Gas Regional Initiatives Getting to 2014 Steven Gordon Head of the Gas Department, ACER 8 th GRI Co-ordination Meeting Brussels, 27 th February 2012

8 th GRI Co-ordination Meeting27 th February 2012  The contribution from the GRI process  ACER Status Review report - recommendations  Suggestions and ACTIONS to ensure progress  Update of the GRI Work Plans – highlights and areas for cross-regional integration  Way forward Outline of Slides for Madrid

8 th GRI Co-ordination Meeting Updating the work plan - this is where progress within the region is identified Cross-regional work - this is the main area in which progress needs to me made in 2012 Target is Madrid Forum in March to show that all regions are progressing ACER’s recent Message to the GRIs Slide used to describe how we can show real progress: We have a very narrow window of opportunity remaining! 27 th February 2012

8 th GRI Co-ordination Meeting27 th February 2012 Defining Cross-Regional Work  Cross-regional work is not just common work practices shared across all the GRIs. We include this in our work plans, however  The cross-regional work envisaged: Includes aspects of work which will ensure we meet the target of the single European market by 2014, which is less than 2 years from now Includes pilot studies based on work carried out in developing Framework Guidelines and Network Codes These pilot studies and common work areas involve one consistent agreed set of market arrangements in specific areas And apply regionally as well as cross-regionally (i.e. in all countries within a gas region)  This cross-regional work is what we have been encouraging and demanding, and the reason for the inclusion of Work Plans for the GRIs  The work plans are the vehicle for demonstrating that real progress is being made in the GRIs

8 th GRI Co-ordination Meeting27 th February 2012  The Regional Initiatives both in the past and now have conducted useful pilots and other pieces of work which have been welcomed by stakeholders and industry alike (the lack of use of this work after the projects is one argument used by some)  CAM work (with a Network Code in place) should be the first cross- regional pilot – i.e. the establishment of a platform for coordinated auctions at regional level for a common set of bundled products.  Previous pieces of work can be built upon to take the regional and cross-regional work forward. An example: Building on the Good Work Done - CAM Previous CAM pilots/work in the region South region CAM work shared New Regional Work using latest CAM Network Code  In this case previous work on CAM can be used to incorporate elements used in the current/recent work in the South  Project teams (resources) and relationships from these previous projects should help facilitate the establishment of the cross- regional platform used.

8 th GRI Co-ordination Meeting27 th February 2012 Other Issues for GRIs to be addressed  In the last Stakeholder Group in Madrid we made the point that with only 3 countries involved, establishing work across all member states in the region was “easier” than in other regions.  Therefore, we expect that some progress in implementing the pilot work areas can be led from the South region, where projects on the latest CAM platform (based on the latest, soon-to-be-agreed ENTSOG Network Code) are being applied, but this needs to be extended into France to be truly regional, and then across the regions (we address progress on both of these issues today) as planned work for 2012 and  CMP guidelines are also going through the Comitology process, and these arrangements can be piloted regionally and cross- regionally.  Also, work is going on in Balancing and Tariffs in different regions which can become truly regional and then cross-regional projects.  The South South East in particular contains many heterogeneous Member States and work is progressing there which can become regional in  The North-West currently has no pilot work in progress or planned

8 th GRI Co-ordination Meeting27 th February 2012 Facilitating Cross-Regional Co-operation North West South Some Countries play a strategically significant role Their geography and importance means that they are in 2 regions These countries can play an important role in carrying the work cross regionally For example: Participates in exercise in South region France France shares experience in South region with NW partners North West GRI Shares work going on in North West with France and brings it to South South East region Germany North West South East

8 th GRI Co-ordination Meeting27 th February 2012 Work Plans – Progress from Today  Today we can discuss ways to plan the evolution of work between Member States (including bilateral arrangements) to truly regional and cross-regional work on a 2 year planning horizon.  Capacity Allocation Mechanism, being agreed, is work that should be established across regions in Other areas of work can be planned for regional implementation by end of 2012 and cross-regional in  Compliance monitoring – of the 3 rd package, and in specific areas such as transparency, and Security of Supply  We can also discuss the role the Regional Initiatives can play in other areas related to the development of arrangements for the single market (relate the ACER work areas and priorities for 2012 and 2013)  The following table can be used to identify work areas (relating to FGs and NCs, compliance areas, and other Market Arrangements) which can identify lead regions, key personnel and plans for engagement between regions including visiting other regions to discuss sharing work. What we come up with can then be incorporated into work plans (which the IG including TSOs will put into practice). Some suggestions for a start on this table have been entered, but we need to work together on this.

8 th GRI Co-ordination Meeting27 th February 2012 Work AreaLead RegionResponsibility / Key Contacts Vehicle (for regional and cross-regional establishment) CAM Platform GATRAC South South South East Security of SupplySouth South East Co-ordination meeting in Brussels (27/02/12) South and North West Implementation / Stakeholder Groups TransparencyNorth West? BalancingSSE (Austrian Gas Hub) Cross-border can become cross-regional Congestion Management (CMP) TariffsSouth Work to be incorporated into Plans

Thank you for your attention Thank you for your attention!