CIEP Energy Paper: “CIEP Vision on the Gas Target Model”
CIEP Energy Paper: “CIEP Vision on the Gas Target Model”
CIEP sheds its light on the European discussion concerning a Gas Target Model. A discussion around a future framework for gas regulation should start with the market and its developments, i.e., the gas industry and its transaction mechanisms, which are represented in a variety of forms, from long-term contracts to spot deals. Each has its own role to play in the total make-up of the gas business, and each represents a transaction between two willing market players.
The EU policy framework provides the context for these market transactions. The objective is to achieve a well-functioning internal market. A well-functioning internal market translates into three conditions, without which the market will fail to meet this objective.
These are:
• Ample, secure and competitive supply of gas (this is without doubt the main condition);
• Abundant infrastructure, on the basis of market-led investments; and
• A wide spectrum of different commodity transactions, mutually agreed upon by market participants.
To read the full paper, click here.