Message-ID: <10148910.1075848203439.JavaMail.evans@thyme>
Date: Thu, 22 Mar 2001 06:21:00 -0800 (PST)
From: mark.schroeder@enron.com
To: john.sherriff@enron.com, michael.brown@enron.com, mark.frevert@enron.com, 
	steven.kean@enron.com
Subject: Summary of the Commission's acceleration package!
Cc: peter.styles@enron.com, nailia.dindarova@enron.com
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Depending upon your appetite for detail, in varying levels of detail, Peter 
and Nailia in our Brussels office have prepared the summaries below regarding 
the so-called "acceleration directives" of the European Commission, which are 
to be one of the subjects of the Stockholm Summit this week.  Given that 
these are significant milestones/events for our business, I wanted to pass 
this along should you be interested in more of the details.  mcs
---------------------- Forwarded by Mark Schroeder/LON/ECT on 22/03/2001 
14:23 ---------------------------


Nailia Dindarova
22/03/2001 13:42
To: Govt Affairs
cc: Gregor Baumerich/LON/ECT@ECT, David Gallagher/LON/ECT@ECT, Paul 
Mead/LON/ECT@ECT, Ross Sankey/LON/ECT@ECT, Eric Shaw/LON/ECT@ECT, Eva 
Hoeffelman/LON/ECT@ECT, Fiona Grant/LON/ECT@ECT, Andrew Morrison/LON/ECT@ECT, 
Julie Green/LON/ECT@ECT, Amaia.Betelu@citigatepa.com, 
laura.currie@edelman.com 

Subject: Summary of the Commission's acceleration package!

Please see attached our summaries of the legislative package adopted by the 
European Commission on 13/03/01, which includes a proposal for a new 
Directive (so-called 'Acceleration Directive' , amending the existing 
Directives on internal market in electricity and gas) and a Regulation on 
cross-border trade in electricity. 

We have previously circulated summaries of the drafts of these two documents 
(as of February when the proposals were still in the phase of inter-service 
consulation within the Commission) which I am reattaching here for your 
convenience (Annexes 2 and 4).

 There have been some changes made to the text of the Directive since the 
February draft version and we have summarised most important of those in the 
new documents attached (Annex 1). Most of these changes we regard as 
positive. 

In particular:
the stipulation of ancillary services' definition to include flexible 
mechanisms such as load balancing and blending along with the storage 
services in gas and the requirement that the main commercial conditions for 
those are published has been requested by us during the meetings with the DG 
TREN officials in early March
we insisted on the obligation for an independent regulator to ensure 
cost-reflectivity of the transmission tariffs, which is now included in an 
expanded list of the regulator's responsibilities
our message that legal unbundling for is essential for distribution as well 
as for transmission has been channeled through a number of position papers 
which we have signed up to through various associations.  


Also, the Regulation on cross-border trade in electricity has been amended in 
a manner which enhances the clarity of drafting (see Annex 3). In particular, 
occasional references to 'individual transactions' which we thought were very 
unfortunate in the February draft (given that any transaction-related tariffs 
were forbidden) have been eliminated in the final text.  Also, a new Annex to 
the Regulation has been added. It basically endorses Florence conclusions on 
congestion management and allocation of capacity and is very good stuff 
overall.

Enron Europe's press statement endorsing the Commission's legislative 
initiative overall and highlighting key provisions of the adopted proposal 
was issued on 21/03/01. 

I will be presenting this proposal in more detail during our Government 
Affairs off-site next week and hope we can have a useful discussion as to the 
implications this legislation will have on our efforts in individual Member 
States.

Eric, Peter has also suggested that we may come to make a presentation to 
your group if you think this would be helpful.


Annex 1.





Annex 2.






Annex 3.






Annex 4