European Developments

Transmission Workgroup5th April 2012

Gas Balancing Update

Transmission Workgroup

5th April 2012

Stakeholder

Main activities of ENTSOG and stakeholders during BAL NC development phase

Workshop

SJWS 1 •Roles & responsibilities•Imbalances / financial•Within-day obs.•Info. ProvisionAbove to be confirmed

Dec Jan Feb Mar Apr June JulyMayNov Jun JulOct Apr Aug Sep Nov

Invitation from Commission

SubmitNetwork Code

Project launch13/14 Dec 23 SJWS

7-8 SJWS

Consultation

May

Workshop

FG Development of Network Code with stakeholder on the basis of the final Framework Guidelines ACER

2011 2012

Development of launch documentation

Development of draft network code in cooperation with stakeholders

Refinement of network code based on the feedback by stakeholders

SJWS SJWS SJWS SJWSFeedback on drafted Network Code by ENTSOG

Workshop

ENTSOG

SJWS 2 • Balancing products• Merit order• Charges• Interim measuresAbove to be confirmed

SJWS 3 • Within-day obs.• Info. provision• Balancing products• NominationsAbove to be confirmed

SJWS 5 • To be confirmed

SJWS

Oct

9 SJWS 26 SJWS

11-12 SJWS

SJWS 4 • Consolidation• Preview of network code• Cross-border topicsAbove to be confirmed

ENTOG - project plan

3

Consultation Phase

ENTSOG

13 April to 14 June - Formal Consultation

Web address

www.entsog.eu

Interoperability Update

Transmission Workgroup

5th April 2012

Interoperability Update

ACER published its draft Framework Guideline and associated questionnaire for consultation on 16th March 2012

The consultation closes on 16th May 2012

It includes Data Exchange which was originally intended to have its own separate Network Code

These slides provide an overview of ACER’s proposals

Purpose, scope and leadtime

The purpose of the document is to give guidance to ENTSOG to develop the Interoperability Network Code

ACER does not specifically state that the scope will be limited to Interconnection Points, but this appears to be implicit for most topic areas

Unless specifically stated otherwise, TSOs should comply with the Interoperability Network Code within 18 months after it becomes law

1. Interconnection Agreements

A harmonised template is proposed

Covers both operational aspects (eg. measurement) and commercial aspects (eg. shipper allocations)

TSOs are to agree how to deal with “operational imbalances”, OBAs being the “standard preferred option”

Contemplates TSOs undertaking a ‘matching’ process for shipper nominations either side of an IP

2. Harmonisation of Units

When “communicating to counterparties”, ACER proposes that the Network Code shall determine the harmonisation of units for:

Energy

Volume

Pressure

Gross CV

3. Gas Quality

The focus is on transparency and TSO co-operation

Adjacent TSOs should “agree where necessary on the handling of gas quality differences”

TSOs should develop solutions, consult with the market and then submit proposals to relevant NRAs

TSOs should be obliged to “provide relevant network users with pertinent information on gas quality and variations thereto”

ENTSOG should be obliged to publish a biennial gas quality outlook within the TYNDP

4. Odourisation

Non-odourised gas in transmission systems should be the default rule if bilateral agreements fail to address differences in odourisation practices

An implementation leadtime of 36 months is proposed

5. Data Exchange

Extension of CAM requirements to “all other areas where TSOs exchange data between each other or communicate data to counterparties”

The Network Code shall “foresee” a common, standardised messaging protocol for these communications

The selection of format shall be based on a cost-benefit analysis subject to consultation with industry

6. Capacity Calculation

In order to ensure capacity release is maximised at both sides of an IP, ACER proposes obligations on TSOs to:

Provide their methodology used to calculate “technical capacity” at an IP

Co-operate to reduce discrepancies in capacity availability either side of an IP

Provide quarterly updates of technical capacity

A procedure should be included in the Code for identifying and dealing with capacity discrepancies

Obligation on ENTSOG to provide an annual report to ACER on capacity discrepancies and measures being taken to reduce them

7. Cross-border co-operation

TSOs should apply their general mandate for co-operation by implementing the relevant harmonised rules in a timely, technically feasible and economically reasonable manner

ENTSOG shall make recommendations for the improvement of the interoperability and data exchange rules

Next Steps

National Grid NTS is developing its response to the consultation

National Grid NTS will also feed into the ENTSOG and GIE responses

We will provide a summary of our consultation response at the June Transmission Workgroup

We would also encourage the industry to respond

EU CAM Network Code and CMP Guideline Proposal Update

Transmission Workgroup

5th April 2012

Capacity Allocation Mechanism (CAM) - Update

Network Code was formally issued to ACER 6th March 2012

ACER have since raised a significant amount of questions and challenges with regards to the content of the CAM Network Code

Discussions held between ENTSOG and ACER representatives, with National Grid and Ofgem present

Discussions continue.

Congestion Management Procedures (CMP) Guidelines - Update

DECC has sent the GB Stakeholder comments to the Commission and subsequently issued to the GB stakeholder group via Ofgem on the 8th March 2012

A revised version of the CMP Guideline will be sent to Member States approximately one month before the next Comitology meeting which is to be held on Friday 20 April 2012

The new text is therefore expected to be available before the next GB stakeholder group meeting to be held on the Friday 13th April 2012

EU Tariffs Update

Transmission Workgroup5th April 2012

ACER Tariff Scoping Consultation

The ACER Tariff Scoping consultation closed on 26 March 2012.

The 35 non-confidential responses are available on its website. http://www.acer.europa.eu/portal/page/portal/ACER_HOME/Stakeholder_involvement/Public_consultatations/Open_Public_Consultations/PC-06/Responses%20to%20PC-061

An ‘expert group’ to provide support to ACER on tariffs has been set up and the first meeting will be held 2 April 2012.

A verbal update will be provided at the Transmission Workgroup.

EU Updates Timetable

Timetable aims to highlight the key items (consultations, workshops, decisions, etc.) National Grid NTS expect to cover via this agenda item in the forthcoming months

Topic TX Workgroup

• CAM update• Balancing Consultation update - Provide further details of

consultation and initial views of issues for consideration by GB stakeholders

May 2012

• Balancing update - Provide update on our views and response

• CAM update• Summary of NG response to Interoperability FG

consultation

June 2012

• Output from SJWS on TYNDP / Final ENTSOG TYNDP proposal

July 2012