sou · GRB3113 · 2004-01-01 00:00:00 — This commission has been tasked with following the work in progress within the EU on formulating common rules for the internal electricity and natural gas markets, and with proposing legislation and other bodies of regulations needed for the purpose of implementing Communitys revised Directives concerning the electricity and natural gas markets. The commission was also tasked with considering, and where relevant proposing, any changes necessitated by the EC Regulation on cross-border exchanges in electricity. The task also includes performing a complementary analysis of the question of a more stringent separation of electricity network operations and operations conducted under competitive conditions. The Electricity Market Directive The Directive comprises both quantitative changes, such as increased market transparency, and qualitative changes relating to the legal separation of transmission and distribution system operators, the unbundling of accounts, rules for network access, and the of an independent regulatory authority that will give advance approval at least of the methodologies used in setting tariffs. In addition, the Directive includes certain new aspects relating to public services, the disclosure of information on where the electricity comes from (the energy sources for electricity generation), security of supply, the procurement of new capacity, rules for procuring electricity to cover network losses, reporting rules and rules concerning trade with a third country. In addition to the main points listed here, the Directive also includes an extensive and detailed body of regulations. In the findings of this report, proposals are made concerning the changes that need to be made to Swedish electricity legislation in order to incorporate the Directive into the Swedish legal system. The findings also make proposals for how the reporting procedures required by the Directive should be implemented. Disclosure of information on energy sources for electricity generation We propose the introduction of a requirement stipulating that electricity suppliers shall specify the energy sources used for the generation of the electricity that they sell, either on their invoices or in conjunction with invoicing procedures, as well as in advertising that targets electricity users. This information shall be based on the previous years average fuel mix. If the electricity is purchased via a power exchange or imported from a country outside Community, the information shall be based on aggregate figures from the previous year provided by the exchange or importer in question. In conjunction with the disclosure of information on the energy sources used for electricity generation, electricity suppliers shall, by referring to existing reference sources, also provide information on the environmental impact in the form of emissions of CO2 and radioactive waste caused by the fuels included in the previous years average fuel mix. We propose that the impending development of methodologies for specifying and calculating the energy sources and environmental impact of electricity generation shall be handled through agreements between the various market players. In order to enable electricity suppliers to meet the proposed obligations to disclose information on the energy sources used for the generation of their electricity, we propose that producers, importers and suppliers of electricity shall be obliged, when so requested, to provide details about the energy sources used for the generation of the electricity they sell. Procuring electricity to cover network losses We propose that all legal entities conducting network operations and procuring electricity to cover network losses shall do so in accordance with transparent, non-discriminatory and market-based procedures. When formulating network tariffs for the transmission and distribution of electricity, we propose that the network concessionaire shall pay particular attention to the number of connection points, their geographic location, the quantity of energy transmitted, the power output subscribed to, and the costs for being connected to transmission networks, as well as the quality of the electricity transmitted. When setting the level of non-recurring connection fees, we propose that the network concessionaire shall pay particular attention to where the connection is located and the agreed power output for which the connection is used. We also propose that the network authority shall reach a decision within a set time limit concerning disputes relating to connection fees in accordance with the Swedish Electricity Act. According to this proposal, a decision shall be made within two months. If necessary, this deadline may be extended for a further two months. If the applicant consents to it, the deadline may then be further extended. Terms and conditions governing the provision of balancing services We propose that the terms and conditions governing the provision of balancing services shall be objective, non-discriminatory and cost-reflective. We propose that the network authority shall be charged with giving advance approval of the objective, non-discriminatory and cost-reflective nature of the terms and conditions governing the provision of balancing services. An approval decision shall be made within two months of the authority receiving a request for the same. If a decision is not made within two months, the terms and conditions governing the provision of balancing services shall be considered approved with regard to the question of their objective, non-discriminatory and cost reflective nature. We also propose that an approval decision shall be valid immediately and that it shall be possible to appeal against such decisions to a general administrative court. Unbundling of network operations and operations conducted under competitive conditions In order to clarify the issue of the unbundling of network operations