Regulatory powers under the EU Gas Directive 2003/55/EC of 26 June 2003 are described in the Directive and a set of interpretation documents published by the EU Commission. While the Gas Directive prescribes regulated TPA ) for Transmission Systems, Distribution Systems and LNG terminals, it is a Member State’s choice as to whether a regulated or negotiated TPA is implemented for storage access. It is also up to Member States to decide how the regulator exercises its tariff approval powers – either by approving methodology or tariffs outright. The European Commission stresses that it expects the economic effects of both options to be the same.

Although the implementation and operation of regulatory provisions are at a national level, the European Commission will keep an oversight. A certain level of convergence of detailed regulatory provisions across Europe can be expected, supported by the creation of the European Regulator’s Group for Electricity and Gas (ERGEG).

All countries in the EU have a regulator. A majority of the countries in this study outside the EU also have a regulator (including Russia).

On average, about 70 people are involved in each EU-country in energy/gas regulatory activities. In non-EU countries, this number is even higher. It is reasonable to conclude that nowadays many more governmental employees are becoming involved in the gas market than in the past.

Almost all regulators are expected to increase the number of officials involved in gas regulation during the coming years. This is also the case in non-EU countries. In EU countries, gas regulators have to date issued on average some 34 regulations until. There is, however, a large spread in the number of regulations in individual countries ranging from 2 to 170. In non-EU countries the average is even higher, at more than 45. On average, in EU countries about one quarter of the regulations are regulatory decrees.

The others regulations are decisions by the regulators, like TPA refusals and tariff decisions. In non-EU countries, the percentage of regulatory decrees is on average around 45%. It is expected that in almost all EU and non-EU countries the number of regulations issued by the regulators per year will increase during the coming five years.

In most EU and non-EU countries, the regulators are financed by the state. If the regulator is not financed by the state, it is financed by the gas market through the applicable tariffs.

In almost all EU and non-EU countries, the head of the regulator’s office is appointed by government. In the majority of the EU countries, the gas regulator coordinates its activities with a ministry or governmental agency. In some cases the regulator is part of a larger institution, like a competition authority or an overall energy regulator. The remaining EU countries have an independent regulator.

All gas regulators are members of ERGEG, the European Regulators Group for Electricity and Gas, coordinated by the European Commission. Some six non-EU countries have an observer’s position in ERGEG.

The main competences of the regulators are indicated in Annex 3. Page 18 of 35 With the exception of two countries, which are not in the EU, it is generally believed that adequate energy legislation is available. In a few countries, gas legislation in particular will have to be developed further. Some more countries need a better regulated gas market than is the case now, although in a few EU countries signs of overregulation are beginning to appear according to gas companies involved.

There are no indications that in EU countries more regulation is pursued by the gas industries. In some countries improvement of the existing system is required. In some non-EU countries there is apparently a common view on the need for an extension of their gas regulation in order to create a well-organised and integrated gas market. The respondents have a general conviction that before 2010 there will be a stable legislative and regulatory framework available in their countries.