26th February 2015 Teleconference 31st IG Meeting South Gas Regional Initiative 26th February 2015 Teleconference

Agenda

(for information by NRAs) II. CAM NC II.1. Results of the last monthly auctions (for information by NRAs)

Allocated capacity (%) of total offered bundled monthly capacity II. CAM NC II.1. Summary of monthly auctions results via PRISMA Participation without incidents. Clearing price was the reference price at every auction.   Allocated capacity (%) of total offered bundled monthly capacity VIP PIRINEOS VIP IBERICO FR-ES ES-FR ES-PT PT-ES October 2014 34 7 November 2014 69 12 December 2014 87 10 January 2015 February 2015 18 March 2015 23 5

(for information by TSOs) II. CAM NC II.2. TSOs proposal of common methodology to maximize technical capacity (for information by TSOs)

II. CAM NC II.2. Capacity calculation and maximisation at interconnections Article 6.1 of Regulation (EU) nº 984/2013 (CAM NC) states that: “(a) In order to maximise the offer of bundled capacity through the optimization of the technical capacity transmission system operators shall take the following measures at interconnection points, […] , the transmission system operators shall establish and apply a joint method, setting out the specific steps to be taken by the respective transmission system operators to achieve the required optimization. NEXT STEPS: Agreement on a common methodology for calculation of capacity in the Region. URGENT: capacity to be sold in the annual auction on 2 March – maximising the offer of bundled capacity at both VIPs in the Region: VIP PIRINEOS and VIP IBERICO

II. CAM NC II.2. Capacity calculation and maximisation at interconnections VIP PIRINEOS (GWh/d) ES FR FR ES Spanish side French side IP Biriatou summer 1 Apr-31 Oct 43 9 10 winter 1 Nov-31 Mar 40 5 20 3 IP Larrau 165

(for information by TSOs) II. CAM NC II.3. Status of TSO’s IT systems for adaptation to daily auctions by 1st November 2015 (for information by TSOs)

(for information by TSOs) III. CMP: last development of OSBB proposal III.1. Common methodology of OSBB for the Region (for information by TSOs)

III. CMP: last development of OSBB proposal NRAs reaction to OS proposal A common document for the Region – agreement by TSOs: TIGF, REN and Enagás, is required. Positive evaluation, as a first step in the right direction to comply with European and national rules. Methodology: it will start with conservative figures and it will continuing increasing the level of risk, once parameters values will be changed. Fixed parameters could be revised after the first year of application. Implementation date should be adapted to the application of daily auctions: November 2015. A public consultation will take place in Spain when both methodologies are submitted (OS&BB).

(for information by NRAs) IV. Balancing NC implementation in the three countries (for information by NRAs)

IV. Balancing NC implementation in the three countries FRANCE The “Trading region South”, a single market zone including GRTgaz South zone and TIGF, will be implemented from 1 April 2015. Both TSOs will share a single trading point in southern France. They will keep two distinct balancing systems but they will use the same balancing marginal prices. The balancing network code will be fully implemented in France in October 2015, consistently with CRE deliberation of 15 January 2015: http://www.cre.fr/en/documents/deliberations/approval/balancing-rules-grtgaz-tigf

IV. Balancing NC implementation in the three countries SPAIN In September 2014, GTS (the Technical System Manager, the agent in charge of the balancing) –following article 52 - sent a justified request to the CNMC asking for an extension of the period to implement the code – by 1 October 2016. In October 2014, CNMC accepted the request. The answer was also sent to European Commission and ACER. The CNMC proposal of “Circular” to regulate the gas balancing is submitted to Public Consultation until 23 March 2015. http://www.cnmc.es/es-es/energ%C3%ADa/consultasp%C3%BAblicas.aspx

IV. Balancing NC implementation in the three countries PORTUGAL During this month, ERSE received from REN Gasodutos (TSO) – following article 52 – a justified request asking for an extension of the period to implement the code – by 1 October 2016. ERSE is preparing the acceptance of the request, which has to be sent to European Commission and ACER during the next 3 months In March it´s foreseen the beginning of working meetings with TSO, DSO and suppliers to discuss the framework to implement balancing NC. The public consultations to approve the new framework regarding Balancing NC, are foreseen for the 2nd semester.

(for information by NRAs) V. Infrastructures V.1.Update of the process of PCIs list (for information by NRAs)

V. Infrastructures V.I. Update of the process of PCIs list Last EC meeting was held on 22 January. Main points discussed were: JRC Methodology to assess candidates Using statics and mathematics formula, JRC transforms the parameters resulting from the CBA application into four indicators of security of supply, competition, market integration and sustainability Feedback from Ministries on the possible candidates approval Comments received from Stakeholders on the clusters proposed by ENTSOG Next RG meeting will be held on 2 March. The Agenda includes the following issues: TYNDP process Updated JRC assessment methodology Candidates presentation ACER/NRAs opinion on cost allocation of enabler projects Outstanding issues on specific projects

(for information by TSOs) V. Infrastructures V.2. Candidate projects of common interests in the Region (for information by TSOs)

VI. Preliminary agenda of the SG meeting 16th March (for discussion)

VI. Preliminary agenda of the SG meeting 16th March

KEY ACTIONS IN THE SOUTH REGION CONCLUSIONS KEY ACTIONS IN THE SOUTH REGION A common methodology, agreed by ENAGAS, TIGF and REN to calculate the capacity at both VIPs in the Region. Publication of capacities to be sold in the annual auction on 3 March (maximising bundled capacities) at both VIPs A harmonized OSBB methodology for the Region, agreed by ENAGAS, TIGF and REN An update on the progress on Bal NC implementation in the three countries, by NRAs. Sharing information on existing infrastructure projects and potential new schemes: hydraulic data to be exchanged by TSOs in order to simulate new interconnection capacities.  

VII. AOB and next meetings SG meeting on 16 March IG meeting in May?