1. Allocation of Capacity in Portugal Under the New Regulation
24th IG meeting S-GRI, Madrid
September 23, 2013

2. New Regulatory Framework
Index
Main changes
New Regulatory Framework
Capacity Managment
Next Steps

3. enabling the implementation of secondary market
Main changes
What has changed with the new regulation on Access to Gas Infrastructures?
5 Major changes
Assignment of capacity rights by the TSO for MT and ST products
Convergence towards CAM NC rules
Ex-ante payment of capacity rights
Capacity allocation via booking platform (Primary Market)
Promotion of the secondary market for capacity rights trading
Shippers must buy capacity rights to use the transmission system
Capacity allocation calendar, standardization of products, allocation through auction, etc.
Shippers pay according to allocated capacity, instead of used capacity, at all entry/exit points (except LDC)
Improves interaction between primary and secondary market, while enabling daily auctions
Enhances liquidity, avoiding contractual congestion
The new Regulation sets a complete new standard for capacity booking and trading, promoting convergence with CAM NC and
enabling the implementation of secondary market

4. New Regulatory Framework
Index
Main changes
New Regulatory Framework
Capacity Managment
Next Steps

5. Before After Changes within the scope of Regulatory documents
New Regulatory Framework
Changes within the scope of Regulatory documents
Relevant regulatory documents that govern the capacity allocation process:
Main activities
Programming / Nomination
Daily Operation / System Management
MAC, MEDC, MRC
(per infrastructure)
MPGTG
Before
System Operation
Commercial Margins
Imbalances
Penalties
Cap. Calculation
Cap. Programming
Congestion Mgmt.
Assignment of Capacity Rights
MPAI
MPGTG
Product definition
Auction rules
Cap. Allocation
Invoicing
Credit Risk Mgmt.
Combines former contents with nomination rules
Includes provisions on Secondary Market
After
NOTE: MPAI (Infrastructure’s Access Procedures Manual) – New regulatory document, encompasses former 8 documents governing cap. calculation (MEDC), cap. allocation (MAC), congestion management (MRC) and Strategic Reserves storages

6. New Regulatory Framework
Index
Main changes
New Regulatory Framework
Capacity Managment
Next Steps

7. A major change in the capacity management chain
Until 30th September, 2013
Commercial Mgmt. (TSO)
Available capacity is published
Programming/ Nominating
‘Allocation’
Utilization
Payment due for used capacity
Global System Manager
Before Gas Day
Gas Day
After Gas Day
As from 1st October, 2013
Commercial Mgmt. (TSO)
Available Products
Capacity allocation (auctions)
Capacity contracting
Payment due for contracted capacity
Shippers Forecasts/ Nomination
Utilization
Global System Manager

8. Yearly Quarterly Monthly Daily x
Capacity Management
Standard Products offered
Products \ Maturity
Yearly
Quarterly
Monthly
Daily
(week-ahead)
(day-ahead)
Storage of LNG x
Underground storage
Physical IPs (*)
Regasification at LNG terminal
Backhaul at LNG terminal
UGS injection
UGS withdrawal
(*) only for unbundled capacity at Valença do Minho and Campo Maior (outside the VIP)

9. Calendar for 2013 and beyond
Capacity Management
Calendar for 2013 and beyond
(VIP)
Y and Q Capacity Auctions
(VIP)
M and D
Cap. Allocation (FCFS)
Yearly
Capacity Products *
Yearly Consumpt Forecast
Quarterly
Capacity Products *
Monthly
Capacity Products *
Y and M Utilization Forecast
Rolling Day-Ahead Capacity Auctions
2013/
2014
30.Sep
30.Sep 2014
Jun/Jul
As from Jul
31.Jul-06.Sep
3.Sep
06–13.Sep
Sep
23.Sep
Daily
Capacity
(Re)-Nomination
Governing
Reg.
MPAI
MPGTG
2014/ …
30.Sep
30.Sep …
Mar
Jun
As from Sep
3.Sep
Sep
Yearly Capacity Auctions
Quarterly Capacity Auctions
Rolling Monthly Capacity Auctions
Yearly
Consumption Forecast
Yearly and Monthly Utilization
Forecast
Rolling Day-Ahead Capacity Auctions
* This activity includes the publication of available capacity, the auction and the final allocation of capacity to shippers

10. Concerned Entity / Means
Capacity Management
Changes on Shipper / TSO interaction
Activity
Publication of Available Capacity
Capacity Bidding
Annual Consumption Forecast
Announcement of Congestion
Preliminary Auction Results
Registration of Allocated Capacity
Utilization Forecast/ Nomination
Concerned Entity / Means
TSO REN’s Platform
Shipper / Form ( to OMIP)
Shipper / Form ( to GSM)
REN via OMIP / OMIPlus
REN via OMIP / OMIClear

11. New Regulatory Framework
Index
Main changes
New Regulatory Framework
Capacity Managment
Next Steps

12. Provisions to complete the regulatory framework
Next steps
Provisions to complete the regulatory framework
Revision of general terms of capacity contracts
Revision of the main operational procedures’ manual – MPGTG
Definition and implementation of CMP rules
Further harmonization (Gas Day, nomination schedules, etc.)

13. Thank you for your attention!
24th IG meeting S-GRI, Madrid
September 23, 2013