File #2536: "2018_Book_OwnershipUnbundlingAndRelatedM.pdf"
Text
1|Contents|7
1|List of Abbreviations|12
1|Chapter 1: Introduction|14
2|1.1 Private Restraints on Competition and Energy Transmission as a Natural Monopoly|16
2|1.2 Anti-competitive Practices by Vertically Integrated Energy Undertakings|17
2|1.3 Unbundling Measures in Context: Behavioral and Structural Regulatory Approaches|19
2|1.4 Unbundling as a Cross-Sectoral and Global Policy Approach|22
2|1.5 The Focus of Previous Research|26
2|1.6 The Subject and Relevance of This Book|30
2|1.7 The Course of This Book|32
1|Chapter 2: The Unbundling and Unbundling-Related Measures in the EU Energy Sector|34
2|2.1 The First and Second Energy Packages|34
2|2.2 Draft Directives Proposed by the European Commission|36
2|2.3 The Third Energy Package|39
3|2.3.1 Unbundling Requirements|39
4|2.3.1.1 The Three Unbundling Models|39
5|2.3.1.1.1 Ownership Unbundling|40
5|2.3.1.1.2 Independent System Operator|43
5|2.3.1.1.3 Independent Transmission Operator|44
4|2.3.1.2 Choice Between Unbundling Models|47
4|2.3.1.3 Unbundling Requirements for State-Owned Entities|49
4|2.3.1.4 Extraterritorial Application of the Ownership Unbundling Requirements|51
4|2.3.1.5 Third Country Companies and Ownership Unbundling Requirements|55
3|2.3.2 Certification|59
4|2.3.2.1 General Certification Procedure|59
4|2.3.2.2 The Certification Procedure in Relation to Third Countries|60
4|2.3.2.3 Certification Practice in Relation to Third Countries|63
3|2.3.3 Exemptions from Unbundling|67
4|2.3.3.1 General Exemption Procedure|67
4|2.3.3.2 Exemption Decisions and Third Countries|71
2|2.4 Ownership Unbundling and General EU Competition Law|73
1|Chapter 3: Ownership Unbundling and National Constitutional Law and EU Law: A Brief Summary of the Relevant Legal Issues|77
2|3.1 Introduction|77
2|3.2 National Constitutional Law|78
2|3.3 EU Law|81
2|3.4 The Essent Case|87
1|Chapter 4: International Economic Law as a Possible Limit to the Implementation of Unbundling and Unbundling-Related Measures:...|94
2|4.1 Introduction|94
2|4.2 Energy Services Within the Meaning of the GATS|97
2|4.3 Are Energy Services `Services Supplied in the Exercise of Governmental Authority´?|102
2|4.4 Commitments on Energy Services Within the GATS Framework|104
2|4.5 Article XVI GATS (Market Access)|112
3|4.5.1 Quantitative Limitations|115
3|4.5.2 Limitations on Forms of Legal Entity|123
3|4.5.3 Limitations on Foreign Capital Participation|127
3|4.5.4 PTAs Addressing the Relationship Between Ownership Unbundling and Market Access Obligations|129
2|4.6 Article XVII GATS (National Treatment)|131
3|4.6.1 Likeness Analysis|133
4|4.6.1.1 Relationship Between Likeness of Services and Likeness of Service Suppliers|133
4|4.6.1.2 Interpretation of Likeness: GATS Jurisprudence|135
4|4.6.1.3 Likeness of Service Suppliers in the Context of the TEP|137
4|4.6.1.4 Likeness of Services in the Context of the TEP|140
3|4.6.2 No Less Favorable Treatment|141
4|4.6.2.1 Certification Procedure in Relation to Third Countries|141
4|4.6.2.2 Individual Ownership Unbundling Exemption Decisions|143
4|4.6.2.3 The Ownership Unbundling Exemption Regime|151
4|4.6.2.4 Special Ownership Unbundling Requirements for Public Companies|156
2|4.7 Article II GATS (Most-Favored-Nation Treatment)|161
3|4.7.1 Likeness of Services or Service Suppliers|163
3|4.7.2 No Less Favorable Treatment|164
4|4.7.2.1 Individual Ownership Unbundling Exemption Decisions|164
4|4.7.2.2 Variety of Unbundling Models (OU, ISO and ITO)|166
4|4.7.2.3 The Certification Procedure in Relation to Third Countries|169
2|4.8 Article VI GATS (Domestic Regulation)|174
3|4.8.1 Article VI:1 GATS: Reasonable, Objective and Impartial Administration|174
4|4.8.1.1 Exemptions from Ownership Unbundling: Interpretation of the Notion of `Interconnector´|177
4|4.8.1.2 Application of Unbundling Rules to Offshore Sections of Gas Import Pipelines|181
