Full unbundling meaning

Background—the First to Fifth Energy Packages Under Article 194 of the Treaty on the Functioning of the European Union (TFEU), the Member States have, among other matters, granted the EU powers to ensure the operation of the energy market, protect security of energy supply, advance energy efficiency and saving and the development of novel and renewable energy forms, and support the interconnection of national energy networks. Article 194 further requires the European Parliament and the Council to adopt the measures needed to realise these goals. Accordingly, since the 1990s, a sequence of legislative packages has been enacted to create a shared EU-level rulebook to open national energy markets. These are set out below: First Energy Package — adopted between 1996 and 1998, initiating the first liberalisation of national energy markets Second Energy Package — adopted in 2003, enabling industrial and domestic customers to choose their energy suppliers from a broader field of competitors Third Energy Package — adopted in 2009, introducing: ...

What are OFTOs? Offshore Transmission Owners (OFTOs) hold and operate the offshore transmission assets that link offshore wind farms to the mainland electricity system. These assets span the full chain from the offshore interface with the generating wind farm through to the onshore grid connection point, and include all cables and related connection equipment. Commonly, the assets comprise any offshore platforms and linked substations, export cables, the onshore substation, and the onshore cable routes to the Distribution Network Operator substation. For details on the various participants in the Great Britain (GB) onshore and offshore transmission landscape, and how they sit within the broader GB electricity market, see Practice Note: The Great Britain electricity market—an introduction. Introduction to the OFTO regime The legislative framework In 2011, the EU Third Energy Package was transposed into UK law via the Electricity and Gas (Internal Markets) Regulations 2011 (2011 Regulations), SI 2011/2704, establishing ‘ownership unbundling’. This requires the separation of transmission system ownership and operation from gas and electricity generation,...

This Practice Note is aimed at law firms. It outlines the main points to weigh up when delivering advice or advocacy on an unbundled basis or under a Pay As You Go (PAYG) retainer. If you are thinking about splitting legal services to, or from, a separate business, refer as well to Practice Note: Separate business and unbundling legal services 2019. Risks of unbundling services The hazards associated with unbundling, especially in a PAYG model, often arise from confusion between firm and client about what the retainer actually covers. This can heighten the prospect of professional negligence and/or misconduct where the fee earner: lacks adequate understanding of the client’s situation does not make sure the client plainly understands the limits of the service being provided, and/or inadvertently, through what they do or fail to do, establishes a full retainer—and so takes on the liabilities implied by that arrangement Insufficient knowledge You might be instructed to advise without access to...