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EUI Working paper RSCAS 2009/37; The Clingendael International Energy Programme (CIEP), the Loyola de Palacio Chair on EU Energy Policy of the Robert Schuman Centre of Advanced Studies (European University Institute), the Fondazione Eni Enrico Mattei (FEEM) and Wilton Park Conferences (WPC) organize a four-tier program for discussing the potential for a smart EU Energy Policy. The Florence workshop is then the first one in a series of four where academics will discuss the various interactions between the three objectives of the EU Energy Policy with stakeholders from governments, regulators and the industry. This workshop adressed the internal energy market design and its consequences for energy supply security and climate change policies. The workshop gathered over on day and a half 42 experts to discuss current problems and possible solutions for a smart EU Energy Policy.

The Clingendael International Energy Programme (CIEP), the Loyola de Palacio Chair on EU Energy Policy of the Robert Schuman Centre of Advanced Studies (European University Institute), the Fondazione Eni Enrico Mattei (FEEM) and Wilton Park Conferences (WPC) organize a four-tier program for discussing the potential for a smart EU Energy Policy. The Florence workshop is then the first one in a series of four where academics will discuss the various interactions between the three objectives of the EU Energy Policy with stakeholders from governments, regulators and the industry. This workshop addressed the internal energy market design and its consequences for energy supply security and climate change policies. The workshop gathered over one day and a half 42 experts to discuss current problems and possible solutions for a smart EU Energy Policy.

The question this paper addresses is: what is the evidence for the superiority of the ownership unbundled transmission models (i.e. UK or Nord Pool hybrid) over other models? We assess the theoretical costs and benefits of ownership unbundling and judge these to be generally positive, though these may be potentially offset by the actual reorganisation costs of the ownership unbundling process. Next, we assess the empirical evidence. This is in two forms â econometric evidence from samples of countries and case studies of reforms in particular jurisdictions. The econometric evidence is weak due to problems with simultaneity of reform steps and a lack of studies, but the case study evidence is compelling. We conclude with a discussion of of the issues faced by countries considering implementing ownership unbundling. We conclude that evidence seems to be that ownership unbundling of transmission is a key part of energy market reform in the most successful reform jurisdictions.

The Croatian government plans to reorganise, liberalise and privatise the energy sector. This reorganisation is expected to emphasise compatibility with the European Union. The beginning of the reform of the gas sector started by accepting the Law on Gas Market in the Croatia Parliament in July 2001. The Law creates conditions for market functioning and for joining the European gas market. Today, the organisation of the Croatian gas activity consists of INA, PLINACRO and distribution companies. INA is a vertically integrated oil and gas company operating in oil and gas exploration and production, refining and marketing of oil products. For the time being it is owned by the Republic of Croatia but privatisation plans are under way. Natural gas pipelines in Croatia are run by Plinacro Ltd., a 100 per cent state-owned company. The organisation structure of PLINACRO will allow for gas liberalisation in Croatia. In the Republic of Croatia there are 42 distribution companies which were organised by Communal Law and gas distribution was defined as a communal activity. The Gas Market Law defines gas supply, which includes gas import, transmission and distribution. The Law defines eligible customers, reciprocity, gas transit and supervision. The Law also defines Conditions for TPA to Gas Transport Network, the choice is Negotiated TPA, and Gas Transport is defined as Public Service Obligation while Gas Distribution becomes Market Service. The Law on Regulation of Energy Activities introduced the Energy Regulatory Council which is an independent regulatory authority, established by Croatian Parliament. The Croatian Government has accepted two sub-laws, which design the tariff system. Accepted are Tariff System for Gas Supply for Tariff Customers and the Tariff System for Gas Transmission for gas suppliers and Eligible Customers. The third sub law is being prepared and it will design the Tariff System for Gas Distribution.