on the one hand and electricity generation and trade on the other, we propose that a member of the Board, Managing Director or company signatory at a legal entity conducting network operations shall be barred from serving as a member of the Board, Managing Director or company signatory at a legal entity involved in electricity generation or trade. In order to ensure that the transmission and distribution system operators realise the importance of acting objectively and in a non- discriminatory , we propose that anyone conducting network operations with at least 100,000 connected , or anyone holding a network concession for a transmission line, shall be required to draw up a regulatory plan that clearly specifies the measures taken to counteract discriminatory conduct. These measures shall be presented in an annual report that shall be submitted to the network authority and made accessible to the public. Regulation concerning cross-border exchanges in electricity This Regulation comprises general rules concerning a compensation mechanism that will apply to system operators responsible for cross-border electricity flows. It also contains information concerning the capacity of interconnectors, and principles for the formulation of national network tariffs, as well as principles and guidelines for capacity allocation in interconnectors. The regulation also contains rules stating that new interconnectors may be exempted from certain of the stipulations in the Regulation and in the Directive concerning the electricity market, and from reporting to the EC Commission. It also contains sanctions and procedures for authorising the Commission to issue guidelines following a committee procedure. An EC Regulation is binding in its entirety, and directly applicable in every member state. No special measures are therefore required in order to incorporate the Regulation into the Swedish legal system. We have not found any Swedish rules or regulations that conflict with the EC Regulation, and no changes arising because of it are therefore proposed here. We do however propose that the network authoritys regulatory activities should be expanded to include monitoring of compliance with the Regulation, and with the guidelines and conditions issued on its basis. Decisions concerning exemptions from certain rules for new interconnectors shall however, as is the case with the granting of network concessions for intreconnectors, be taken by the government. We therefore propose the introduction of a provision to this effect. The Natural Gas Directive The Directive concerning the natural gas market comprises both quantitative changes, such as increased market opening and an extended application area, and qualitative changes, such as the legal separation of transmission and distribution system operators, requirements concerning the unbundling of accounts, rules governing access to transmission and distribution systems and storage facilities, as well as the of an independent regulatory authority that will give advance approval at least of the methodologies used in setting tariffs. The Directive also includes new aspects relating to public services, customer protection, security of supply and reporting. In addition to these main points, the Directive also contains an extensive and detailed body of regulations. In the findings of this report, proposals are made concerning the changes to the Swedish Natural Gas Act needed to incorporate the Directive into the Swedish legal system. The findings also make proposals for how the reporting procedures required by the Directive should be implemented. The application area of the Swedish Natural Gas Act In order for the Swedish Natural Gas Acts application area to coincide with the scope of the Directive concerning natural gas, we propose that the stipulations of the Swedish Natural Gas Act should be extended to include liquefied natural gas (LNG), biogas and gas from biomass, as well as other types of gas, provided that it is technically possible for the gases to be injected and used, as well as transported, through the natural gas system. Concession for liquefied natural gas facilities We propose the introduction of a concession requirement for and using a liquefied natural gas (LNG) facility. Concessions shall be subject to a decision by the government. A concession will only be granted if the facility is suitable from a general public viewpoint. Only persons suitable to conducting such operations will be granted a concession. A concession for an LNG facility can be supplemented with special terms and conditions needed in order to meet safety requirements and safeguard environmental, ecological, cultural and similar values. A concession will be valid for a period of 40 years. Should there be special reasons or should the applicant so request, shorter periods of validity may be granted. A concession may be withdrawn if the facility is not in use and is redundant from the aspect of security of supply. A concession may also be withdrawn in case of misconduct by the holder. When a concession ceases to be valid, its last holder shall be obliged to remove the facility and take steps to restore the site to its original state. person responsible for a facility without having a concession, although such a concession is required, may be ordered by the relevant authority to remove the facility and restore the land to its original state. In order to enhance consumer protection, we propose that the conditions governing the interruption of the transmission of natural gas to a consumer shall be regulated by the Swedish Natural Gas Act. Distribution to a consumer may only be interrupted due to the latters negligence if this negligence can be considered a significant breach of contract. Before distribution is interrupted, the consumer shall be urged to take action to rectify the situation. Where negligence involves failure to pay, the consumer shall be notified that distribution may