ENERGY REGULATION, A BRIDGE TO 2025 CONCLUSIONS PAPER: RECOMMENDATION OF THE AGENCY ON THE REGULATORY RESPONSE TO THE FUTURE CHALLENGES EMERGING FROM DEVELOPMENTS IN THE INTERNAL ENERGY MARKET

Liquid, integrated electricity and gas markets, with a higher penetration of renewables and the consequent higher requirements for flexible response, as well a more active participation of smaller consumers are the trends foreseen for the next decade in the ACER Conclusions Paper "Energy Regulation: A Bridge to 2025".

The regulators' Bridge to 2025 recommendations are based on a holistic analysis of Europe's energy sector and are particularly timely as the new Commission sets its EU energy priorities. The "Bridge to 2025" Conclusions Paper, which is the result of extensive public consultation, identifies the trends foreseen in the ten-year period to 2025 and recommends a set of actions for regulators, Member States, the European Commission and energy actors (including consumers).

This document contains European energy regulators' considered conclusions on the regulatory challenges we expect will emerge over the coming decade from the development of the Internal Energy Market (IEM). It is based on a pre-consultation document, issued on 6 November 20132, and the full consultation document, issued on 29 April 20143, to which 141 responses from stakeholders were received. In addition, workshops were held on 6 November 2013, 29 April 2014, and 5 June 2014, and a consumer conference was held on 18 June 2014. Throughout this process, the Council of European Energy Regulators (CEER) has collaborated closely with the Agency for the Cooperation of Energy Regulators (the Agency). The conclusions presented in the present document take full account of the responses received.

bTable of Contents/b

Introduction

1 Electricity

2 Gas

3 Consumers and Retail Markets

4 Distribution System Operators

5 Governance