3|4.8.2 Article VI:4/5 GATS: Substantive Disciplines on Domestic Regulation|186
2|4.9 Article XIV (General Exceptions)|195
3|4.9.1 Public Interest Grounds and the Unbundling Regime Under the TEP|196
3|4.9.2 Unbundling and Unbundling-Related Measures and the Security of Energy Supply|198
2|4.10 Article XIVbis (Security Exceptions)|205
2|4.11 Conclusions|209
1|Chapter 5: International Economic Law as a Possible Limit to the Implementation of Unbundling and Unbundling-Related Measures:...|213
2|5.1 Introduction|213
2|5.2 The Framework for Investor-State Claims|217
2|5.3 Admission Rights|219
2|5.4 National Treatment Obligation|221
2|5.5 MFN Treatment Obligation|225
2|5.6 Protection from Direct or Indirect Expropriation|229
3|5.6.1 Introduction|229
3|5.6.2 Compulsory Sale of an Investment: Taking Stock|231
3|5.6.3 Ownership Unbundling Measures as a Compulsory Sale of Investments|239
3|5.6.4 Legality of Expropriations|248
2|5.7 The Fair and Equitable Treatment Standard|253
3|5.7.1 Introduction|253
3|5.7.2 Legitimate Expectations and the Stability of the Legal Framework|254
4|5.7.2.1 An Obligation Not to Modify the Regulatory Framework?|255
4|5.7.2.2 Possible Exceptions to the General Rule|263
3|5.7.3 Unreasonable and Disproportionate Changes to the Legal Framework|267
4|5.7.3.1 Proportionality as an Element of FET|267
4|5.7.3.2 Proportionality and Ownership Unbundling Measures|270
2|5.8 Conclusions|280
1|Chapter 6: International Economic Law as a Possible Vehicle for the Implementation of Unbundling Measures|283
2|6.1 Introduction|283
2|6.2 The Development of International Competition Law|287
2|6.3 Existing Competition Law Provisions in the WTO Agreements|291
3|6.3.1 Article VIII GATS|291
3|6.3.2 Article IX GATS|298
3|6.3.3 Article XVII GATT|298
2|6.4 A Reference Paper for Energy Services Within the WTO Framework|302
3|6.4.1 Experience in the Telecommunications Sector|303
4|6.4.1.1 The Annex on Telecommunications|303
4|6.4.1.2 The Reference Paper on Basic Telecommunications Services|306
3|6.4.2 Experience in the Tourism Sector|313
3|6.4.3 Experience from Bilateral and Regional Agreements with Energy-Specific Provisions|316
3|6.4.4 The Way Forward: Developing a Reference Paper for Energy Services|320
4|6.4.4.1 General Observations|320
4|6.4.4.2 A Reference Paper on Energy Services and Unbundling Requirements|321
2|6.5 Conclusions|325
1|Chapter 7: Final Conclusions: Unbundling as a Competition Instrument in the Light of International Trade and Investment Law|326
2|7.1 The First Direct Legal Challenge to Unbundling Is Based on International Economic Law|326
2|7.2 The EU and Its Member States Are Free to Impose OU, Subject to Conditions|327
2|7.3 EU Member States Cannot Be Forced to Privatize Their TSOs/Commercial Energy Companies|329
2|7.4 The Plurality of Unbundling Models Among EU Member States Can Be Preserved|329
2|7.5 The Application of Unbundling Requirements to Offshore Gas Pipelines Should Be Clarified|330
2|7.6 The EU´s Ownership Unbundling Exemption Regime Can Be Maintained As It Is|331
2|7.7 The Third-Country Certification Procedure Is Discriminatory but Can Nevertheless Be Justified|332
2|7.8 Vertical Integration Is a Barrier to Energy Trade, and WTO Law As It Stands Is Unable to Provide a Solution|333
2|7.9 A Future Energy Reference Paper Should Contain Common Disciplines on Unbundling|334
1|Table of Cases|335
2|WTO Panel and Appellate Body Reports|335
2|GATT Case Law|337
2|Arbitral Awards of International Investment Tribunals|337
2|Other Arbitral Awards|340
2|International Court of Justice|340
2|Court of Justice of the European Union|340
2|European Court of Human Rights|341
2|National Courts|341
1|Legislation|343
2|WTO Agreements|343
2|International Investment Agreements|343
2|Trade-Related Agreements|344
2|Other Public International Law Agreements|345
2|Primary EU Legislation|345
2|Secondary EU Legislation|345
2|National Legislation|347
1|Documents|348
2|GATT/WTO Documents|348
2|EU Documents|351
