1. EUROPEAN COMMISSION Transparency – Proposal to amend chapter 3 of the Annex of Regulation 1775/2005 EUROPEAN COMMISSION H. Hick, DG TREN C 2 NW GRI 5th stakeholder Group Meeting 9 June 2009, Paris

2. | 2XVI Madrid Forum Content. Current transparency guidelines » what do they cover? » need to amend them. EC’s draft proposal. Next steps

3. | 3XVI Madrid Forum Current transparency guidelines. already cover several good elements as to the content (what needs to be published) » detailed and comprehensive description of different services offered and their charges; » different types of transportation contracts; » provisions on capacity allocation » …. has specific definition of relevant points » entry points and most important exit points » all points connecting different networks of TSOs » all points connecting network of TSO with LNG terminal » …. elements of time schedule according to which the information must be published » capacity situation down to daily periods » available capacities: 18 months ahead » daily updates of availability of short term services » …

4. | 4XVI Madrid Forum Follow-up XV Madrid Forum. GIE-transparency workshop 31 March. DG TREN drafted new transparency guidelines which » are at this stage draft proposal by DG TREN services » do not bind the Commission

5. | 5XVI Madrid Forum New draft guidelines - overview. TSOs will have to provide » more detailed real-time and historic information on availability and use of capacities gas flows » more detailed information on specific issues and services: balancing gas quality conversion capacities Secondary market » on an internet site accessible to the public » in both the national language and English

6. | 6XVI Madrid Forum Structure of the draft proposed guidelines 3.1. Definition of the technical information necessary for network users to gain effective access to the system 3.1.1 Form of publication 3.1.2 Content of publication 3.2. Definition of all relevant points for transparency requirements 3.3. Information to be published at all relevant points and the time schedule according to which this information should be published

7. | 7XVI Madrid Forum New elements on form of publication. on a website accessible to the public, free of charge and without any need to register or otherwise sign on with the TSO;. on a regular/rolling basis; » the frequency shall be according to the changes that take place and the duration of the service;. in a user-friendly standardised manner;. in a meaningful, quantifiable clear, easily accessible way and on a non-discriminatory basis, in a timely, concise and correct manner;. in downloadable and raw data format;. in consistent units;. to all interested parties, including potential users, at the same time and in the same manner;. in the official language(s) of the Member State and in English;. via one single interface per entry/exit point

8. | 8XVI Madrid Forum New elements on content of publication. for all relevant points » a full specification of the gas quality parameters and; » information on pressure requirements;. clear information on the circumstances that can lead to liability of network users, the potential risks for network users and the impact on their contracted gas flows at least with respect to: » gas pressure requirements » treatment of gas that is not within the specified parameters ("off spec gas") » emergency mechanisms (such as measures for disconnection of customer groups in case of capacity scarcity in case of an emergency or other. any agreements and procedures agreed upon by TSOs at interconnection points, especially: » those describing how to facilitate interoperability of the grid; » agreements on nomination and matching procedures; and » other agreements that set out provisions in relation to gas flow allocations and cross system balancing, including the methods used

9. | 9XVI Madrid Forum New elements on relevant points. all entry and exit points to and from a transmission network operated by a TSO. all entry and exit points connecting balancing zones of one or more TSOs;. also storage and production facilities;. also essential points which are physically or contractually congested and which are likely to experience physical congestion;

10. | 10XVI Madrid Forum Services and flows. all services provided, including ancillary services » the nominated firm and interruptible capacity in both directions » commercially available capacity for all types of capacity offered to the market; » planned and unplanned interruptions to flows, the reason for interruption and the circumstances under which flows will be interrupted. updates in real time. information shall correspond to the smallest period in which the capacity is offered or balance is settled » daily or hourly periods on a numerical basis. historical information » for the past five years on a rolling basis and on a numerical basis gas flows interruptions

11. | 11XVI Madrid Forum Interruptible capacity. to each potential user: » sufficient and daily updated information on the probability of interruption for all interruptible capacity;. to each potential user requesting information on interruptible bookings: » the probability of interruption for the booking period requested;. to each capacity user having booked interruptible capacity: » information on any significant change in the probability of interruption during the remainder of the booking period

12. | 12XVI Madrid Forum Linepack. where linepack is offered for TPA or where TSOs engage in traded markets: TSOs shall publish daily aggregate linepack forecasts for the end of each relevant gas day and, if applicable, the linepack available to system users

13. | 13XVI Madrid Forum Tariffs. at least the following elements of the tariff calculation: » consideration of fuel gas; » incentives for new infrastructure; and » where applicable, the auction methodology and the criteria applied for and results of benchmarking

14. | 14XVI Madrid Forum Long term forecasts. on an annual basis over all years where capacity is contracted down to the first year where capacity is available for booking and at least for the next 10 years. publication shall reflect the period for which capacity is offered to the market

15. | 15XVI Madrid Forum Secondary market transparency. Aggregated amounts of capacities » On a daily basis the aggregated amounts of capacities sold » per interconnection point » per type of capacity, » type of sale, » the size and duration of capacity usage rights. Harmonised conditions of capacity transactions » a description of standardised products which can be sold on the secondary market; » lead time and execution time for the implementation/acceptation/registration of secondary trades; » the notification by the seller about name of seller and buyer and capacity specifications as outlined in 3.3.(9)

16. | 16XVI Madrid Forum XVI Madrid Forum 16. The Forum welcomes the Commission's draft proposal of new transparency guidelines.….. 17. … stakeholders are invited to submit to the Commission their views on the draft proposal by no later than the end of June. The Commission will then consider how to take the various remarks into account in the final proposal…. The Commission plans to take the draft transparency guidelines forward in view of the adoption later this year. 19. The Forum congratulates the Northwest regional initiative ….. on the progress realised within the GRI NW transparency project. …. encourages TSOs in the region to bring forward proposals for further transparency. The Forum also acknowledges the importance of the agreement, in the NW region, for implementing enhanced transparency for gas storage by the end of the year, thus addressing security of supply concerns. The Forum asks other Storage System Operators to join this initiative to implement the transparency requirements of the 3rd package.

17. | 17XVI Madrid Forum Way forward. End May Madrid Forum - consultation on the proposal continues. 1 st /2 nd week of June Submission of the Impact Assessment to the Impact Assessment Board. Beginning-Mid July Meeting of the IAB and Inter Service Consultation. August Adoption of the proposal. September Start of the Comitology process ?