. Embracing new innovative business models and digital tools is a key part of the solution by enabling:

• increased efficiency: optimise the use of resources by sharing operational data and using digital solutions;
• resolved capacity shortages, by using modern network-level traffic planning and management tools and enhancing the performance of logistic chains
• improved offer, i.e. to provide flexible, end-to-end services integrated to logistical chain, tracked, traced and delivered on time.

The development of Rail Freight Corridors (RFC) remains the key element of the Commission’s policy to boost rail freight. The future rail strategy would therefore relay also on the results of the on-going evaluation of the RFC Regulation EU 913/2010. The regulation aims at improving the quality of international rail freight services by setting up a framework for international cooperation to provide high-quality capacity for international freight services. It entered into force in 2010 but the results are so far modest.

The 18th Florence Rail Forum, jointly hosted by the Florence School of Regulation and the European Commission’s DG MOVE, will discuss the opportunities and challenges to wider digitalisation of the rail sector, including how digital solutions can be used to better govern and operate the Rail Freight Corridors.

Digitalisation can and will affect the development of the Single European Railway Area as foreseen by the European Commission since 2012 (Directive 2012/34/EU). In support of the Commission’s focus on digitalisation, in 2016 the European trade associations CER, CIT, EIM and UIC presented the joint Roadmap for digital railways highlighting the opportunities and challenges of rail digitalisation.

In 2017 an even broader set of stakeholders, including CER, EIM, ERFA, UIP, UITP and UNIFE signed the Joint Rail Sector Declaration which reaffirmed their commitment to the continued provision of products and services using digital technologies to the benefit of consumers and with a view to contributing to the Digital Single Market.

Unlocking the full potential of new technologies and big data will necessitate a change in the way the entire logistics chain is organised and managed. In recognition of this, the European Commission initiated the creation of the Digital Transport and Logistics Forum (DTLF) in 2017. The DTLF is an open and collaborative platform that brings together Member States, public entities and other relevant organisations to exchange knowledge and develop policy and technical recommendations for the European Commission in the fields of transport and logistics digitalisation across all modes of transport.

Digitalisation is not a goal per se but rather a means to improve customer experience, operations and to increase capacity offer of RFCs. Though positive changes are already happening in the area, the consolidation of digital technologies and business processes in the sector remains an outstanding challenge. The 18th Florence Rail Forum will therefore seek to answer the following four critical questions:

• How can sharing of operational data improve the efficiency of operations? What are the barriers to sharing such data? Experience and lessons learnt from other sectors.
• Is digitalisation contributing to the modernisation and simplification of the RFCs? What is the potential of digitalisation for better international rail freight capacity?
• What is the impact of deployment of digitalisation in rail freight? In particular regarding client interface and integration in the logistical chain?
• What can we realistically achieve in the coming years?

PRESENTATIONS

• How to Revitalise Rail Freight with Digitalisation?, Matthias Finger, Florence School of Regulation/EUI; Ecole Polytechnique Fédérale de Lausanne
• Rail Freight: the Sick Man of Europe?, Maurizio Castelletti, European Commission, DG MOVE
• Rail Freight Corridors: Can digitalisation bridge the gap between potential and reality?, Reinhard Haller, European Commission, DG MOVE
• How can sharing of operational data improve the efficiency of operations? What are the barriers for sharing such data?, Paul Hegge, LINEAS
• How can sharing of operational data improve the efficiency of operations? What are the barriers for sharing such data?, Kirsti Laurila, Traficom
• Is digitalisation contributing to the modernisation and simplification of the RFCs?, Harald Reisinger, RNE
• Digitalisation between customer needs, regulatory demands and operational requirements, Martin Schmidt, SBB Cargo International
• Digitalisation of the (international freight) capacity planning/production process: challenges and solutions, Eric Cosandey, SMA and Partner AG
• Cefic Position on Rail Freight and Rail Freight Corridors, Frank Andreesen, Covestro
• More Efficiency Through Digitalisation in Combined Transport, Ralf-Charley Schultze, International union for Road-Rail Combined Transport (UIRR)
• How to Revitalise Rail Freight with Digitalisation?, Alfred Pitnik, Rail Cargo Group
• The Intermodal Business of Metrans. The Global Intermodal Solution, Robert Groiss, Metrans
• Ensuring an inclusive sectoral transition to a digitalised rail sector, Alberto Mazzola, European Economic and Social Committee
• The Use of Translation Tools on Locomotives, Annette Kraus, Deutsche Bahn

