Christopher Bremme and Sebastian Pooschke of Linklaters LLP, Berlin discuss the findings of the Council of European Energy Regulators (CEER) Status Reviews on the implementation of the unbundling provisions of the 3rd Energy Package for Transmission System Operators (TSOs) and Distribution System Operators (DSOs), published 1 April 2016.
TSOs and DSOs play a significant role in the energy market, as they are responsible for delivering electricity and natural gas to end consumers and ensuring the long-term functioning of the system. Due to potential conflicts of interest in vertically integrated undertakings for market participants, unbundling has been at the forefront of the European Commission’s activities and legislative efforts since the 3rd Energy Package of 2009. Unbundling requires Member States to ensure the separation of the various stages of energy supply (generation, distribution, transmission, and supply).
In this podcast, Christopher Bremme and Sebastian Pooschke discuss the three different models for TSO unbundling which the Commission introduced: full Ownership Unbundling (OU), an Independent System Operator (ISO), and an Independent Transmission Operator (ITO), and assess the application and enforcement of these unbundling rules according to the findings of the CEER report. The less stringent rules for DSO unbundling are also examined and reviewed in relation to the report.