The Energy Regulation and Markets Review - Stikeman Elliott

Austria
fully separated from the VIU. The ISO may not hold any interest in a supply or generation
undertaking. Furthermore, the ISO must execute the network development plan, which
has to be submitted to E-Control. Apart from that, the ISO model regulates that the
network owning company has to disclose all agreements and contracts concluded with
the ISO to E-Control. The ITO model preserves integrated supply and transmission
companies, but obliges the companies to comply with additional rules to ensure that the
two activities are operated independently (e.g., separation of managing functions, coolingoff
periods, establishment of a specific supervisory body, review of network development
and investment decisions). Within the ITO model the TSO must own and operate the
network. E-Control has extensive supervisory rights with regard to the ITO and VIU. In
March 2012 the Verbund Austrian Power Grid, operating the Austrian transmission grid
in large part and being the only control area manager, was granted its certificate as ITO by
E-Control.
The new unbundling requirements had to be fulfilled by 3 March 2012. In the
case of non-compliance with the unbundling requirements, network operators can be
fined by the administrative penal authority.
Gas
The GWG 2011 established with a view to the transposition of EU Directive on the internal
market with natural gas a newly designed unbundling regime for the operation of natural
gas pipelines. In general, by March 2012 the TSO has to comply with one of the following
models provided for by that Directive: OU, ISO or ITO (ITO+). There are less stringent
unbundling obligations for DSO and storage operators. They must only be independent in
terms of legal form, organisation and power of decision (legal and functional unbundling).
ii Transmission/transportation and distribution access
With a view to the electricity sector, DSOs have the obligation to publish general terms
and conditions and to conclude, under these terms and conditions, agreements with end
users and producers, providing for their connection to the grid (in line with the general
obligation to connect); in line with this obligation regarding the DSO, grid users have
the right and also the obligation to connect their facility to the DSO operating on their
respective service territory. The general terms and conditions for net access must not
be discriminatory, include abusive practices or unjustified restrictions, or endanger the
security of supply or quality of service. They must also be adapted within a control area
between the grid operators.
The respective Electricity Acts of the federal states lay down conditions under
which a DSO may refuse a grid connection. These exceptions to the general obligation
specifically include cases where the connection to the grid would not be economical in
relation to the interests of all system users. Furthermore, grid access may be denied if the
grid user requires or wants to feed in electricity at a voltage higher than 110kV. In this
case it is the TSO who has the obligation to grant access to the transmission grid.
The electricity laws of the federal states provide for area monopolies for electricity
distribution grids. Therefore, a concession for such type of grid is only granted as long as
no other distribution grid exists. The implementing laws of the states have to foresee that
the distribution grid operator has the exclusive right to connect all end users and producers
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