Towards a EU-wide Multimodal Ticketing and Payment Systems

BACKGROUND

The attainment of seamless multimodal door-to-door mobility has emerged as a clear priority on the EU policy agenda. Having declared 2018 as the ‘Year of Multimodality’, the European Commission has over the past year put together a number of legislative and policy initiatives relating to better infrastructure, connections, incentives and digital solutions, with a view to promoting the shift towards a fully integrated, multimodal and sustainable transport sector.

Achieving this goal will largely depend on creating favourable conditions for transport users, which among other things includes the creation of ‘multimodal ticketing and payment systems’. In practical terms, this means that the purchase of tickets in one go would enable passengers to travel using different transport modes provided by numerous operators. As implied by this definition, an integrated ticketing system relies on the close collaboration of multiple players on the execution of a number of steps throughout the whole lifecycle of the value chain.

An overarching EU framework may be needed for multimodal transport especially in cross-border contexts. Indeed, different approaches to ticketing and payment systems have been observed to date across the different EU Member States, and in some instances even across different regions of the same country.

WATCH THE INTERVIEWS

Access to fare data, in particular, is one important pre-condition to enabling multimodal EU-wide ticketing and payment systems. At present, however, there is no common EU rules on access to fare data (beyond the Delegated Regulation 1926/2017 on EU multimodal travel information services), which increases the complexity and poses a hurdle for the development of multimodal EU ticketing and payment systems. In addition, the absence of common rules and standard, data are collected and made available in different formats only based on common standards developed by the parties of the commercial agreement.

The development of a common EU-wide definition for multimodal ticketing and payment systems will be an important, yet challenging, task ahead of EU policy makers in ensuring streamlined national approaches and safeguarding the possibility for Europeans across the continent to enjoy EU-wide door-to-door mobility.

This forum gathers European- and national-regulators, public transport operators, industry representatives, and academics for a discussion on the challenges and enablers to delivering an EU wide multimodal ticketing and payment system. The event will take stock of existing EU-legislation and will go on to examine possible EU actions and initiatives that could be undertaken in view of achieving it. More specifically, forum participants will consider the following critical questions:

1) How can access to fare data be enabled?
2) What lessons can be drawn from the air ticket distribution market?
3) What are the possible EU actions and initiatives, both legislative and non-legislative, which could be undertaken in view of achieving an EU-wide multimodal ticketing and payment system?

FINAL PROGRAMME

PRESENTATIONS:

Towards EU-wide Multimodal Ticketing and Payment Systems, MATTHIAS FINGER, Florence School of Regulation/EUI;  Ecole Polytechnique Fédérale de Lausanne

Integrated ticketing, Matthew Baldwin, DG MOVE, European Commission

Remaining Challenges for EU-Wide Integrated Ticketing and Payment Systems, Isabelle Vandoorne, DG MOVE, European Commission

Finnish solutions for opening up fare data, Jussi Aholainen, Finnish Transport and Communications Agency (Traficom)

How can access to fare data be enabled?, Eric Mink, Ministry for Infrastructure and the Water Management (Netherlands)

How can access to fare data be enabled? Giovanni Martino, SHARE NOW

How can access to fare data be enabled?, Vittorio Carta, Deutsche Bahn

Lessons learned from CRS Code of Conduct , Juan Jesús Garcia Sanchez, Amadeus

What lessons can be drawn from the air ticket distribution market?, Mariana Papusoi, Air France

Airline Distribution, Johannes Walter, Lufthansa Group

MaaS in facilitating seamless EU wide multimodal ticketing and payment, Piia Karjalainen, MaaS Alliance

Possible EU actions and initiatives (legislative and non- legislative) to achieve EU-wide multimodal ticketing and payment systems, Caroline Berthomieu, Jaap de Bie, VDV eTicket-Service GmbH & Co. KG

