Download - Introduction to the Bundesnetzagentur (BNetzA) Visit of FTS Bonn 01.03.2010 Annegret Groebel
Introduction to the Bundesnetzagentur (BNetzA)
Visit of FTSBonn 01.03.2010
Annegret GroebelInternational Relations / Postal Regulation
Bundesnetzagentur
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Brief overview
01.01.1998: Regulierungsbehörde für Telekommunikation & Post (RegTP)• regulation of two sectors: telecommunications and
postal services New responsibilities:
• electricity, gas (both Jul 2005) and railways (Jan 2006) regulation
• RegTP renamed Bundesnetzagentur (BNetzA) in July 2005
BNetzA’s task: • market intervention (deregulation) in order to• develop and promote sustainable competition
competition in these markets
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BNetzA’s mission
• Establish and secure fair competition (all sectors)
• Provide and safeguard user interests, e.g. low-priced, efficient & eco-friendly supply of energy
• Efficient and reliable network operation (power & gas)
• Encourage efficient investment in infrastructure and promote innovation (telecoms)
• Promote development of the internal market of the European Union (all sectors)
• Ensure provision of elementary telecoms and postal services throughout Germany
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The electricity market value chain
Transport and
Distribution networks SupplyGeneration/
Production Wholesale trading
Potentially competitive market segments
„Natural monopoly“►Regulation
> 1500 network operators4 electricity TSOs22 gas TSOs
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1 EnBW Transportnetz
2 E.ON Netz
3 RWE Transportnetz Strom
4 Vattenfall Europe Transmission
Source: VDN, Daten und Fakten 2005
Electricity Transmission System Operatorsin Germany
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The Federal Network Agency
Sector-specific authority tasked with ensuring effective competition in the net-bound sectors
Telecommunications and Posts (since 1998), Electricity and Gas (since 2005), and Railways (since 2006) HQ in Bonn
BNetzA employs ca. 170 staff in energy regulation, overall ca. 2600
Independent higher federal authority in the scope of business of the Ministry of Economics and Technology (BMWi)
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Organization chart (1) Headed by President and two Vice-Presidents
• nominated by government upon proposal of Advisory Council• appointed by the President of Germany
Advisory Council• members of Upper House of Parliament & Lower House of
Parliament• advise BNetzA on various issues
Ruling Chambers key regulatory decisions executed by Ruling Chambers one chairman and two vice chairs clear rules for ruling chamber proceedings
o hearingso oral proceedingso participation in proceedingso investigation rights
independent rulings Departments: Economic, Legal and Technical for all five
sectors
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Organization chart (2)
PresidentVice President Vice President
Management Office
President's Chamber (Ruling
Chamber 1)
Ruling Chambers2
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4
5
6
7
8
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Information Technology and
Security
Human Resource Accounting Dep.
Regional Offices of BNetzA
Department for International
Coordination & Postal Regulation
Department for Energy Regulation
Department for Railway Regulation
Department for Economic
Regulation Telecoms incl. numbering
Department for Legal Telecoms Regulation
Frequency Management
Technical Telecoms Regulation incl. standardisation
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Organisation chart (3) Energy regulation – Ruling chambers
BK 6
BK 7
BK 8
BK 9
Ruling Chambers
BK 4Investment Budgets, Individual Electricity Network
Charges, Pipe-to-pipe competition
Electricity Network Access
Gas Network Access
Electricity Network Charges
Gas Network Charges
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Ruling Chamber 6Access to Power Grids
Ruling Chamber 7Access to Gas Grids
Ruling Chamber 9 Gas Tariff Approval
Ruling Chamber 8Electricity Tariff
Approval
601 Economic Policy Issues
607 Gas Distribution Network Access
602 Incentive Regulation, Benchmarking
608 Electricity Transmission Grid Access, Cross Border
603 Market Watch, Monitoring Electricity/Gas
609 Gas Transmission Network Access, Cross Border
604 Unbundling & Legal
610 Use of System Charges, Electricity
605 IT based Data Processing, Renewables
611 Use of System Charges, Gas
606 Electricity Distribution Grid Access
612 Cooperation with State authorities
Department 6 Energy Regulation
Ruling Chamber 4Investment Budgets
Organization chart (4)
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Independent regulator ?
