EUROPEAN COMMISSION Brussels, 30.11.2016 SWD(2016) 413 final COMMISSION STAFF WORKING DOCUMENT EXECUTIVE SUMMARY OF THE EVALUATION Accompanying the document Proposal for a Directive of the European Parliament and of the Council on common rules for the internal market in electricity (recast)



Proposal for a Regulation of the European Parliament and of the Council on the electricity market (recast)



Proposal for a Regulation of the European Parliament and of the Council establishing a European Union Agency for the Cooperation of Energy Regulators (recast)



Proposal for a Regulation of the European Parliament and of the Council on risk preparedness in the electricity sector

{COM(2016) 861 final}

{SWD(2016) 410 final}

{SWD(2016) 411 final}

{SWD(2016) 412 final}



1.Executive Summary 1.1.Background and purpose of the evaluation This Evaluation supports the concomitant Impact Assessment aimed at improving the EU regulatory framework governing the internal electricity market ("Market Design Initiative"). The Evaluation analyses to what extent the existing legislation was successful in achieving its goals. In contrast, the purpose of the Impact Assessment is to identify and weigh options for a future reform of the regulatory framework. As set out in the Evaluation Roadmap, this Evaluation will focus on developments in electricity markets which have been subject to a several legislative reforms in the past 20 years. The latest reform of the regulatory framework – which is the object of this evaluation - dates back to 2009 and is commonly referred to as the 'Third Energy Package'. The package followed on a first and second set of landmark energy legislation adopted in 1996 ('First Energy Package') and 2003 ('Second Energy Package') respectively. The Third Energy Package pursued the general objective of completing the internal energy market and moving towards a competitive, secure and sustainable Energy Union. It covers in particular five main areas: unbundling energy suppliers from network operators; strengthening the independence of regulators; establishing the Agency for the Cooperation of Energy Regulators (ACER); enhancing cross-border cooperation between transmission system operators and the creation of European Networks for Transmission System Operators; open, fair retail markets and consumer protection. This Evaluation also analyses the effects of the Security of Electricity Supply Directive (SoS Directive) as adopted in 2005 to establish some first rules on security of supply in electricity, and which has in the meantime been complemented and partly superseded by the Third Energy Package of 2009 and by other legislation. 1.2.Key findings Tangible progress Overall and within the scope of the two evaluations carried out, the evaluation's findings support the view that the Third Package has positively contributed to competition and performance of the internal electricity market, delivering tangible market benefits that have translated into added net social welfare. Although only a handful of years have passed since the entry into force of the Third Energy Package in 2011, the evaluation showed that the initiative to further increase competition and to remove obstacles to cross-border competition in electricity markets has generally been effective, and that active enforcement of the legislation has led to positive results for electricity markets and consumers. The reinforced unbundling rules had a positive effect on competition and helped to limit problems of market foreclosure. Markets are in general less concentrated and more integrated than in 2009. The new rules aiming at removing barriers to cross-border trade and to enhance cooperation between transmission system operators and regulators contributed to increased liquidity of electricity markets and a significant increase in cross-border trade, resulting in more competitive wholesale markets and contributing to lower wholesale prices. As regards retail markets, the set of new consumer rights introduced by the Third Energy Package have clearly improved the position of consumer in energy markets. The new rules enabled consumers to make better use of emerging competition between different suppliers in many countries, and switching between different suppliers increased. Also, consumers have access to a single point of contact for queries and to alternative (supplier-consumer) dispute settlement services while self-generation and smart technologies started to spread in several markets. Remaining obstacles However, in other fields the success of the rules of the Third Package in developing the internal electricity market further to the benefit of customers remains limited.