Message-ID: <23050280.1075858902102.JavaMail.evans@thyme> Date: Sun, 7 Oct 2001 14:09:58 -0700 (PDT) From: peter.styles@enron.com To: j..kean@enron.com Subject: Three examples of real regulatory opportunities in CWE Cc: paul.dawson@enron.com, richard.shapiro@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: paul.dawson@enron.com, richard.shapiro@enron.com X-From: Styles, Peter X-To: Kean, Steven J. X-cc: Dawson, Paul , Shapiro, Richard X-bcc: X-Folder: \SKEAN (Non-Privileged)\Kean, Steven J.\Budget X-Origin: Kean-S X-FileName: SKEAN (Non-Privileged).pst 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.