Gas Transmission Europe European wide body representing cross-border gas transmission companies and the transmission arms of integrated gas companies

GTE Members

GTE ambition and objectives Promoting the development of a fully operational European transmission system Promoting the enhancement of cross-border transmission Supporting interoperability of the European transmission systems Promoting market solutions Contributing to the setting of a clear and stable public policy framework Voicing the opinion of the transmission companies in Europe.

GTE organisation GTE has set up several working groups to work on its objectives: WG Tariffs (Bernard Brelle) WG Capacity and Congestion (Fritz Gautier) WG Interoperability (solid contribution to EASEE-gas) (Patrick Wailliez) WG Balancing and Storage  recently dissolved New: WG Security of Supply (Brian Withington)

GTE Publications ( www.gte.be) GTE Position Paper Reports regarding Balancing & Storage, Capacity & Congestion Management, Interoperability and Transmission Tariff issues European grid map including a traffic light system with respect to available capacities at all major cross-border points European-wide comparison of transmission tariffs

GTE activities Actively involved in the Madrid Forum Regular meetings with the associations representing the users of the grid (EFET, Eurelectric, Eurogas, IFIEC and OGP) Setting up of EASEE-gas jointly with the Edigas Group

Madrid Forum Guidelines for Good Practice Apply Transparency requirements Non-discrimination requirements Promotion of interoperability Facilitation of cross border trade to: TPA services; tariff structure; balancing and imbalance charges and secondary markets

Implementation of Guidelines for Good Practice: Responses to GTE Questionnaire Responses received Responses not yet received

GTE questionnaire: Compliance TPA Services Are unbundled TPA services offered? Non discriminatory services to all customers? Conditions of services in English published? Physical & available capacities published? TSO activity pursues harmonization to facilitate interoperability? Long and short term services offered? TPA services and access rules facilitate transmission to neighbouring regimes? Capacity services facilitate trading? Nomination procedures standardized? Non discriminatory transport capacity allocation? Procedure for short term congestion / shortcoming / failure in place TSO independence secured / guaranteed?

GTE Questionnaire: TPA services

GTE Questionnaire: transparency of capacity

GTE Questionnaire:Tariff structure TSO’s should publish information on: General tariff methodology Definition of the cost base Tariff structure (point-to-point, Entry-exit, zonal etc.) Functional allocation and capacity/commodity allocation Detailed tariff design Indexation of tariffs Specific tariffs for special services (i.c. backhaul) Regulatory involvement in tariff setting

GTE Questionnaire: Tariff Structure

GTE Questionnaire: Balancing TSO’s should: Design non discriminatory, transparent balancing rules Ensure that the rules are applied unbiased Ensure charges are cost neutral with incentives Ensure compatibility between balancing regimes Design non hampering balancing regimes Facilitate pooling Inform the market about the imbalance status

GTE Questionnaire: Balancing

GTE Questionnaire: secondary markets TSO’s should: Allow TPA capacity rights to be tradable Discourage Capacity Hoarding, Facilitate re-utilisation

GTE Questionnaire: secondary markets

Current issues European Energy Infrastructure 2nd European Gas Directive Security of Supply

European Energy Infrastructure, GTE position Investment climate must be based on economic principles and give proper incentives Investment decisions by market players  avoid European central planning Avoid obligations to invest. If used nonetheless: assess possible distortions to the market Long term contracts will continue to play an important role GTE actively pursues practical guidelines agreed in Madrid GTE advocates a clear and stable regulatory framework

2nd Directive, GTE position: Separate approach for gas and electricity Directives; gas is not a universal service Stable and predictable legal framework needed  but now qualitative changes to the gas Directive after two years only 2nd Directive must not conflict with practical guidelines agreed at Madrid Forum Take into account GTE comments on European Energy Infrastructure Furthermore: Unclear definition of system; No need for a European regulator; Further legal unbundling not required

Security of supply Mission of the GTE Security of Supply WG: provide a clear understanding of the concept of security of supply as well as the roles and responsibilities of market players; ensure that the pivotal role of investment in transportation infrastructure is properly recognised (and rewarded) recommend an appropriate framework for ensuring continued security of supply which minimises centralised intervention and maximises industry decision making

CONCLUSIONS GTE contributes actively and positively to the development of the European gas market and the Madrid Process GTE differs with CEER and DGTREN mainly on opinion on market influence vs. regulatory involvement GTE strongly opposes European central planning GTE members are making progress on implementation of Guidelines for Good Practice