Not only on the issue of ownership unbundling for electricity have the European Parliament and the Council taken markedly different opinions. The EP adopted, on 18 June, a report calling for a decidedly more powerful Agency for Cooperation of Energy Regulators (ACER). At the Energy Council, on 6 June, member states were anxious to protect their own national interests in the field of energy. The Council therefore backed a weaker version of the advisory agency similar to that proposed by the European Commission.

In adopting, by 580 votes to 40 with 48 abstentions, a report by Giles Chichester (EPP-ED, UK), the Parliament chose to considerably amend the original Commission proposal. Notable changes expand the tasks of the agency with more decision-making powers. MEPs voted for greater regulatory and financial independence. ACER should be able to issue opinions, technical recommendations and binding decisions for transmission system operators (TSOs). The agency is to provide an “integrated” framework for national regulators to cooperate. Other tasks include the supervision of the European networks of TSOs (ENTSO-E). ACER also adopts technical codes and rules drafted by the European networks of TSOs.

Additionally, ACER has detailed powers that include setting compensation tariff mechanisms between TSOs, coordinating national regulatory authorities and national energy crisis management mechanisms. Together with the Commission, ACER should, according to MEPs, promote interregional cooperation and integration into the internal energy market. Most importantly, ACER shall approve the ten-year investment plans drawn up by ENTSO-E and its counterpart, the European Network of Transmission System Operators for Gas (ENTSO-G). The agency is also empowered to enforce decisions and propose that the Commission impose fines. “Effective” sanctions may be given if barriers to cross-border trade in electricity or gas trade are not removed. The agency further “monitors” decisions and authorisation procedures with respect to cross-border infrastructure .

With these greater powers, though, comes more scrutiny. MEPs thus want to be able to “invite” and question in the competent committee any member or members of ACER, and concerned bodies.

According to MEPs, ACER should be governed by an “independent” six-member administrative board that can only be removed from office upon the proposal of the Commission following a decision by the Parliament. Two members each of the board are to be appointed by the Commission, Council and Parliament for a term of five years, renewable once . MEPs also considerably strengthened provisions as to the “independence” of the board. The Board of Regulators, composed of one regulatory official per member state, is no longer the advisory engine proposed by the Commission, but, in Article 12(1), now provides assent to the director before adoption of opinions, recommendations and decisions. The Board of Regulators should, in the MEPs view, be the only decision-making body of the agency on energy market regulation.

The Parliament’s legislative resolution is at www.europolitics.info > Search > 230460

Council: ACER still advisory

The Energy Council, on 6 June, supported the idea of an “advisory” regulatory agency that would exercise its well-circumscribed tasks concerning cross-border issues independently from member states and the Commission. Under the Energy Council’s agreement, ACER would remain an advisory body. Market participants and authorities at national level are to be duly consulted. In terms of structure, the Council wants member states to appoint five of the six members of the Administrative Board (the Commission would appoint only one member). There would also be “partial rotation” to ensure adequate participation of all member states over time.