FYI

 -----Original Message-----
From: 	Dawson, Paul  
Sent:	Monday, October 08, 2001 3:22 AM
To:	Shapiro, Richard
Subject:	RE: Three examples of real regulatory opportunities in CWE

FYI - we did not intervene in the GFU because of commercial sensitivities about damaging our relationships with them.  Peter has painted this to me - and I therefore assume others - as an area where Doug has let the ball drop.  This is highly misleading since Doug was very much on top of the issues, but resisted action because of the commercial drivers.

Paul



 -----Original Message-----
From: 	Styles, Peter  
Sent:	07 October 2001 22:10
To:	Kean, Steven J.
Cc:	Dawson, Paul; Shapiro, Richard
Subject:	Three examples of real regulatory opportunities in CWE

I am just about to leave for Dulles airport, Steve, but let me give you a few headline notes, further to our discussion on Wednesday afternoon.

VPP capacity auctions France
What they are: Virtual gencap. auctioned from 9/01 by EdF onward to market entrants, one product mimicking baseload, another peaking capacity; 6000 MW for five years extendable (= c. 10% of French peak demand or c. 7% of capacity used in France inc. for exports.)
How we got them: I wrote submission with Brattle and Linklaters at interim stage of EC investigation into EdF's takeover of EnBW in Germany; presented idea at Hearing; persuaded E.On and RWE to support the remedy (though initially they were sceptical/ didn't understand.)

Break-up of GFU and intro. of TPA regime to Norwegian North Sea
What this means: No more cartellised selling of Norwegian gas at continental terminals; access for new entrants to supplies either at those terminals or at platforms when TPA regime sorted out with Norwegian gov.
How we got this: EC investigation into GFU with co-op of EFTA Surveillance Authority; cartel is suspended but further remedies against participants still pending; we have not intervened pro-actively; still a chance to do so or use threat of doing so as commercial lever; also a great opportunity to tell the Norwegian gov. how to organise their TPA regime (also no intervention so far).

Investigation of German long distance gas transmission TPA terms
What's happening: Pressure by EC on Ruhrgas, Thyssengas and BEB to yield better terms. Enquiry stemming from original '94 Marathon complaint (also root of GFU investigation); revived this year.
What have we done: Very little (though EC aware of parallel EFET effort under German NTPA discussions), except answer questionnaires sent earlier this year about EU-wide terms of access and a more recent questionnaire (at least under EFET umbrella) about concessions offered by Thyssengas. Now stepping up effort using external counsel in Brussels and engaging German country manager.