2|Other Documents|356
1|Bibliography|361
1|List of Abbreviations|12
1|Chapter 1: Introduction|14
2|1.1 Private Restraints on Competition and Energy Transmission as a Natural Monopoly|16
2|1.2 Anti-competitive Practices by Vertically Integrated Energy Undertakings|17
2|1.3 Unbundling Measures in Context: Behavioral and Structural Regulatory Approaches|19
2|1.4 Unbundling as a Cross-Sectoral and Global Policy Approach|22
2|1.5 The Focus of Previous Research|26
2|1.6 The Subject and Relevance of This Book|30
2|1.7 The Course of This Book|32
1|Chapter 2: The Unbundling and Unbundling-Related Measures in the EU Energy Sector|34
2|2.1 The First and Second Energy Packages|34
2|2.2 Draft Directives Proposed by the European Commission|36
2|2.3 The Third Energy Package|39
3|2.3.1 Unbundling Requirements|39
4|2.3.1.1 The Three Unbundling Models|39
5|2.3.1.1.1 Ownership Unbundling|40
5|2.3.1.1.2 Independent System Operator|43
5|2.3.1.1.3 Independent Transmission Operator|44
4|2.3.1.2 Choice Between Unbundling Models|47
4|2.3.1.3 Unbundling Requirements for State-Owned Entities|49
4|2.3.1.4 Extraterritorial Application of the Ownership Unbundling Requirements|51
4|2.3.1.5 Third Country Companies and Ownership Unbundling Requirements|55
3|2.3.2 Certification|59
4|2.3.2.1 General Certification Procedure|59
4|2.3.2.2 The Certification Procedure in Relation to Third Countries|60
4|2.3.2.3 Certification Practice in Relation to Third Countries|63
3|2.3.3 Exemptions from Unbundling|67
4|2.3.3.1 General Exemption Procedure|67
4|2.3.3.2 Exemption Decisions and Third Countries|71
2|2.4 Ownership Unbundling and General EU Competition Law|73
1|Chapter 3: Ownership Unbundling and National Constitutional Law and EU Law: A Brief Summary of the Relevant Legal Issues|77
2|3.1 Introduction|77
2|3.2 National Constitutional Law|78
2|3.3 EU Law|81
2|3.4 The Essent Case|87
1|Chapter 4: International Economic Law as a Possible Limit to the Implementation of Unbundling and Unbundling-Related Measures:...|94
2|4.1 Introduction|94
2|4.2 Energy Services Within the Meaning of the GATS|97
2|4.3 Are Energy Services `Services Supplied in the Exercise of Governmental Authority´?|102
2|4.4 Commitments on Energy Services Within the GATS Framework|104
2|4.5 Article XVI GATS (Market Access)|112
3|4.5.1 Quantitative Limitations|115
3|4.5.2 Limitations on Forms of Legal Entity|123
3|4.5.3 Limitations on Foreign Capital Participation|127
3|4.5.4 PTAs Addressing the Relationship Between Ownership Unbundling and Market Access Obligations|129
2|4.6 Article XVII GATS (National Treatment)|131
3|4.6.1 Likeness Analysis|133
4|4.6.1.1 Relationship Between Likeness of Services and Likeness of Service Suppliers|133
4|4.6.1.2 Interpretation of Likeness: GATS Jurisprudence|135
4|4.6.1.3 Likeness of Service Suppliers in the Context of the TEP|137
4|4.6.1.4 Likeness of Services in the Context of the TEP|140
3|4.6.2 No Less Favorable Treatment|141
4|4.6.2.1 Certification Procedure in Relation to Third Countries|141
4|4.6.2.2 Individual Ownership Unbundling Exemption Decisions|143
4|4.6.2.3 The Ownership Unbundling Exemption Regime|151
4|4.6.2.4 Special Ownership Unbundling Requirements for Public Companies|156
2|4.7 Article II GATS (Most-Favored-Nation Treatment)|161
3|4.7.1 Likeness of Services or Service Suppliers|163
3|4.7.2 No Less Favorable Treatment|164
4|4.7.2.1 Individual Ownership Unbundling Exemption Decisions|164
4|4.7.2.2 Variety of Unbundling Models (OU, ISO and ITO)|166
4|4.7.2.3 The Certification Procedure in Relation to Third Countries|169
2|4.8 Article VI GATS (Domestic Regulation)|174
3|4.8.1 Article VI:1 GATS: Reasonable, Objective and Impartial Administration|174
4|4.8.1.1 Exemptions from Ownership Unbundling: Interpretation of the Notion of `Interconnector´|177
4|4.8.1.2 Application of Unbundling Rules to Offshore Sections of Gas Import Pipelines|181
3|4.8.2 Article VI:4/5 GATS: Substantive Disciplines on Domestic Regulation|186
