Unbundling gas:

The European Commission’s proposals for the third package of EU legislation governing the internal markets in power and gas.

With dramatic new proposals for opening up EU gas markets on the table, Tim Madden and Nick White explore the nature and potential impact of the latest round of European energy liberalisation battle.

In September 2007 The European Commission published proposals for its third package of liberalisation measures in an attempt to complete the work left unfinished by its earlier legislation, most notably the EU Gas Directive of 1998 and the so-called Second Energy Directive of 2003, and to bring effective competition to Europe’s gas market. The key proposal, and the most controversial, covers unbundling of energy transportation and supply businesses. This is based on the premise that vertically-integrated former monopolies have an inherent tendency to impede competition in energy supply, and therefore, in order for effective competition to emerge, vertically-integrated energy businesses must be broken up, or “unbundled”, to use the regulatory catchphrase. Although the unbundling proposals have attracted most attention, some of the other proposals also promise significant change, in particular proposals on security of supply, which could lead to a requirement for strategic gas storage stocks, or obligations for Member States to co-operate (i.e. lend each other gas) in the case of a gas supply emergency, and the proposal for a cross-border regulatory authority with binding decision-making powers.

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	STORY
	TRAINING
	PRICES
	MPHASIS!

Hello and welcome to the November issue of MZINE, our free monthly e-newsletter.

This month we are taking a look at the European Commissions proposals to unbundle gas in Europe see main STORY. At PRICES we take a look at the Gas and Power Forward Curve, whilst at MPHASIS Derek takes a look at how the EC plan to carry out their proposals?!

Our public course dates for the end of 2007 have now been updated and can be found at TRAINING.
If you wish to attend any of these courses please book early as they are filling up fast!

****SPECIAL NOTICE****
European Gas Markets Liberalisation - a two day seminar

The EU Gas Market Liberalisation course provides a review of gas markets across Europe, examining the practical extent of liberalisation, and the challenges and changes facing these markets. In particular the course will review the likely impact of the Commission’s new proposals.

More information at training or
http://www.mjmenergy.com/publictraining/enter.html?target=d5.html
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Please feel free to contact me about this newsletter and let me have your thoughts, what you like and don't like, I am open to your suggestions.

And if you have enjoyed reading this newsletter and think you know someone who might also enjoy it then feel free to forward it on.

Kind regards.

Paul Cassar
Editor

TRAINING

All of our training courses can now earn, participating solicitors, CPD points from the law society. Attendance at any of our events may also contribute to meeting accountancy CPD requirements under the terms of the ICAEW’s CPD policy. Please visit www.icaew.co.uk/cpd for the ICAEW's CPD policy details.

Any of our public courses can be held at your location, for your company, or they can be tailor made to your requirements. If you want to find out more contact our Training Manager Nick White +44(0) 1235 211161 and get ahead of the rest.

Over the next few months the following one-day events are being held in London and the two day event in Oxford UK.

More information about these courses can be found by clicking on the course title below or you can visit our new look public courses training site at http://www.mjmenergy.com/publictraining/enter.html. Alternatively you can contact me by email or phone +44 (0) 1235 553917.

If you wish to attend any of these courses please book early as they are filling up fast!

20th November UK Electricity Markets London

The UK electricity market has been through dramatic change over recent years with full market liberalisation in 1999, the New Electricity Trading Arrangements in 2001, price crashes, consolidation and warnings over plant margin in 2001 to 2003, and rebounding prices in 2004. 2005 has seen the implementation of BETTA – the creation of an integrated Great Britain trading and transmission system, as well as the impact of the emissions trading, record prices, and rumours of planned investments in new nuclear power. The UK electricity market introduction one-day seminar provides an up-to-date overview of all the key factors and trends in this fast-moving market.

http://www.mjmenergy.com/publictraining/enter.html?target=d9.html

21st November UK Gas Markets London

Gas markets throughout Europe are undergoing significant changes as liberalisation and competition emerge. The UK has the most liberalised gas market in the world, and has seen almost continual change and development from 1990 to the present day, with further changes expected due to ongoing market evolution and the forecast UK gas gap.
MJMEnergy's UK gas market seminar provides an informative one-day introduction covering all the key areas of this complex, fast-moving market.
http://www.mjmenergy.com/publictraining/enter.html?target=d1.html

22nd November Network Code London
Understanding gas transportation in Britain.

For more than a decade, the Network Code has been the cornerstone of the successful competitive gas market in Britain , and has become a model for the creation of third party access regimes in many other liberalising markets. The sale of four distribution networks by NationalGridTransco in 2005 has transformed the contractual structure of the industry with the creation of the Uniform Network Code and short-form Codes for each transporter. The Network Code course provides a clear overview of the new UNC regime, and explains the principles underlying gas transportation in Britain .

The Network Code course is an essential introduction to the contractual framework of the UK gas market, and enables delegates to understand the concepts and practicalities of gas market operations in Britain .

http://www.mjmenergy.com/publictraining/enter.html?target=d2.html

3rd & 4th December EU Gas Markets Liberalisation Oxford

The EU Gas Market Liberalisation two-day seminar is an ideal overview of the current realities, and future possibilities, of gas in Europe .

Nine years after the launch of their highly ambitious plan for liberalisation of Europe’s gas markets, the EU Commission has now proposed its third legislative package, with strong further measures designed to boost liberalisation and security of supply, which will change the way both EU and external companies operate in the European gas markets.

Key proposals of the third legislative package include a recommendation for ownership unbundling of supply and transmission companies, a cross-border regulatory agency with binding powers over national regulators, and proposals to require countries to co-operate on security of supply issues. The EU Gas Market Liberalisation course provides a review of gas markets across Europe, examining the practical extent of liberalisation, and the challenges and changes facing these markets. In particular the course will review the likely impact of the Commission’s new proposals.

http://www.mjmenergy.com/publictraining/enter.html?target=d5.html

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PRICES
Forward Curves

Price information supplied and used with permission from

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MPHASIS!
for the lighter side of life!

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MJMENERGY LTD have provided all the information in this newsletter free of charge to anyone who wishes to read it. We cannot be held responsible for any inaccuracies although all information is believed to be correct at time of publication. Whilst articles published in this newsletter often carry a particular point of view, publication of them does not imply that we necessarily agree with them. Anyone wishing to contact the editorial team with regards to any of the above articles should email: editor@mjmenergy.com, or phone +44 (0) 1235 553917