• Due to the small size of their national markets, V4 countries (Czech Republic, Hungary, Poland and Slovakia) should undertake a joint implementation of the Gas Target Model that has been proposed for the European market. • A V4 level implementation would benefit from current interconnection plans and allow improved competition and liquidity, and a better exploitation of new market opportunities. • Joint V4 implementation proposals would be more likely to succeed if in line with private development interests and with other initiatives undertaken in the wider Central and Eastern Europe. • Theoretical available models span from a single price and balancing zone, to a single price zone with separate balancing areas (trading region), to market coupling and to independent connection to an external liquid market. • In practice, theoretical models are not mutually exclusive. The trading region between Austria, Czech Republic and Slovakia could be accompanied by transitional market coupling with Hungary and Poland, with a view to full integration. • Timely completion of interconnection plans and harmonised implementation of European Network Codes would underpin the process; on the contrary, single-handedly customer protection measures may hamper market development and integration. • Institutional development should be minimised and existing or market-driven forms of coordination should be preferred. Further TSO collaboration is likely, and could lead to alliances, as recently experienced by other European TSOs.
This report was prepared to inform the Carbon Market Policy Dialogue (CMPD) between the European Commission, as the regulator of the EU Emissions Trading System, and the regulatory authorities for [...]
EU gas and electricity prices have increased rapidly over the last few months and reached unprecedented levels. While the recent energy price dynamics reflect current market conditions and have little [...]