2|4.9 Article XIV (General Exceptions)|195
3|4.9.1 Public Interest Grounds and the Unbundling Regime Under the TEP|196
3|4.9.2 Unbundling and Unbundling-Related Measures and the Security of Energy Supply|198
2|4.10 Article XIVbis (Security Exceptions)|205
2|4.11 Conclusions|209
1|Chapter 5: International Economic Law as a Possible Limit to the Implementation of Unbundling and Unbundling-Related Measures:...|213
2|5.1 Introduction|213
2|5.2 The Framework for Investor-State Claims|217
2|5.3 Admission Rights|219
2|5.4 National Treatment Obligation|221
2|5.5 MFN Treatment Obligation|225
2|5.6 Protection from Direct or Indirect Expropriation|229
3|5.6.1 Introduction|229
3|5.6.2 Compulsory Sale of an Investment: Taking Stock|231
3|5.6.3 Ownership Unbundling Measures as a Compulsory Sale of Investments|239
3|5.6.4 Legality of Expropriations|248
2|5.7 The Fair and Equitable Treatment Standard|253
3|5.7.1 Introduction|253
3|5.7.2 Legitimate Expectations and the Stability of the Legal Framework|254
4|5.7.2.1 An Obligation Not to Modify the Regulatory Framework?|255
4|5.7.2.2 Possible Exceptions to the General Rule|263
3|5.7.3 Unreasonable and Disproportionate Changes to the Legal Framework|267
4|5.7.3.1 Proportionality as an Element of FET|267
4|5.7.3.2 Proportionality and Ownership Unbundling Measures|270
2|5.8 Conclusions|280
1|Chapter 6: International Economic Law as a Possible Vehicle for the Implementation of Unbundling Measures|283
2|6.1 Introduction|283
2|6.2 The Development of International Competition Law|287
2|6.3 Existing Competition Law Provisions in the WTO Agreements|291
3|6.3.1 Article VIII GATS|291
3|6.3.2 Article IX GATS|298
3|6.3.3 Article XVII GATT|298
2|6.4 A Reference Paper for Energy Services Within the WTO Framework|302
3|6.4.1 Experience in the Telecommunications Sector|303
4|6.4.1.1 The Annex on Telecommunications|303
4|6.4.1.2 The Reference Paper on Basic Telecommunications Services|306
3|6.4.2 Experience in the Tourism Sector|313
3|6.4.3 Experience from Bilateral and Regional Agreements with Energy-Specific Provisions|316
3|6.4.4 The Way Forward: Developing a Reference Paper for Energy Services|320
4|6.4.4.1 General Observations|320
4|6.4.4.2 A Reference Paper on Energy Services and Unbundling Requirements|321
2|6.5 Conclusions|325
1|Chapter 7: Final Conclusions: Unbundling as a Competition Instrument in the Light of International Trade and Investment Law|326
2|7.1 The First Direct Legal Challenge to Unbundling Is Based on International Economic Law|326
2|7.2 The EU and Its Member States Are Free to Impose OU, Subject to Conditions|327
2|7.3 EU Member States Cannot Be Forced to Privatize Their TSOs/Commercial Energy Companies|329
2|7.4 The Plurality of Unbundling Models Among EU Member States Can Be Preserved|329
2|7.5 The Application of Unbundling Requirements to Offshore Gas Pipelines Should Be Clarified|330
2|7.6 The EU´s Ownership Unbundling Exemption Regime Can Be Maintained As It Is|331
2|7.7 The Third-Country Certification Procedure Is Discriminatory but Can Nevertheless Be Justified|332
2|7.8 Vertical Integration Is a Barrier to Energy Trade, and WTO Law As It Stands Is Unable to Provide a Solution|333
2|7.9 A Future Energy Reference Paper Should Contain Common Disciplines on Unbundling|334
1|Table of Cases|335
2|WTO Panel and Appellate Body Reports|335
2|GATT Case Law|337
2|Arbitral Awards of International Investment Tribunals|337
2|Other Arbitral Awards|340
2|International Court of Justice|340
2|Court of Justice of the European Union|340
2|European Court of Human Rights|341
2|National Courts|341
1|Legislation|343
2|WTO Agreements|343
2|International Investment Agreements|343
2|Trade-Related Agreements|344
2|Other Public International Law Agreements|345
2|Primary EU Legislation|345
2|Secondary EU Legislation|345
2|National Legislation|347
1|Documents|348
2|GATT/WTO Documents|348
2|EU Documents|351
2|Other Documents|356
1|Bibliography|361