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European Developments: Capacity Transmission Workgroup 6th October 2011.

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Presentation on theme: "European Developments: Capacity Transmission Workgroup 6th October 2011."— Presentation transcript:

1 European Developments: Capacity Transmission Workgroup 6th October 2011

2 Content  Provides an overview of:  ACER Framework Guidelines  ENTSOG CAM Update  Potential key GB impacts  Summary & GB Stakeholder involvement

3 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

4 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

5 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

6 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 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 @ 

8 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

9 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?

10 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)?

11 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

12 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

13 ENTSOG Draft CAM Network Code  Standard Products  Concept similar to Entry but differences in the detail design For LT - Users favoured Quarterly

14 ENTSOG CAM Consultation Auction - Products

15 ENTSOG CAM Consultation Auction - Design

16 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

17 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

18 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

19 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!

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