Place your chosen image here. The four corners must just cover the arrow tips. For covers, the three pictures should be the same size and in a straight line. Workgroup 0493: EU Gas Balancing Code - Daily Nominations at Interconnection Points (IP) Phil Lucas 1 st May 2014

Background  EU Balancing Code implementation required by October 2015  Nominations process: timescales and rejections, etc.  NG are not currently exercising the option to approach our NRA for a 12 month extension  EU CAM Code implementation required by November 2015  ‘Single nomination’ process for bundled capacity  EU Interoperability Code in ‘comitology’ – it was expected that implementation would be required for October 2015  Nominations matching process  Data exchange 2

Framework for IP Nominations 3 EU Balancing Code EU Capacity Allocation Mechanism (CAM) EU Interoperability Code Code ENTSOG Business Requirements Specification (BRS) for Nominations EASEE-gas Message Implementation Guidelines (Nominations and Matching Process)

Solution 1.New terms 2.Application 3.Nominations and Renominations – General 4.Processing of Nominations 5.Processing of Re-nominations 6.Rejection and Revision of Nominations and Renominations 7.Physical or Locational Trades at IPs 4

1. New Terms; and 2. Application  Additional terms required in new Nomination process  Rules apply in respect of each System Entry Point and Connected System Exit Point at an Interconnection Point (as now)  Transitional requirements in September 2015  For gas days up to and including 30th September 2015 – existing process  For gas days 1st October 2015 onwards – new process 5

3. Nominations and Renominations General  ‘Single Sided’ and ‘Double Sided’ nominations  Communications (User to Transporter)  Acknowledgment  Quantity types – ‘Processed’ and ‘Confirmed’  Multiple nominations per User per Day  Initiating Transporter and Matching Transporter role  Matching rule publication 6

Nominations at IPs Examples 7

4. Processing of Nominations  Submission window: D-30 to D-1 (13:00)  Default Nomination Rule – Nominated Quantity deemed to be zero in absence of User Nomination  Mandatory information requirements  Determination of Processed Quantity by NG  Notification of Confirmed Quantity: by D-1 (15:00) 8

5. Processing of Renominations  Submission window: D-1 (15:00) to D (02:00)  Negative Implied Flow rate validation  Daily nomination must not exceed the volume deemed to have already flowed at effective time of flow rate change  Mandatory information requirements  Determination of Processed Quantity by NG  Notification of Confirmed Quantity – by Hour Bar minutes  Effective time of flow rate change – Hour Bar minutes 9

Single Side Nomination Processing 10

Double Sided Nomination Processing 11

6. (A) Rejection  National Grid NTS may reject Nominations or Renominations:  Absence of mandatory information  Not submitted by User or its User Agent  In a Transportation Constraint, nominations above capacity entitlement  Negative value or Negative Implied Flow rate  Absence of a Double Sided Nomination to match against  Absence of matching information from Adjacent Transporter  Timing and consequence –  User notified within 120 minutes of Hour Bar  Prevailing Confirmed Quantity applies 12

6. (B) Revision  National Grid NTS may revise Processed Quantity:  In a National Grid NTS Transportation Constraint / Emergency  To match capacity entitlement  To a value deemed appropriate (Emergency only)  In the case of multiple Confirmed Quantities, the revisions will pro-rated  National Grid NTS may revise Confirmed Quantity:  Where the Adjacent Transporter has revised its Processed Quantity 13

7. Physical or Locational Trades at IPs  Confirmation lead time – Hour Bar +120 minutes  Opportunity for User to provide Renomination/s up to next Hour Bar  In absence of such Renomination/s, National Grid NTS will revise the previously determined Processed Quantity  In the case of multiple Confirmed Quantities, the revisions will pro-rated  User may subsequently revise subject to availability of Renomination process 14

Regime Comparison 15 Current Arrangements at Interconnection Points Prospective Arrangements at Interconnection Points One type of Nomination / Renomination‘Single Sided’ and ‘Double Sided’ Nominations and Renominations No details of User’s counterparty at IP requiredDetails of User’s counterparty at IP required One Nomination per System Entry Point or Connected System Exit Point at the IP per User One or more Nominations per System Entry Point or Connected System Exit Point at the IP, depending on the types of nomination used and the number of counterparties per User No NG NTS interaction with Adjacent Transporters at IPsNG NTS interaction with adjacent TSOs at IPs to undertake Nomination ‘matching’ process. Specification of an Initiating and Matching Transporter role. Nomination submission period: D-30 to D-1 13:00 (DM Output) D-30 to D-1 14:30 (Input) Nomination submission period: D-30 to D-1 13:00. Note that the adjacent Transporters may not offer the same earliest submission time. Renomination submission period: 15:00 D-1 to 03:00 D Renomination submission period: 15:00 D-1 to three hours prior to the end of the Gas Day Typically 1 hour processing timeProcessing time up to 2 hours Communications as per UK Link Manual / GeminiCommunications as per file formats or equivalent data format developed by ENTSOG Limited ability to reject a nomination (e.g. validation failure). Application of Overrun Charges for nominations in excess of capacity entitlement. Additional reasons for Transporter to amend or reject a nomination. Application of Overrun Charges for nominations in excess of capacity entitlement

Working Towards 1 October 2015  NG discussions with adjacent TSOs to agree nominations framework principles and implementation date/s - Q onwards  The Nomination information required in the Interconnection Agreements (IA) will be included with the other EU code IA changes  NG discussions with adjacent TSOs may lead to variations to Mod

Next steps  What topics do stakeholders want NG to cover at the next Workgroup on the 22nd May? 17

Appendix Matching Examples 18

Example 1 – “Easy” match (Double Sided Nom)

Example 2 – “Easy” match (Single Sided Nom)

Example 3 – “Easy” match (Multiple Double Sided Nom)

Example 3 – Lesser Rule (Double Sided Nom)

Example 4 – Overrun (Double Sided Nom)