Balancing Environmental, Energy Security and Climate Objectives in the Norwegian Electricity System

Professor Henrik Bjornebye, University of Oslo and visiting fellow of the Energy Union Law Area, Florence School of Regulation, will provide a brief overview of the Norwegian licensing system before considering the legal requirements for the revision of hydropower concessions: Which concession requirements are subject to revision, and to what extent? How does the legal framework balance the concessionaire and the public’s interest in ensuring a high level of electricity production on the one hand with the interest of protecting the local environment on the other hand? And to what extent is the Norwegian scheme affected by EU and EEA law?

Norway’s electricity production is based almost entirely on hydropower, accounting for 94.3 per cent of the domestic production capacity. Reservoir power plays a particularly important role in the electricity system given its ability to provide balancing services. At the same time, these facilities also raise local environmental challenges and are subject to a number of licensing requirements. Concessions for Norwegian reservoir hydropower are usually awarded on a time-unlimited basis and the license requirements are subject to revision every 30 years. The main purpose of these revisions is to update the environmental requirements to reflect today´s needs. The license requirements in more than 400 hydropower concessions may be subject to revision by 2022, making this an important topic in the Norwegian electricity sector over the coming years.

Download the presentation (PDF)

Interested in the topic? Check our Workshop on the Management of Hydropower in the Energy Union, 10 October in Florence

“The Transformation of Economic Law” is dedicated to Hans-W. Micklitz who, throughout his fruitful career as a legal scholar, has gained international recognition for his studies in the diverse areas of law – in particular, Consumer Law in Europe in the energy, telecommunication and financial service sectors.

Dr Lucila de Almeida, Research Associate and Scientific Coordinator of the Online Executive Training on “Regulatory Delivery” at FSR, will be launching her new book on 7 June 2019, together with her co-authors, during a special event held in honour of Hans-W. Micklitz’s academic career.

As Hans-W. Micklitz’s term as a holder of the Chair for Economic Law at the Law Department of the European University Institute approaches its end, Dr Lucila de Almeida and FSR congratulate him for the outstanding contribution and pioneering advocacy aimed at putting consumers at the centre of the EU law and policies.

More information about the book “The Transformation of Economic Law – Essays in Honour of

Hans-W. Micklitz” can be found here.

Further detail about the event and registration form can be found here.

The aviation sector has experienced continued growth over the past years, which has significantly enhanced connectivity within Europe, and translated into important socio-economic benefits. To put things into perspective, European airports alone employ roughly 12.3 million people and generate €675 billion each year (4.1% of GDP) in Europe. As air transport becomes increasingly prominent for both citizens and businesses, traffic flows will continue on a firm upwards trajectory and are, in fact expected to double in Europe by 2035. This surge in air transport demand is placing increasing pressure on scarce airport infrastructure and capacity, which in turn can lead to delays, weakened connectivity and lowered quality of services provided.

Following the creation of a single market for aviation in the 1990s, and in light of continuous growth in air transport, the need for a regulation on airport slots was acknowledged in order to ensure an efficient use of capacity at congested airports. Back in 1993 the EU adopted its first common rules for the allocation of slots at EU airports in line with the IATA’s Worldwide Scheduling Guidelines. Slots, granting the right to take-off or land at an airport at a specific time period, are allocated by independent coordinators on the basis of historic rights (or ‘grandfather rights’) at the given airport. What is more, slots ownership is reassessed on an annual basis, whereby failure by an airline to use 80% of its allocated slots could result in their loss and reallocation to other airlines in the subsequent year (i.e. the so-called ‘use it or lose it’ rule).

In 2007 and 2008 the Commission adopted communications on the application of the Slot Regulation. Besides seeking to ensure better enforcement of the rules, the Commission issued guidelines on the possibility of exchanging slots for money, also referred to as ‘secondary trading’. The communication furthermore addressed critical aspects relating to safeguarding coordinators’ independence and facilitating the access to slots to new entrants.

