The next few weeks and carrying through July are likely to result in some important regulations for the energy industry being shaped, although we are unlikely to see the final versions emerge until the autumn.
The much-discussed topic of what is a power and gas forward that must be physically delivered rumbles on. The European Commission is due to issue its delegated acts on this by the end of September, but meetings are taking place with country representatives and others on a committee about the definition of physical forwards. According to notes on the commission website, representatives on the committee were keen to get energy regulators’ views on a drafted definition of physical forwards. Energy regulators have already made known their dissatisfaction with ESMA’s advice on the definition and warned of the consequences for liquidity. The commission’s committee discussing the physical forwards issue met in May too, but notes have yet to appear for that session.
The political negotiations for the benchmark regulation also kicked off this week, on 2 June. The first meeting generally involved each party – EU parliament, council, commission – outlining their positions and thinking behind them. The second meeting will take place on 22 June, with a third slated to take place in July under a new presidency. It is autumn before a final agreement is expected to emerge.