be interrupted if payment is not made within three weeks. shall also be notified of the problem. If the consumer rectifies the problem, or if accepts responsibility for settling the debt, distribution may not be interrupted. Natural gas distribution may not be interrupted when a debt forms the object of a dispute. may it be interrupted if there is reason to believe that interruption would entail personal damage, which is not of an insignificant nature, or extensive property damage. This does not however apply in cases where the consumer has been guilty of misconduct. Responsibilities for balancing the natural gas system – system responsibility and balancing responsibility The maintenance of balance in the Swedish natural gas system shall be based on objective and non-discriminatory grounds. In order to ensure this, we propose the introduction of provisions relating to system and balancing responsibility. We also propose that the terms and conditions governing the provision of services designed to maintain balance within the system should be regulated, in order to ensure that the terms and conditions of an agreement concerning balancing responsibility shall be objective and non- discriminatory and reflect the costs for balancing the system. We propose that the government should be authorised to appoint the body to be responsible for balancing the Swedish natural gas system. In order to enable such a choice to be made, provisions will be introduced giving the body with system responsibility the authority under certain circumstances to order increased or decreased natural gas in-put and decreased natural gas off-take. We further propose that there should be an entity charged with balancing responsibility at every natural gas consumers off-take point. Responsibility for ensuring that this is the case rests with the relevant natural gas supplier. Undertakings concerning balancing responsibility shall be formalised through agreements with the body charged with system responsibility. responsibility shall be responsible for maintaining short-term balance, both within the natural gas system as a whole and within parts thereof, between natural gas in-put and off-take, as well as for the economical settlement procedures between those with balancing responsibility. Those with system responsibility shall ensure that the terms and conditions governing the services provided for the purpose of balancing the natural gas system are made accessible to the public. Procuring energy for the operation of natural gas pipelines It is proposed that the energy required for the transmission of natural gas shall be procured on transparent, non-discriminatory and market-based terms. Unbundling of natural gas transmission and distribution system operators In order to ensure access to the natural gas system on objective and non-discriminatory conditions, we propose that a legal entity conducting operations involving the transmission or distribution of natural gas, or owning a natural gas storage facility or LNG facility, shall be barred from conducting operations involving trade in natural gas. In order to further clarify the distinction between transmission operations, which are subject to concessions, and operations involving trade in natural gas, a regulation is to be introduced stating that a Board member, Managing Director or company signatory at a company holding a concession for a natural gas pipeline may not simultaneously serve as a Board member, Managing Director or company signatory at a legal entity conducting operations involving trade in natural gas. In order to ensure that transmission system operators realise the importance of acting objectively and in a non-discriminatory , we propose that the owners of natural gas pipelines shall draw up a regulatory plan clearly specifying the measures taken to counter discriminatory conduct. An annual report listing the measures taken in this respect shall be submitted to the authority selected by the government. This annual report shall be made accessible to the public. It is proposed that the provisions of the Swedish Natural Gas Act concerning accounting should be supplemented so that they clearly state that the accounts of operations involving the transmission, distribution and storage of natural gas, as well as those of operations conducted at LNG facilities, should be kept separately. Access to natural gas storage facilities and LNG facilities In order to ensure the transparency of the natural gas market on objective and non-discriminatory terms, we propose that owners of natural gas storage facilities that are subject to concessions or of LNG facilities shall be obliged, on reasonable terms, to allow both in-put and off-take of natural gas by eligible into and from these facilities. This obligation shall not apply if a facility lacks the capacity to cope with the requested in-put or if there are other special reasons. Storage tariffs and in-put tariffs for LNG shall be made accessible to the public. Exemptions for major infrastructure projects for natural gas In order to facilitate investments in major new infrastructure projects for natural gas, as well as major capacity expansion within existing infrastructure, we propose to make it possible to apply for an exemption from the provisions of the Swedish Natural Gas Act concerning unbundling, the obligation to connect pipelines and transmit natural gas, the procurement of energy to operate a natural gas pipeline and the drawing up of regulatory plans, as well as the obligation to store natural gas, the obligation to allow natural gas in-put into an LNG facility, and the provisions concerning regulated tariffs and connection fees, as well as system and balancing responsibility. Applications for exemptions will be subject to a decision by the government. A decision concerning exemption shall be reported immediately to the EC Commission, which has the authority to request the government to modify or withdraw