1. FG Transmission Tariff TITRE 4 February 2014 Interoperability and Data Exchange Rules for European Gas Transmission Networks Geert Van Hauwermeiren, CREG Chair Task Force Interoperability, ACER 29th ECRB Gas Working Group meeting, Vienna

2. 29th ECRB GWG, 4 February 2014 I NTEROPERABILITY & D ATA E XCHANGE R ULES Content 1.Introduction & process; 2.Content of network code on Interoperability and Data Exchange rules; 3.Conclusion. 2

3. 29th ECRB GWG, 4 February 2014 I NTEROPERABILITY & D ATA E XCHANGE R ULES Shipper Gas Flow Manager Grid Operator Metering Agent Gas producerGas User Integrated Cie 1 2 3 4 5 6 7 7 8 9 10 11 12 13 14 Contract Nomination & Confirmations Measures Allocation / Billing Commodity Transport Commodity Trader From a straightforward value chain... … towards a complex combination of value chains Introduction 3

4. 29th ECRB GWG, 4 February 2014 I NTEROPERABILITY & D ATA E XCHANGE R ULES Shipper Gas Flow Manager Grid Operator Metering Agent Gas User Trader 2 2 3 4 5 6 7 7 8 9 10 11 12 13 14 Shipper’ Gas Flow Manager’ Grid Operator’ Metering Agent’ Gas producer Trader´ 2 3 4 5 7 7 8 9 10 11 12 13 Shipper’’ Gas Flow Manager’’ Grid Operator’’ Metering Agent’’ Gas User Trader 1 3 4 5 6 8 9 10 11 12 14 Trader’’ … demanding for thorough & efficient coordination Let operators work together to optimise system to system performance More roles & actors, more transactions (types and volume) in any direction; Needs a harmonised approach, to clear barriers (restrictions for trade). Introduction 4

5. 29th ECRB GWG, 4 February 2014 I NTEROPERABILITY & D ATA E XCHANGE R ULES Aim and Objective 5. to ensure that users of two or more transmission systems operated by separate entities in Europe, do not experience restrictions in flows, due to:. technical differences;. operational behaviour;. wrong communication language; higher than may be expected if the relevant networks were efficiently operated by a single entity.. to encourage and facilitate shipment of gas across gas transmission systems within the EU, and thereby move towards greater internal market integration. Introduction

6. 29th ECRB GWG, 4 February 2014 I NTEROPERABILITY & D ATA E XCHANGE R ULES Framework guidelines process 6 April – September 2011 Scoping exercise, to understand interoperability and identify the issues based on stakeholder input: Interconnectio n Agreement; Nomination process; Units; Gas Quality; Data Exchange; Capacity Calculation. October – December 2011 Problem Identification exercise, to take into account drafting of preliminary impact assessment: Nomination process handed over to NC Balancing. January – July 2012 26 January 2012: EC invitation letter; 26 July 2012 : publication of the final framework guidelines text: Odourisation to become a separate chapter Process of a network code

7. 29th ECRB GWG, 4 February 2014 I NTEROPERABILITY & D ATA E XCHANGE R ULES NC Development: further steps 7 11 September 2012 - 10 September 2013 Revision of NC ENTSOG Comitology Framework guideline ACER Network code ENTSOG Review ACER 26 January 2012 - 26 July 2012 21 November 2013 18 December 2013 15 January 2014 Process of a network code 28 April 2014 Capacity Calculation to NC CAM process …

8. 29th ECRB GWG, 4 February 2014 I NTEROPERABILITY & D ATA E XCHANGE R ULES General Provisions/Final Provisions Interconnection Agreements Units Gas Quality Odourisation Data Exchange NC Interoperability and Data Exchange Content of NC 8

9. 29th ECRB GWG, 4 February 2014 I NTEROPERABILITY & D ATA E XCHANGE R ULES Business Rules (shipper’s registration, matching rules, flow control/imbalance handling, exception notice in case of deficient gas quality, allocation regime (OBA)); Technical Rules (maintenance, measurement, right of access, exceptional flow conditions in circumstances which might cause capacity reductions, delivery conditions (pressure, temperature, gas quality), energy conversion; Data exchange: Communication and Online Data Transmission Duration of the Interconnection Agreement Confidentiality Liability and Circumstances Excluding Liability Governing Law and Dispute Resolution Amendment of the Interconnection Agreement Force Majeure F RAMEWORK G UIDELINES & N ETWORK C ODES Interconnection Agreements Content of NC 9

