'The pricing risk attached to EU energy policy'
Recent events have demonstrated how the price of energy can be highly volatile, and that it is necessarily dependent on a multiplicity of factors. In some cases these are totally external to the traditional play of supply and demand. In electricity, gas and emissions markets across the European Union price now depends in part on unpredictable policy decisions, rapidly changing regulatory rules and imperfectly harmonised transmission access mechanisms.
EFET member companies are active in calling for an end to uncertainty attributable to policy inconsistencies, greater trust in the functioning of wholesale markets and regulatory regimes, which deliver clearer signals for investments. In this 2nd annual Summit for energy trading and origination managers, we shall debate how EU policy may continue to jeopardise the natural development of European energy markets and the solutions you might wish to suggest.
· What are the main factors influencing the formation of energy prices, which policymakers and regulators control or modify?
· Could better implementation and enforcement of EU internal energy market legislation bring price formation benefits and give clearer signals for future investments?
· Gas markets – will the ERGEG regional initiatives receive decisive backing from national politicians, so that existing hubs can add liquidity and new hubs be formed?
· The EU emissions trading scheme – can it be rescued and revamped post-2012?
· Renewable electricity – will instruments evidencing renewable generation become tradable across the EU from 2010? If so what impact will they have on the value of output? And what impact on overall wholesale power liquidity?
· To what extent does the European Commission proposed 3rd IEM legislative package contain the right solutions (e.g. ownership unbundling, ENTSO, ACER?
· What could be the actions aimed at reducing market uncertainty?
The Energy Trading and Origination Summit presents you an unmissable opportunity for debating these issues, using a panel and roundtable format. For ETOS 2008 we have already procured the guest attendance of high-level representatives of the European Commission, Energy Regulators and TSOs, as well as commitments from some senior trading managers to participate in our panels