BNetzA = higher federal authority located in scope of business of Ministry of Economics & Technology
What about independence? no influence by market players no influence on daily business by Ministry
Regulator has to be impartial How can independence be guaranteed?
clear separation of responsibilities rules that clearly define the roles institutional set-up
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Independent regulator !
Transparency• consultations• oral hearings• publication of docs
Ruling chambers’ decisions• independent (consistency requirement)• no overruling by Ministry
No control at all?• Ministry can give directives, but they have to be
published• BNetzA decisions subject to legal review by independent
courts
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Accountability
Annual report on all five sectors Activities report every two years on status and
development of telecoms & energy markets Monitoring report of energy sector Report of the Monopolies Commission to be
submitted every two years to report whether there is effective competition in the telecoms & energy markets
Report to the European Commission on energy matters to be submitted annually
Principles of its administration to be published at regular intervals
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Energy Industry Act aims at a secure, low-priced, consumer-friendly, efficient, and environmentally compatible supply of electricity and gas (§ 1 (1))
Competition and security of supply are equal aims of regulation (§ 1 (2))
Electricity and gas networks have to be neutralised in order to create competition
Division of labourSectoral regulation vs. Competition law (1)
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Basic split of energy competences between the Federal level authorities:
Federal Network Agency: Network regulation under the Energy Industry Act, inter alia: approving network access charges ex-ante setting-up an incentive regulation scheme ensuring non-discriminatory network access and set conditions taking steps against abuse of market position by network operators monitoring unbundling provisions setting fines, where appropriate
Federal Cartel Office:Application of competition law in Generation/production and supply: Abuse of market power in wholesale markets, control of end-user prices, merger control
Division of labourSectoral regulation vs. Competition law (2)
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BNetzA & BKartA (1)
Regulatory body for sector regulation:• economic and technical regulation• economic regulation: ex-ante & access regulation,
ex-post control of abusive practices• technical regulation: frequency allocation, technical
standards, radio monitoring etc. Cartel office for competition policy Clear line between regulator and cartel office:
• definition of regulated services laid down in:• separate laws (e.g. Telecommunications Act, Energy
Industry Act)• legal provision for information exchange to ensure legal
security and avoid misunderstanding and double work
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BNetzA & BKartA (2)
Collaboration between regulator and cartel office:• comments by cartel office prior to publishing decisions• agreements on defining relevant markets & determining
SMP• facilitates investigating for both authorities
Applying same standards:• same threshold for dominance applied to all sectors to
ensure close link between common competition policy and sector regulation
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Split of regulatory competencies Regional competence for networks with fewer than 100.000
customers Regional competence for networks not crossing State borders
Regional Regulatory Authorities control tariffs, system responsibilities, unbundling provisions, conduct abuse proceedings for their operators
BNetzA has in addition sole responsibility for EU level contact Transfer of competencies from the States to BNetzA is possible
(currently 6 out of 16 States have indeed transferred their competencies to BNetzA, all in all BNetzA regulates 245 electricity and 220 gas networks)
Uniform regulation ensured through a joint Committee of BNetzA andthe 10 existing Regional Regulatory Authorities
Division of labourFederal vs. regional level
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Baden-Württemberg
Saarland
Rheinland-Pfalz
Hessen
Nordrhein-Westfalen
Hamburg
Brandenburg
Sachsen-Anhalt
Sachsen
Bayern
Division of labour10 Regional Regulatory Authorities
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Thank you for your attention!
Annegret Groebel Department for International Relations / Postal Regulation
Bundesnetzagentur für Elektrizität, Gas, Telekommunikation, Post und Eisenbahnen
P.O. Box 80 01, 53105 Bonn, GermanyE-Mail: [email protected]
Phone: +49-228-14-9040