Framework Guideline ACER final CAM Framework Guideline published 3 rd Aug ENTSOG original Code delivery date 27 th Jan 12 New Commission invitation to ENTSOG to deliver a CAM Code now extended to 9 th March 12
Changes from Previous Version The relevant clauses shall be amended within nine months after entry into force of the network code(s) The standardisation is based on a daily capacity product’s duration from 5:00 to 5:00 UTC/GMT, or any other time period harmonised across the EU as defined by European Network of Transmission System Operators for Gas At least 10 percent of the available firm capacity at each interconnection point shall be set aside for firm capacity services with a duration of less than one quarter These rules on mandatory bundling also apply, to the extent that they are relevant, to secondary capacity markets Sunset Clause revised: Parties to agree, NRAs to mediate Default rule in case users to not reach agreements Sanctions allowed by NRAs to enforce agreements Commission Guidelines for tariff methodologies related to cross-border trade of natural gas or in the Framework Guidelines for network codes on rules regarding harmonised transmission tariff structures Web-based platform for primary capacity allocation and secondary capacity trading Timetable for the implementation of a single EU-wide platform required
European Network Code Development Process Work programme ENTSOAgency Framework guidelines Commission Preparation of draft Network Code Commission Agency Comitology Legally binding Network Code Commission Stakeholder workshops Consultation Stakeholder Consultation & workshops DECC GB Code Change process ENTSOEU CommissionACER (ERGEG/CEER) Stakeholder Consultation CAM Code Current Phase
CAM Consultation Capacity Allocation Mechanism (CAM) Entsog consultation on CAM draft EU code received 56 responses GB well represented @10 respondents + Associations Next Steps: Publish analysis of responses – now completed 26 th Sept Continue stakeholder dialogue on key aspects Sunset clause ‘default’ meeting 6 th Oct (Brussels) SJWS Stakeholder meeting planned for 20 th Oct (Brussels) The final EU code is still expected to be published in Jan 2012 Commission extended Code deadline until 9 th March ENTSOG may use additional timeline to carry out a short re-consultation period?
7 Key CAM Documents Project Plan Launch Document All stakeholder (SJWS) meeting material Draft CAM network code & supporting documents Consultation responses & Analysis report Available from ENTSOG @ http://www.entsog.eu/publications/index_g_cam.html http://www.entsog.eu/publications/index_g_cam.html
8 ENTSOG Draft CAM Network Code Overview In principle similar to GB Entry arrangements however: Will have impacts to current arrangements Guidelines applicable to Interconnection Points only
GB Regime Governance 3 rd package Code development / changes Commitology timelines may not be appropriate for changes Lighter change process needs consideration Handbook approach? UNC Code change process T&C – Code amendment timeline 9 months Implementation? Different rules for IPs UNC to differentiate between IPs / Non IPs? Separate IP Code?
GB Regime Sunset Clause Within 5 years of the Code coming into force Users need to agree split of contracts either side of the IP to combine (bundle) capacity ENTSOG to provide a default rule if capacity is not bundled Does this effect capacity bookings (as already carried out via transparent auction process)?
GB Regime Mandatory Bundling Primary and secondary capacity via bundled products No opportunity to book / trade at flange Currently capacity sold in aggregate at an ASEP Bundling applicable to IPs only (Bacton) Current bookings out to 2025 Licence Baselines Implications to interconnector operators Art.22 exemptions
GB Regime Enduring Exit Need changes to regime to incorporate auctions Auction Design Different to GB Entry auction Available capacity only no incremental (note: CEER Workplan 2012) Differing Stakeholders views on key draft Code principles: LT and MT products Volume based auction single round, ascending clock multi round, others
ENTSOG Draft CAM Network Code Standard Products Concept similar to Entry but differences in the detail design For LT - Users favoured Quarterly
GB Regime Interruptible No obligation to bundle Only align interruptible services Min obligation for day ahead (where firm sold out) CMP v CAM interaction - within day nom
GB Regime Incentive Regime Buy back on a bundled capacity product? Sale of non-obligated with a bundled product? Interoperability (CET) 05:00 – 05:00 gas day alignment CMP Commission undertook consultation during summer [New CMP document to be issued soon] - tbc [Restriction of renom rights not mandatory] – tbc [Oversell / Buy backs & incentives] - tbc
GB Regime Other 3 rd Package Code Interaction Tariffs Framework Guideline – then straight to commotology Code development step not included Implementation Timelines Code changes IT systems timeline Joint platform(s) / Separate
Summary Key Summary Points GB engagement via forums Process still open Potential changes to GB regime at IPs Multiple Code development & interaction GB engagement & support in EU Code development welcomed Further EU engagement needed to make stakeholders views understood More to come!