While the EU slots regime has managed to contain flight delays to a reasonable level, the economic efficiency of the slot system has been put into question, in terms of capacity utilisation and allocation of slots to airlines. What is more, the regime has been criticised for inhibiting competition between airlines, by freezing slot allocation and by giving an advantage to incumbent airlines as a result of the ‘grandfathering’ rules. Not least, the “use it or lose it” rule has led to behaviours by airlines holding on to slots even if they are unable to use them profitably, as opposed to making them available to competitors or new entrants. This has manifested itself in the form of empty ‘ghost flights’, wasted jet fuel, excess climate-warming CO₂ emissions and lost airport capacity.

An analysis carried out in 2010-11 on the functioning of the Slot Regulation showed that the slot allocation system required improvements, however, the resulting recast process launched by the Commission failed to reach consensus on the way forward. As a result, 9 years later, the slot allocation regime remains unchanged, whereas air transport is continuously evolving. In 2019, the European Commission’s DG MOVE has commissioned a study to assess the current slot allocation regime and to explore future options for evolving the regime.

It is widely recognised that the efficiency of the slot allocation regime needs to be improved. To this end, should there be a shift away from the current grandfathering system? Should there be a move towards market based approaches such as primary slot auctioning, secondary slot trading and ‘congestion pricing models’? Should there be more consistency between airport charges and slot allocation? Should airlines willing to land or take-off during peak hours accept to pay higher prices for more attractive slots? Should rules be revisited to guarantee that new entrants have better access to attractive slots? Should collected revenues flow into a ‘central infrastructure pot’ for investments aimed at alleviating airport capacity issues and supporting the uptake of clean and innovative aviation technologies?

This forum gathers policy makers, industry representatives, and academics for a discussion on the design flaws of the current EU slot allocation regime. Subsequently, the event will examine the needs and reform options for a future slot allocation framework, drawing on national and local best practices and lessons learnt. More specifically, forum participants will consider the following critical questions:

• How effective has the existing slots regime been in ensuring optimal connectivity, airport capacity utilisation and allocation of slots to airlines? Are there misuses of the rules that could be avoided?
• What are the various administrative- and market-based measures (e.g. auctioning, congestion pricing models) that could be considered in improving the regime’s efficiency?
• What are the possible ways forward for reforming the EU’s airport slots regime? (E.g. synergies with Airport Charges, Public Service Obligations, Traffic Distribution Rules, others?)

Read our European Transport Regulation Observer policy brief for the main takeaways from the discussions.

FINAL PROGRAMME

SPEAKER PRESENTATIONS:

Introductory remarks & presentation of report findings:

Matthias Finger FSR TRANSPORT

Stephen Wainwright STEER

How effective has the existing slots regime been in ensuring optimal airport capacity utilisation and allocation of slots to airlines?

Morgan Foulkes ACI EUROPE

Rene Maysokolua FLUKO

Monique De Smet IATA

Matthis Birenheide EUROCONTROL

What are the various administrative- and market-based measures (e.g. auctioning, congestion pricing models) that could be considered in improving the regime’s efficiency?

Gunter Heinrich FRAPORT

Alasdair Adie ACL

Senthuran Rudran UKCMA

What are the possible ways forward for reforming the airport slots system?

Ignacio Biosca AENA

Eric Herbane COHOR

Robert Baltus EBAA

The Workshop “The new role(s) of consumers” will explore how the latest policy and regulatory developments promoting “consumers’ empowerment”, as defined by the “New Deal” and the Clean Energy Package, will assign new roles to consumers and provide new opportunities to consumers. The Workshop will also assess any risk of exclusions for vulnerable consumers and the impact of empowered consumers on the market and the implications for market and system operations.

The “Clean Energy for All Europeans” Package places consumers at the centre of the energy transition, providing them with a higher degree of protection, empowerment and enhanced market choices. Thanks to price comparison tools, dynamic price contracts, smart metres and the formation of citizens’ energy communities, customers will be able effectively to play a more active role in the market. Furthermore, switching supplier will not imply any fees and, by 2026, such transition will have to take place within 24 hours.

