The European Third Energy Package came into law on 3rd March 2011, with the aim of developing a more harmonised European internal energy market.
The Third Energy Package consists of two Directives and three Regulations.
The key aspects of the Third Energy Package are:
The Unbundling Provision: Undertakings that are active in electricity and gas transmission activities may no longer be involved in electricity generation/supply or gas production/supply, the aim of this legislation is to eliminate any potential conflict of interests.
The Three Basic Models for Unbundling: Ownership Unbundling (OU), the Independent System Operator (ISO) and the Independent Transmission Operator (ITO). For further information on each of these different models please click here.
National Grid Unbundling Certification: National Grid Electricity Transmission, National Grid Gas, National Grid Interconnectors Limited and BritNed have all been certified as TSOs and have classified as been Ownership Unbundled.
The Creation of ENTSOG & ENTSO-E: The role of ENTSOs (the European Network of Transmission System Operators for Gas or Electricity) is to facilitate and enhance cooperation between national transmission system operators (TSOs) across Europe in order to ensure the development of a pan-European transmission system in line with European Union energy goals. National Grid is a member of both ENTSOG & ENTSO-E, and provides resources to both organisations. Just recently National Grid Executive Director Nick Winser, was elected as president of ENTSO-E
The Creation of Pan-European Network Codes: The ENTSOs are tasked with drafting binding network codes. They develop these codes by engaging with national TSOs and making use of their expertise.
The process begins with a request from the European Commission (EC) to ACER (Agency for the Cooperation of Energy Regulators) to submit a Framework Guideline. The ENTSO’s then develop the related network code in line with the ACER Framework Guideline, conducting extensive public consultations throughout the development process. The code then goes through a Comitology process, which is where Member States agree on the final text. Then on the EC's approval, the network code becomes legally binding, being adopted in accordance with existing legislative processes.
Creation of Ten Year Network Development Plans: The ENTSOs are responsible for producing a Ten Year Network Development Plan (TYNDP) every two years in accordance with the third energy package obligation. The TYNDP provides a picture of European infrastructure and future developments and includes modelling of the integrated network based on a range of development scenarios.
Link to the National Grid team, responsible for developing EU Network Codes for Electricity
Link to the National Grid team, responsible for developing EU Network Codes for Gas