Subject: RE: Update on Germany/Austrian Activities
From: [email-masked]
To: [email-masked], [email-masked], [email-masked]
Cc: [email-masked], [email-masked]
Date: Fri, 6 Jul 2001 03:32:00 -0700 (PDT)

Public Hearing on Revised Energy Law (EnWG Novelle)
- the German Parliment voted for a open hearing in conjunction with 
deliberations over the revision to the Energy Law. We had
been pushing hard for such a hearing so as to be able to get EFET and other 
like-minded associations to voice our
concerns about the lack of real market opening in the gas and power markets. 
The hearing is now scheduled for th 24th
of Sept and I will probably speak on behalf of EFET Germany.

Possible Application of Article 86 by EU Commission to Force Greater/More 
Rapid Market Opening
- Tensions between Germany and the EU on lack of  implementation of the Gas 
Directive and German instransigence on
regulated TPA and cross-border issues continues to build. Indeed, the 
atmosphere is quite tense now and it seems likely
that the EU will no employ the "nuclear option" of Article 86 to force 
greater and more rapid market opening in member
states. (Peter can add to this)

Gas VV Negotiations Difficult: German Cartel Office Sends Highly Critical 
Letter to Associations
- The negotiations of amendments to the German Gas network agreement continue 
to move at a snail's pace.Key issues
that we have argued for (cost-based tarriffs, development of standard 
transport and storage contracts, replacement of 
point-to-point tariff model with an exit/entry system) have yet to be 
addressed -largely because the gas industry is
wholly opposed to making these part of the negotiations. The negotiating 
associations to the network agreement (so-called 
VV-Gas) have been criticized in a letter from the head of the German Cartel 
Office. He concludes that there efforts have
not produced a basis for gas competition in Germany and that if significant 
progress is not made in the next few months, 
the Cartel Office does not see how Germany can continue to defend the model 
of negotiated access and may have
to accept a regulated solution.

Negotiation Begin for Access to Baltic Cable
After many months of correspondence and insistence by Philip Davies that 
Baltic Cable provide us with terms for
TPA, the new managment of Baltic Cable has agreed to meet with us to 
negotiate access. Negotiations will begin
with Eon (now manager of Baltic) on the 11th.

OMV/Tag Finco
Some weeks ago we initiated a formal proceeding against the Austrian pipeline 
company for effective denial of access
to their long-distance pipe running to Italy. After several hours of 
hearings, the Ministry accepted Enron's complaint and 
rejected OMV's petition to withdraw the complaint. The Ministry provided 
clear indications to OMV that they would
prefer a negotiated settlement but were ready to proceed with a full-scale 
investigation if necessary. The pressure
was sufficient to bring OMV to the table and we are now in the process of 
trying to reach closure of firm capacity
through Austria and into Italy.Should we fail to conclude agreement by July 
15th, the case against OMV will
resume.

 -----Original Message-----
From:  Shapiro, Richard  
Sent: 05 July 2001 13:20
To: Styles, Peter; Dawson, Paul; Hennemeyer, Paul
Subject: Kean' s Friday call

Any updates for me to communicate tommorow on Steve's call? Please e-mail or 
call. Thanks.