EUROPEAN TRANSPARENCY UPDATE Olaf Islei European Strategy Team 04 June 2009
PHASE ONE
TRANSMISSION TRANSPARENCY PROJECT FINALISED 26 MAY 2009 Voluntary project to publish information on capacity availability and gas flows Seventeen TSOs agreed to publish daily information for seven deliverables TSOs to publish data at cross-border interconnection points except where less than 3 shipper rule applies TSOs agreed to publish by one of three milestones: May, September or December 2008
PROJECT OVERVIEW: JANUARY 2008 E.ON GT Fluxys Svenska Kraftnät RWE TNG National Grid IUK Gas-link WIN-GAS On-tras GRT gaz Energinet.dk Gas-unie DT DEP Swede-gas GRT-gaz DT GTS BBL (C1) Max technical capacity in place earlier (C2) Interruption later final (C3) Daily commercial firm and interruptible capacity (F1) Daily flow / aggregated Allocation (F2) Daily prompt allocation information (F3) Daily aggregate day-ahead nominations (F4) Historic gas flow information database April 2008 Existing before project start October 2008 no answer December 2008
PROJECT OVERVIEW: MAY 2009 E.ON GT Fluxys Svenska Kraftnät RWE TNG National Grid IUK Gas-link WIN-GAS Ontras GRT-gaz Energinet.dk Gasunie DT DEP Swedegas GRT-gaz DT GTS BBL (C1) Max technical capacity in place (C2) Interruption in place In place (C3) Daily commercial firm and interruptible capacity (F1) Daily flow / aggregated Allocation Oct 2009 May 2009 (F2) Daily prompt allocation information (F3) Daily aggregate day-ahead nominations July 2009 Dec 2009 No date (F4) Historic gas flow information database Number of IPs 22 19 1 5 8 4 3 9 6 7 2 25 3 minus rule IPs 12 TSOs report published Specific date Less than three shippers Not committed to date Not applicable
PHASE TWO
EUROPEAN STORAGE TRANSPARENCY PROPOSAL AGREED GRI NW regulators and Gas Storage Europe (GSE) wrote to storage operators to request support and participation Address security of supply concerns ahead of winter and step toward third package implementation Updated weekly Volume of gas in storage Eight hub areas Some major storage operators missing 1 October and 30 November 2009 Updated daily Volume of gas in storage Aggregated inflows Aggregated outflows Eight hub areas Including all major storage operators
EUROPEAN TRANSMISSION TRANSPARENCY NO AGREEMENT ON WAY FORWARD GRI NW Stakeholders are in the process of agreeing new deliverables Network users’ minimum transparency requirements New third package requirements European Commission transparency guidelines Transmission operators developing a proposal… … GRI NW stakeholder group meeting on 9 June in Paris
THIRD PACKAGE REQUIREMENTS Ex-ante and ex-post, supply and demand information based on nominations, forecasts and flows TSO measures taken as well as costs incurred and revenue generated to balance the system Sufficient, well timed and reliable on-line based information on balancing status of network users TSO to aggregate and publish information on volume of gas in storage, inflows and outflows on a daily basis
EUROPEAN COMMISSION DRAFT COMITOLOGY PROPOSAL Annex 3 of the European Gas Regulation Examples New requirements on the format for publication New information on access services i.e. gas quality requirements and inter-TSO balancing agreements New requirement for “real time” of information on capacity availability and interruptions and flows REQUIREMENTS IN THE ANNEX ARE NOW MORE DETAILED – SCOPE TO INFLUENCE
PROCESS FOR COMITOLOGY Timetable Comments on the draft by the end of June Impact analysis over the summer Submit for comitology in September Routes to influence European Commission Directly Organisations such as IFIEC and EFET Through Ofgem and DECC (Direct and via ERGEG)
CONCLUSION Welcome views of shippers and consumers on the Commission’s comitology proposals Anything you would like to see published but currently missing Any areas where you think the guidelines could be more precise By Monday 15 June Support for the Regional Initiatives as a tool for early and coordinated implementation of new European legal requirements http://www.energy-regulators.eu/portal/page/portal/EER_HOME/EER_INITIATIVES/GRI/North_West
EUROPEAN NETWORK CODES
EUROPEAN CROSS BORDER CODES Agency for Cooperation of European Regulators (ACER) will develop Framework Guidelines European Network of TSOs (ENTSOs) will draft cross-border codes Codes will be made legally binding through comitology process But will be “without prejudice to Member State’s rights to establish national codes” Length/depth of framework guideline will depend on the issue being addressed Current consultations as “input to framework guidelines”
EUROPEAN CROSS BORDER CODES EC defines priorities for network codes 6 Months EC requests ACER to submit framework guidelines Agency prepares Framework Guidelines ENTSOs prepares network codes 12 Months EC requests ENTSOs to submit network code 3 Months ACER approves network codes ENTSOs submits network code to ACER ACER submits network code to EC when satisfied, recommending approval via Comitology COMITOLOGY FIRST EU NETWORK CODES BY 2012 AT THE EARLIEST
DEVELOPING FRAMEWORK GUIDELINES Step 1 “Initial Impact Assessment” (IIA) or preparatory work (Before ACER) Identification of problems and objectives Identification of policy options (pros and cons) Public consultation Selection of policy option (if possible) Step 2 preparation/drafting of framework guideline by the Agency (After ACER) Draft framework guideline Finalised framework guideline To complement processes: Calls for evidence (only for new areas), workshops, public hearings and ad hoc experts groups
EUROPEAN CROSS BORDER CODES Network security and reliability rules Network connection rules Third-party access rules Data exchange and settlement rules Interoperability rules Operational procedures Capacity allocation and congestion management rules (CAM and CMP) Rules for trading Transparency rules Balancing rules Rules regarding harmonised transmission tariff structures Energy efficiency regarding electricity networks PILOT PROJECT TO TRY OUT THE PROCESS LIKELY TO BE ON CAPACITY ALLOCATION AND CONGESTION MANAGEMENT
PARTIES NEED TO START ENGAGING NOW CONCLUSION Need to consider likely impact for GB consumers Opportunities for shippers and consumers to influence processes Respond to consultations Sit on experts group Via regulator representing GB in ACER Via TSO representing GB in ENTSO ERGEG is keen to get started now – focus on four priority areas (esp. pilot project) Legally binding codes are some way off PARTIES NEED TO START ENGAGING NOW