However, consumers have shown a degree of inertia. Until now, consumers’ empowerment was mostly provided by their ability to switch supplier, but annual switching rates have remained low in most countries (the European average is 6-8% for both electricity and gas). While switching rates are not necessarily the ultimate indicator of the benefits of liberalisation for consumers, a more detailed analysis performed by the Agency for the Cooperation of Energy Regulators shows that switching rates are low even in some Member States where the potential gains from switching are substantial.

The Workshop will be structured in two sessions:

• Session 1 will investigate how consumers can effectively be empowered and engaged, ensuring that “no one is left behind” and delivering a just and inclusive transition. Practical applications of the new role of consumers will also be presented.
• Session 2 will look at the regulatory and market design implications of consumers’ active role, focusing on the key requirements needed to deliver and enable effective wholesale and retail markets for the benefits of consumers.

This workshop is exclusively open to national regulators, representatives from public bodies and associate & major donors of the FSR Energy area.

This FSR Policy Workshop on energy storage for a flexible multi-energy system

Storing energy is becoming key to create a more flexible and reliable energy system. Cost-effective and efficient storage is the next obstacle that needs to be overcome in the move to a higher and rapid deployment of renewable energy sources within the EU energy mix.

More complementary storage technologies are needed to support EU’s transition to a low-carbon economy and to meet different flexibility needs of a multi-energy system. Where RES penetration will displace an increasing share of dispatchable energy sources from the system, the need for seasonal storage becomes obvious to overcome risk of curtailment in the event of surplus and risk of disruption in the event of deficit. Already existing gas storage infrastructure close to demand centers can offer short, mid and long-term / seasonal flexibility and storage solutions at terawatt-hour scale. In addition, storage also enables a closer integration of the gas and electricity sectors through “sector coupling”.

What is the appropriate regulatory and market design to support the integration of higher shares of renewable energy with minimum curtailment and at optimised system cost? How to assess externalities related to the system and insurance values in a cross-sectoral flexibility market to unlock the full potential of large-scale storage?

To address these and other related issues, the Workshop organised jointly with Gas Infrastructure Europe (GIE) will be structured in three sessions:

• Session 1 will review innovative services developed by gas storage operators to facilitate the future role of gas system to meet climate change targets. These innovative solutions include, amongst others, power-to-gas, hydrogen storage and decentralised storage.
• Session 2 will expand the discussion to tackle a broader issue of what is needed to cope with both decarbonisation and competition goals.
• Session 3 will be devoted to the regulatory framework for a sustainable storage market. An adequate market design that could enable sector coupling and deliver benefits, thus making the best use of a greater penetration of renewables to meet the EU decarbonisation objectives.

The event will conclude by issuing policy recommendations.

Among the confirmed speakers:

• Cécile Prévieu | Storengy
• Axel Wietfeld | Uniper Energy Storage
• Stefan Moser | European Commission
• Gergely Molnar | International Energy Agency
• Frits van der Velde | EnergyStock
• Michael Schmöltzer | Gas Infrastructure Europe

In this online debate, we discuss EU Climate Action Priorities in the Coming Five Years.

Online debate with:

Baroness Bryony Worthington
(former Labour Party spokesperson on Energy and Climate Change; Visiting Research Fellow at University of Cambridge)

Jos Delbeke 
(former Director-General for Climate Action at the European Commission, Professor EUI)

Moderated by:

Simone Borghesi 
(Director, Florence School of Regulation-Climate, EUI)

What should the top priorities for EU Climate Action be within the changing political landscape (European Parliament elections, renewal of both the European Commission’s President and the European Council’s full-time President, Brexit…)? What are the issues to be tackled next by the incoming EU leaders, and how might the UK retain its leadership role for climate action from outside the European Union?

In this online debate Baroness Worthington and Professor Delbeke, two senior policy-makers and academics with many years of experience in designing climate policies will share their “wish list” of the three top priorities for EU Climate action for the next 5 years.

How this online discussion works:

Connect from your office or home with any device (smartphone, tablet, computer) and watch the live discussion. You will have the possibility to submit written questions to our speakers that will be addressed during the discussion. You can also share comments and links in the discussion forum. Participation is free of charge, but registration is required.