The Completion of the Internal Energy Market

2014: Completion of the Internal Electricity and Gas Markets

In the conclusion of its meeting on 4 February 2011, the Council of the European Union set 2014 as the target date for the completion of the Internal Electricity and Gas Markets. This goal was reaffirmed in the conclusions of the meeting on 22 May 2013.

Progress so far

Significant progress has been achieved towards meeting this objective, both in terms of the development of the required market and network operation rules and on the ground. In fact, in terms of rule-making, two network codes have already been adopted, a third one should be adopted soon and ten more have already been recommended for adoption to the European Commission and they could soon enter into the Comitology process. Moreover, a number of the main provisions in these network codes have already been implemented in practice, through the voluntary cooperation of national regulatory authorities (NRAs), transmission system operators (TSOs) and other stakeholders. This early implementation approach has been supported by the Agency for Cooperation of Energy Regulators (ACER), which has coordinated the definition of a number of Roadmaps for the rapid and effective integration of the electricity and gas markets, to deliver tangible benefits to EU energy consumers as soon as possible. In the electricity day-ahead time-frame, a single market-coupling platform operates, since May 2014, to determine prices and cross-border flows on a large part of the EU, from the Straits of Gibraltar to the Barents Sea. Similarly, a single platform is already used for allocating capacity on the majority of internal EU gas interconnection points.

Much still remains to be done

The first coordinated auction for long-term electricity cross-border transmission rights is expected to take place in the second half of 2015, on the basis of harmonised auction rules currently being developed. In the intra-day time-frame of the internal electricity market, the development of a single continuous-trading, market-coupling platform has been repeatedly delayed and the go-live is now expected by the end of 2015 at the earliest, more than two years later than originally planned. Liquidity of many gas hubs still needs to be enhanced so that they could provide robust price signals to determine the efficient flow of gas across the EU. A well-functioning internal energy market is also increasingly recognised as an important contributor to the security of energy supply of the EU, as well as a pre-requisite for any additional measure to promote such security.

This Workshop aims at reviewing progress in the creation of a single market in electricity and gas across the EU and at identifying what is still missing so that EU consumers can reap the full benefits.

The Workshop will be structured in three sessions. Session I will be devoted to assess energy consumers’ expectations from the internal energy market and the benefits already accrued to them. Sessions II and III will aim at reviewing progress towards the creation of a single market in electricity and natural gas, respectively. Registration is free of charge (restrictions apply). Please submit your request by filling out the registration form.