ACTIVITY REPORT 2 13-2 14 Eurogas is the association representing the European gas wholesale, retail and distribution sectors. Founded in 1990, its members are some 45 companies and associations from 25 countries. Eurogas represents the sectors towards the EU institutions and, as such, participates in the Madrid Gas Regulatory Forum, the Gas Coordination Group, the Citizens Energy Forum and other stakeholder groups. Its members work together, analysing the impact of EU political and legislative initiatives on their business and communicating their findings and suggestions to the EU stakeholders. The association also provides statistics and forecasts on gas consumption, as well as information on energy taxation in Europe. For this, the association can draw on national data supplied by its member companies and associations. Figures from this report may be used, provided that reference is made to Eurogas as the source. © Eurogas, June 2014 – All rights reserved. President’s Message 2 Content Secretary General’s Message 4 Eurogas Timeline of Activities 6 Eurogas Policy Areas 8 The 2030 Framework Internal Energy Market REMIT Gas Distribution External Energy Policy Statistical Report 2013 Gas Advocacy 20 GasNaturally Campaign Communications Activities Eurogas Members 24 Executive Committee Secretariat Staff Organisational Structure 25 Eurogas Membership 26 1 lthough the market share of gas decreased still The fact that the GHG emissions reduction target is further in 2013, this downward trend is starting placed at the heart of the 2030 package is a positive A to level out. Shareholders and policy makers are step that Eurogas has supported through a strong also once again beginning to recognise the benefits and effective mobilisation of its members and that gas can bring to a sustai nable energy market. secretariat staff over the past year. Eurogas has advocated strongly for a technology- However, reform of the ETS is still very much neutral and competitive approach based on a 40% needed. The carbon market is now counting a greenhouse gas (GHG) emissions reduction target in massive surplus of allowances due to an over- 2030, and a strengthened Emissions Trading System allocation of free allowances to industry in a (ETS). Speaking to the European Commission, the context of economic crisis, a lack of co-ordination European Parliament, the Council, the press and with other policies (such as energy efficiency and many other opinion formers, Eurogas has explained renewable energy), and the impact of international that this would be effective in achieving a low-carbon credits. This situation has caused the collapse of energy system while avoiding the side-effects of the the carbon price, which, coupled with a low price of 2020 targets such as, high costs for consumers, coal, has led to coal-fired power stations seeing a security of electricity supply concerns and the revival new heyday. At the same time, Eurogas members of highly emitting coal-fired power stations. On the and their customers had to take their gas-fired contrary, this approach will benefit gas and renewables power stations out of service. As a result, carbon as well as promote greater energy efficiency. dioxide (CO2) emissions are rising again in some Member States and there is concern about the loss The proposal on a climate and energy framework of flexible electricity generation capacity required toward 2030, published by the Commission in January, to back up the rising market share of electricity constitutes a good basis for discussion. from variable renewables. 2 President’s Message Gas technology can be perfectly used in combination with renewables. ” Paradoxically, in the United States, the shale gas the European Commission and Member States on revolution has caused CO2 emissions to drop this matter. considerably. And yet it is a shale gas revolution that many in Europe are working to suppress, After two terms, my time as President of Eurogas is without testing it and considering its potential coming to an end. As Former President, I will remain positive impact. fully committed to Eurogas and will continue to support our association. I wish my successor the very Eurogas will also continue to demonstrate that gas best in continuing the good work dedicated to technology is up and running, and can reduce energy improving the business environment for gas and to demand and emissions not only in power generation further developing political understanding of the but also in heating and transport. And that such essential role that gas can play in a competitive, technology can be perfectly used in combination secure and clean energy system of the future. with renewables. Of course, I must mention the new Russia-Ukraine Jean-François Cirelli, crisis that has pushed security of supply concerns President further up the agenda. The gas industry is working together to address these concerns. Indeed, it is important to Eurogas member companies that they meet their customers’ needs. Diverse supply sources and routes, good interconnection of the EU energy networks, smooth cross-border sales and storage are essential elements. Eurogas will continue to contribute actively to the reflection of 3 urogas members – whether by participating in of market-distorting measures, such as price regulation committees, or meetings with European Union and support schemes for renewables. The possible E stakeholders, or through their membership alone – need for capacity remuneration mechanisms is still on have once again shown that joining forces pays off. the agenda to maintain a business case for gas-fired As the 2030 framework for energy and climate power stations and thus security of electricity supply. policies is being debated, both the need and room for This year and next will see particular focus on retail gas is becoming increasingly apparent. The internal markets, including distribution and smart grids. gas market rules, as they develop, reflect the needs Eurogas will continue to represent the interests of of all market participants in a well-functioning and both suppliers and distributors. competitive market. The longer term is addressed by considering the need In October 2013, the Eurogas Board adopted an to adapt the Gas Target Model to market realities ambitious work programme for the year ahead, which and possible measures forming a bridge to 2025 in we are on track to accomplish. Numerous policy and the wholesale and retail markets of electricity and legislative pieces will make up the 2030 framework, gas. Co-ordination between the electricity and gas such as the Emissions Trading Directive, the markets will be part of that. development of renewable energy sources, energy efficiency measures, research, development and Preparations for a campaign to demonstrate the demonstration of low-carbon energy technologies. advantages of gas in heating and cooling are well advanced. In transport, Eurogas and the Natural Gas The implementation of the internal energy market is Vehicle Association of Europe (NGVA Europe) are continuing. This not only requires the completion of the preparing a Q&A paper and joint policy messages. various network codes for gas transport and the Overall advocacy for gas is continuing via Eurogas marketing of transport capacities but also the removal support of the GasNaturally initiative. 4 Secretary General’s Message As the 2030 framework for energy and climate policies is being debated, the need for gas is becoming ” increasingly apparent. Eurogas has also continued its strong engagement in is coming to an end. He has been an outstanding the EU-Russia dialogue. While the situation in Ukraine President to Eurogas and an excellent boss to me. is a new challenge in convincing EU stakeholders He created a strong sense of community among the that supply is secure, it is also an opportunity to talk members of Eurogas and has carried their joint about gas and its multiple advantages on the way message convincingly to the EU stakeholders. Finally, to a low-carbon energy system. Eurogas has also I would like to extend my thanks again to these EU continued its efforts in convincing the Commission to stakeholders, who have solicited the views of Eurogas take action against the hostile business environment and lent an ear to our concerns. in Hungary. In all these areas Eurogas has been able to corroborate Beate Raabe, its views with own data. Apart from the annual Secretary General Statistical Report and early gas demand forecast in spring, Eurogas also issued the Long-term Outlook for Gas to 2035 in October 2013. I would like to thank the Eurogas team for their commitment and efficient way of working in gathering new information, agreeing strong views and conveying clear messages for intensive communication with Eurogas’ stakeholders. I would also like to thank Jean-François Cirelli, whose second and last term as the President of Eurogas 5 TIMELINE OF ACTIVITIES 2 13 JUNE JULY SEPTEMBER OCTOBER 21.06 Eurogas response 02.07 Eurogas response to The Eurogas 10-Point Plan 9.10 Eurogas Annual to the draft CEER - The the European Commission’s to 2030 published Conference “Gas: Partner Council of European Green Paper “A 2030 for a New Energy Era”, Energy Regulators - Work framework for climate 12.09 Eurogas Response Brussels, Belgium Programme and energy policies” to the Discussion Paper on the Clearing Obligation 9.10 Press Releases issued 02.07 Eurogas response to under EMIR - European on “The future is with gas” the European Commission’s Market Infrastructure and “ Eurogas predicts