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#Energy & Sustainability

A target model for the European gas market

  • November 7, 2012
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Document(s)
POLICY PAPER | A target model for the European gas market
The European gas market is facing tremendous long-term challenges that are likely to subsist even after the implementation of the 3rd package. This CERRE Energy & Climate policy paper provides prospective recommendations on these issues.

Based on the conclusions of a high level seminar held in Brussels on 13 September 2012, which has benefited from the participation of a wide array of key stakeholders from the European Commission, national government, regulators and industry, as well as academic experts in the field. Its main conclusions are that :

  • Regulatory stability is paramount to garantying the subsistance of long-term contracts, necessary to the continued availability of infrastructure financing;
  • The European regulatory environment will inevitably lead to a greater role for the centralised “planning approach” to new investments, to the detriment of a more market-oriented approach;
  • Many issues still need to be resolved between the EU and its main suppliers (e.g. Russia). A carefully balanced mix of policies will be required to this end (diplomacy, competition policy, etc.).
Author(s)
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Guido Cervigni
Guido Cervigni
Senior Advisor
Guido is an economist, former regulator, market designer and company strategist. He has been a consultant for more than ten years, holding director level positions in leading international consulting firms.
Guido has advised regulators, system operators, exchanges and businesses across Europe on a wide range of regulatory issues in energy markets, including market design, price regulation, contracts and asset evaluation, cost-benefit analyses and unbundling. He has also advised private clients on competition and commercial disputes including analysis of state aids, assessing allegations of competitive abusive behaviors and estimating antitrust damages.
As a member of System Operation Expert Group advising the European Regulators’ Group for Electricity and Gas (ERGEG), Guido was involved in the development of the EU framework guidelines on System Operations; he was also a member of ACER’s expert group on capacity remuneration systems.
Guido is research director at GREEN, the Centre for Geography, Resources, Environment, Energy and Networks at Bocconi University, Milan and gas advisor of the Florence School of Regulation.
Guido received a PhD in economics from Bocconi University, Milan.
Guido is an economist, former regulator, market designer and company strategist. He has been a consultant for more than ten years, holding director level positions in leading international consulting firms.
Guido has advised regulators, system operators, exchanges and businesses across Europe on a wide range of regulatory issues in energy markets, including market design, price regulation, contracts and asset evaluation, cost-benefit analyses and unbundling. He has also advised private clients on competition and commercial disputes including analysis of state aids, assessing allegations of competitive abusive behaviors and estimating antitrust damages.
As a member of System Operation Expert Group advising the European Regulators’ Group for Electricity and Gas (ERGEG), Guido was involved in the development of the EU framework guidelines on System Operations; he was also a member of ACER’s expert group on capacity remuneration systems.
Guido is research director at GREEN, the Centre for Geography, Resources, Environment, Energy and Networks at Bocconi University, Milan and gas advisor of the Florence School of Regulation.
Guido received a PhD in economics from Bocconi University, Milan.

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