10. 29th ECRB GWG, 4 February 2014 I NTEROPERABILITY & D ATA E XCHANGE R ULES Interconnection Agreements : benefits as basic instrument Harmonization of Interconnection Agreements leads to harmonizing (main issues): Matching rules; Flow control (flow transition, ramp-up, ramp-down, …); Allocation regimes for gas quantities; Measurement principals; Communication in case of exceptional events … In a nutshell,... leads to harmonization of the operations at IPs for both TSOs and shippers; Default rules will undoubtedly lead to uniformity amongst European TSOs; Transparency provided to shippers when their rights/obligations are affected. Content of NC 10

11. 29th ECRB GWG, 4 February 2014 I NTEROPERABILITY & D ATA E XCHANGE R ULES F RAMEWORK G UIDELINES & N ETWORK C ODES Units 11 Therms 15°C Therms 25°C GJ 15°C GJ 25°C MWh 0°C MMJ 25°C MMJ 15°C Mixm³(n) Sm³ m³@20°C PRE network code : bar : °C : m³(n) : kWh/m³(n) POST network code Network Code Content of NC Pressure Temp. Volume GCV  For pressure, it should be indicated whether it refers to absolute (bar(a)) or gauge (bar(g)).  The reference conditions for volume shall be 0°C and 1.01325 bar(a).  For GCV, Energy and Wobbe-index the combustion reference temperature shall be 25°C.

12. 29th ECRB GWG, 4 February 2014 I NTEROPERABILITY & D ATA E XCHANGE R ULES Problem Identified : Gas Quality 12 The issue of Gas Quality is very important to allow natural gas to be treated as a freely tradable “commodity” in the market place, to allow liquidity to grow. The gas markets are becoming more & more interconnected with the prospect that gas quality specification differences across the market can lead to restrictions for trade and free flow of gas. Without having a “standard” harmonised approach on specifications, case by case installed (transparent) services shall have to connect Markets (facilitating approach). A governance structure is installed to steer towards a solution. Content of NC

13. 29th ECRB GWG, 4 February 2014 I NTEROPERABILITY & D ATA E XCHANGE R ULES 13 Gas Quality  No harmonisation of Gas Quality specifications envisaged ! It is certainly a problem at some borders and likely to become one at others with changing flow patterns (reverse flow, new sources). TSO cooperation Short term fluctuations in gas quality and a lack of end-user information were identified as additional problems. Information provision Close monitoring of future developments is required Monitoring Content of NC

14. 29th ECRB GWG, 4 February 2014 I NTEROPERABILITY & D ATA E XCHANGE R ULES 14 Odourisation Different practices in odourisation hamper cross-border trade and market integration.  ENTSOG’s 2011-2020 Ten Year Network Development Plan A problem with cross regional consequences (from South to NW) The topic thus fully falls within the scope of the Network Codes as defined in article 8(7) of the Gas Regulation. Content of NC

15. 29th ECRB GWG, 4 February 2014 I NTEROPERABILITY & D ATA E XCHANGE R ULES Evidence : Option taken: Full harmonisation is necessary to allow system users to overcome the difficulties they are currently facing in relation to the lack of harmonisation. F RAMEWORK G UIDELINES & N ETWORK C ODES Data Exchange 15 Content of NC

16. 29th ECRB GWG, 4 February 2014 I NTEROPERABILITY & D ATA E XCHANGE R ULES 16 Conclusions :  NC shows a high degree of compliance with the FG; But some issues remain (not highly substantial);  Outcome of ENTSOG’s work: Conclusion

17. 29th ECRB GWG, 4 February 2014 I NTEROPERABILITY & D ATA E XCHANGE R ULES Thank you for your attention Thank you for your attention! www.acer.europa.eu