Progress made

Project Team for Development of SEE CAO

Aleksandar Mijuskovic, Prenos

Chairman Project Team Steering Committee

15th Athens Forum, November 25th-26th, 2009

Content

PT SC SEE CAO Meetings

II

Main developments

III Conclusions

PT SC SEE CAO Meetings

1st PT SC CAO Meeting, Athens, May. 11th 2009

2nd PT SC CAO Meeting, Athens, June. 9th 2009

3rd PT SC CAO Meeting, Vienna, Sep. 17th - 18th 2009

4th PT SC CAO Meeting, Brussels, Oct. 28th 2009

Main developments

Political Support
Financing of the Project Team
Structure of the Project Team
Setting up Project Company
ToR

Main developments - Political Support

Conclusions of the Ministerial Council

Conclusions of the Athens Forum
Memorandum of Understanding
Letter of EU Commissioner Piebalgs

Main developments - Financing of the PT

70% of the overall project costs will be covered by

International Financial Institutions IFIs

30% of the project budget shall be financed by TSOs

based on equal contributions

Main developments The structure of the PT

The Project Company shall be set up for the duration

of one year

There shall be 4 experts (one Legal Expert, one

Economic Expert, 2 Grid Experts) and a Project Team
Manager leading the team and reporting to the
Steering Committee.

PT members shall be seconded by TSOs/ISOs from

the 8th region

Nomination for Project Team Members Letter

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Main developments Project Company

The originally planned approach of PRENOS acting as

beneficiary for the Project Team funds (budget) can
not be followed (difficulties with splitting income in
the balance sheet/regulated asset base)

Alternatively a Project Company ( LIMITED LIABILITY

COMPANY ) shall be set up

PRENOS offered to prepare the setting up

Legal framework for establishment of Project
Company

Main developments ToR

On 28 October 2009 the SEE CAO Project Team

Steering Committee agreed on the final version of the
ToR for the PT SEE CAO

After the agreement to go Rules of Association will

have to be finished

Conclusions

Setting up a SEE CAO is following the legal

requirements of the Energy Community Treaty in the
most efficient way

SPECIAL BENEFITS FOR SEE:

high number of borders and different allocation
mechanisms aim: implementing procedures that are
in line with the EU
integration of markets - one single market is
considered as the ultimate goal

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Conclusions

Establishment of a SEE CAO depends on the number

of the participating TSOs/ISOs and the transmission
capacities offered at their borders

Participation of all TSOs would make the project more

efficient

The SEE CAO remains open to all TSOs in the Region

Start with an NTC approach in the first phase and
move to flow based allocations in a second step

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Conclusions
Message:
all the conditions were met and that PT can start work

Governments and ministries play a key role

Clear political signal on the way forward from the
upcoming Ministerial Council (18 Dec 2009)

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