1. GSE comments on the amendment of GGPSSO as proposed by ERGEG Madrid Forum 22 March 2011

2. GSE worked with ERGEG on CAM/CMP since 2008 ...
2005: GGPSSO adopted by ERGEG after consultation with stakeholders to lay down a framework for storage access and services
2008/2009: ERGEGs Status Review of CAM/CMP
ERGEG, GSE, EFET and Eurogas workshop and consultations
July 2010: ERGEG launched a public consultation on
Assessment of CAM and CMP
Proposal of GGPSSO amendments
September 2010: ERGEG Workshop in Brussels
February 2011: ERGEG published the final new guidelines
March 2011: 3rd Energy Package comes into force
All along the process, GSE has always been providing written comments and feedback, including specific text proposals

3. ... but was surprised by the conclusion
GSE welcomes ERGEG’s (ACER’s):
efforts to help create an integrated European energy market,
recognition of the validity of some GSE comments.
According to ERGEG, the GGPSSO amendment is a “supplement to the existing EU law (3rd package)” → however it is beyond ERGEG’s powers to issue supplementary laws.
If, despite this, guidelines are issued, GSE regrets to note that:
most GSE comments, based on real-life experience of SSOs, have not been reflected in the text, with little or no explanation by ERGEG;
ERGEG proposals are based on a 2008/2009 Status Review which does not reflect the current situation.
Given this, GSE sees a need for clarification and additional reformulation of the guidelines

4. GSE made specific proposals for each of the guidelines but most of them have not been taken into account
For instance, despite GSE’s comments, ERGEG still :
deems auctions as the only preferred CAM
but there are other effective allocation methods in place that offer non-discrimination and transparency
grants additional powers to NRAs thus overstepping its competences
e.g. ex-ante review of allocation
addresses some of the provisions to other market participants than SSOs
e.g. „working gas transfer…price should be ideally market based“
fails to recognise that fulfillment of some guidelines requires cooperation of other entities
e.g. combined products

5. The 2010 GSE Survey shows that progress was made in CAM ...
The GSE survey showed that popularity of auctions is growing sharply in particular for planned storage capacity, while the use of FComeFS is decreasing
Other: Open seasons with pro-rata allocation

6. ... and also in CMP
Design of CMPs reflect a high rate of market consultation (90%)
Secondary capacity trading implemented
electronic platforms, bulletin boards and OTC trading being the most common
Increase in secondary capacity trading involving more than one SSO
Secondary market tools used by SSOs
CMP used (% of WGV)
N.B. Please note that the definition of secondary market categories was slightly modified for the 2010 survey.

7. GGPSSO: Way Forward
ERGEG should wait for the transposition AND implementation of the Third Energy Package to be completed.
Any GGPSSO amendment should foresee further public consultation and stakeholder dialogue to arrive at a version that can be endorsed by the industry.
ERGEG should ensure visibility and predictability of the ongoing and envisaged process(es) as well as transparency on the evaluation of stakeholder input.
GSE will be happy to further discuss its comments with ERGEG in order to improve the development of GGPSSOs.

8. Progress has also been made on transparency …
In line with the current requirements, SSOs publish a wide range of useful data (according to GSE’s survey: all but one also in English).
SSOs contribute also on a voluntary basis to the GSE Aggregated Gas Storage Inventory initiative, which provides added value to the market. The AGSI platform is being continuously improved.

9. THANK YOU FOR YOUR ATTENTION