an exemption that has already been granted. We propose that all non-household are considered eligible as of 1 2004 and all are considered eligible as of 1 2007. We propose the introduction into the Swedish Natural Gas Act of a new procedure whereby the regulatory authority shall make decisions concerning approval of the companies methodologies for setting transmission tariffs before allowing these tariffs to come into effect. Appeals against the decisions of the regulatory authority may be submitted to a general administrative court. We also propose the introduction of a similar procedure for the approval of terms and conditions relating to the provision of balancing services. In order to avoid situations in which a company fails to obtain a decision within a reasonable period of time, a time limit should be introduced for the regulatory authority. This time limit shall be three months from such time as a request for a decision is submitted to the authority. A decision to approve the terms and conditions shall be valid immediately. We also propose the introduction of a provision specifying that transmission and distribution undertakings shall, when setting their tariffs, pay special attention to the number of connected , the geographic location of the , the quantity of energy transmitted and the output subscribed to, as well as the costs for being connected to transmission networks, security of supply and pipeline pressure. For the purpose of specifying in more detail how connection tariffs should be set, we propose the introduction of a new provision in the Swedish Natural Gas Act whereby owners of natural gas pipelines shall pay special attention to where a connection is located and the output involved in the connection. We propose the introduction of rules concerning a deadline for when the regulatory authority shall have reached a decision concerning cases submitted to it. Cases involving a decision to approve the objective and non-discriminatory nature of the terms and conditions governing the transmission of natural gas shall normally be expedited within two months. The authority may extend this deadline by a further two months. If the person submitting the case consents to it, the deadline may be further extended. The same shall also apply to cases involving the storage of natural gas and the operation of LNG facilities, as well as connection fees and system and balancing responsibility. The deadline does not apply to the provisions of the Swedish Natural Gas Act regulating the level of transmission tariffs, the storage of LNG or in-put into an LNG facility, or the level of fees for the provision of balancing services. lag om ändring i ellagen (1997:857) Härigenom föreskrivs såvitt gäller ellagen (1997:857) dels att 3 kap. 6 §, 3 kap. 7 §, 4 kap. 2 §, 12 kap. 1 § och 13 kap. 5 § skall ha följande lydelse, dels att det i lagen skall införas åtta nya paragrafer, 1 kap. 8 §, 3 kap. 1 a §, 3 kap. 1 b §, 3 kap. 16 §, 8 kap. 4 b §, 8 kap 12 §, 8 kap 13 § och 12 kap. 1 a §, dels att rubriken närmast före 3 kap 1 b § skall lyda Upprättande av övervakningsplan, rubriken närmast före 4 kap. 2 § skall lyda Metoder för bestämmande av nättariffer, rubriken närmast före 8 kap. skall lyda Systemansvar och balansansvar m.m. och att 8 kap. 12 § skall lyda Angivande av elens ursprung samt att rubriken närmast före 12 kap. skall lyda Tillsyn m.m.. Med vertikalt integrerat företag avses ett företag eller en grupp av företag vars inbördes relationer definieras i artikel 3.3 i rådets förordning (EEG) nr 4064/89 av om kontroll av företagskoncentrationer1, där de berörda företagen eller den berörda gruppen företag bedriver 1 EGT C 395, 30.12.1989, s 1 (Celex 389R4064). nätverksamhet och produktion av eller handel med el. I en juridisk person som bedriver nätverksamhet får inte en styrelseledamot, verkställande direktör eller firmatecknare vara styrelseledamot, verkställande direktör eller firmatecknare i en juridisk person som bedriver produktion av eller handel med el. Upprättande av övervaknings– plan Den som bedriver nätverksamhet och som utgör en del av ett vertikalt integrerat företag vars elnät har minst 100 000 anslutningspunkter samt den som har nätkoncession för stamledning skall upprätta en övervakningsplan. Av övervakningsplanen skall det framgå vilka åtgärder som vidtagits för att säkerställa att verksamheten bedrivs på ett objektivt och icke- diskriminerande sätt gentemot övriga aktörer på elmarknaden. Den som skall upprätta en övervakningsplan enligt första stycket skall till nätmyndigheten inge en årlig rapport över de åtgärder som vidtagits för att motverka sådant diskriminerande beteende som anges i första Den rapport som avses i tredje stycket skall offentliggöras. bestämmer får meddela närmare för linje är, om det inte finns för linje är, om det inte finns särskilda skäl, skyldig att på särskilda skäl, skyldig att på sådant ärende skall fattas inom dock inte om det visas att från det att ansökan ansökan om prövning kommit in kommit in till nätmyndigheten. ytterligare tid för att avgöra ärendet får tiden förlängas med ytterligare eller, om berörd part under dennes senaste sökanden medger det, med den tid som behövs för att ärendet slutligen skall kunna avgöras. En tvist om villkoren för anslutning prövas inte om det senare än efter det att berörd part under dennes senaste för område är, om det inte finns för område är, om det inte finns särskilda skäl, skyldig att på särskilda skäl, skyldig att på sådant ärende skall fattas inom dock inte om det visas att från det att ansökan ansökan om prövning kommit in kommit in till nätmyndigheten. ytterligare tid för att avgöra ärendet får tiden förlängas med ytterligare eller, om berörd part under dennes senaste sökanden medger det, med den tid som behövs för att ärendet slutligen skall kunna avgöras. En tvist om villkoren för anslutning prövas inte om det visas att ansökan om prövning senare än efter det att berörd part under dennes senaste