Download - European Workgroup
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European Workgroup
European Workgroup
2nd October 2014
1. General Update
2
Code Status Update
Code Current Status Implementation date
Congestion Management (CMP)
Implemented 1st October 2013 (Fixed)
Capacity Allocation Mechanism (CAM)
CAM approved for EU wide implementation at relevant EU IPs. 1st November 2015 (Fixed)
Gas Balancing (BAL)
BAL approved for EU wide implementation 26th March 2014 (Commission Regulation (EU) No 312/2014 establishing a Network Code on Gas Balancing of Transmission Networks.)
1st Oct 2015 (Fixed)
Interoperability & Data Exchange (INT)
In comitology, first meeting held 10th July 2014, next meeting scheduled for 3rd and 4th November 2014.
1st April 2016 compliance date
Tariffs Under development. Code to be submitted 31st December 2014. Estimated earliest mid January 2017. Applicable from October 2017.
Incremental Capacity
Under development. Incremental Capacity to be introduced via combination of new articles in CAM Network Code and via Tariffs Network Code. Code amendment to be submitted 31st December 2014.
Applicable from March 2017
Gas Codes Timeline
Status of Development of European Gas Network Codes
Future dates are subject to change KEY
Dates shown in italics are best approximations based on current understanding. Activities undertaken by ACER
It has been necessary to 'round' some dates for the benefits of the diagram Activities undertaken by ENTSOG
Activities undertaken by European Commission
TODAY
Mar
Ap
rM
ayJu
nJu
lA
ug
Sep Oct
No
vD
ecJa
nF
eb
Mar
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ayJu
nJu
lA
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Sep Oct
No
vD
ecJa
nF
ebM
arA
pr
May
Jun
Jul
Au
gS
ep Oct
No
vD
ecJa
nF
ebM
arA
pr
May
Jun
Jul
Au
gS
ep Oct
No
vD
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nF
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May
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ACER Review
Go
Liv
e
Go
Liv
e
ENTSOG Drafting
ACER Review
Finalise drafting
Comitology(duration unknown)
Comitology
Initial drafting
Co
nsu
ltatio
n
Finalise drafting
Comitology Phase
ACER Develops Framework
Guidelines on Tariffs
FG Extension
20162015
Go
Liv
e
2014
Com
plia
nce
ACER Review
ENTSOG Drafting
Initial draftingConsultatio
n
Comitology
2012
ACER Review
ENTSOG
revision of Code
Initial drafti
ng
Go
Liv
e
Comitology
Network Code / Guideline
Congestion Management Principles (CMP)
Next Step
Implementation of CMP obligations for 1st October
2013
Comitology
2013
Stakeholder Workgroups
ACER Develops
Framework Guidelines on Interoperability
Interoperability & Data Exchange
Tariffs
Balancing
ACER Review
Post-Comitology Capacity Allocation Mechanisms (CAM)
ENTSOG Drafting
Consultation
Finalise drafting
Comitology
Incremental Stakeholder Workgroups
ACER Develops Framework
Guidelines on Tariffs
FG Extension
ENTSOG Drafting
ACER ReviewComitology
(duration unknown)Initial drafting
Co
nsu
ltatio
n
Finalise drafting
Road Map
Notes: 1) Long term capacity auctions may need to be delivered in conjunction with short term auctions
Today
2014
2015
2016
2017
2018
Surrender process (UNC Mod 0449)
LTUIOLI & enhanced provision of data to ENSOG platform
Gas Day (enabler)
Short term auctions (within day + day ahead +monthly ) capacity allocation arrangements at IPs
Other EU legislation – REMIT
Data exchange, allocations
Long term capacity auctions from Mar 16 (effective 1st Oct 16)
Gas quality data publication
Short term UIOLI
Incremental capacity auctions at IPs (TBC)
Implementation of tariff arrangements at IPs (2017)
CMP CAM Interoperability Tariffs Other
Phase 1bBy Oct 2014
Phase 1aFrom 1st Oct 2013
Phase 2aeither 1st Oct or 1st Nov
Phase 2b on or before 1st Nov
Phase 3
Phase 4
Balancing
Cross border nominations etc.
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Action from September 2014 EUWG
Action : EU0904: Planned UK Link Downtime
and the New Nominations Process at IPs -
National Grid NTS to review alignment with the
closing times of other TSOs, the OCM and
other markets and provide more details at the
next meeting. (National Grid NTS, PB)
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Responses
Adjacent Transporter system availability
IUK – 24/7
BBL – 24/7
BGE(UK) – TBC
Trading markets availability
OCM (ICE Endex) – from 12:00 midday Day-Ahead until 03:35am
on the gas day. End time will move to 02:35am from 1 Oct 2015
OTC (CME Group) - Sunday 11:00 PM – 10:15 PM Friday, with a
45-minute maintenance break each day beginning at 10:15PM
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Gemini Housekeeping Window – Next Steps GB Stakeholders initial view is that current UK Link
Downtime meets requirements of Interoperability Code
Biggest impact is on D-1 however there remains considerable opportunity to address balancing position within-day
On the day impact is minimal and outside core business hours (last NDM forecast is midnight)
EU Workgroup suggested wider consultation should be considered
Formal consultation [November] is being considered subject to further discussions with adjacent TSOs
2. EU Code Updates
EU Tariffs Code Update
EU Tariff Code Update
Areas for revision to presented at Stakeholder refinement workshop 24th September
Transmission Services Definition
Publication Before Annual Auctions
Payable Price
Multipliers
Benchmarking
One-off Capacity Reset
Remainder of the 300+ issues arising from stakeholder consultation to be discussed within ENTSOG until end October.
Transmission Services
Current draft: ‘transmission services’ means the regulated services provided by the transmission system operator to all network users within the entry-exit system for the purpose of transmission
The current “Dedicated Services” definition is more contentious but could be something like: ‘dedicated services’ means the regulated services, the revenue from which forms a part of the allowed revenue, other than transmission services provided by the transmission system operator to specific network users, or infrastructure operators, or at specific entry or exit points
There is no proposal at present to include an exhaustive list of “dedicated services” – instead clear criteria shall be established
ENTSOG shall have a discussion if short-haul should have its own article – i.e. in setting tariffs the TSO/NRA “should consider the benefits of avoiding inefficient by-pass”.
Payable Price
ENTSOG shall be proposing a fixed price option at IPs.
The current thinking is as follows:
Floating price tariffs will be the default option
No obligation to provide a fixed price mechanism but the TSO will have the option to make this available (subject to consultation and NRA approval).
Proposal for fixed price mechanism is:
(allocated reserve price +premium) *indexation
The calculation of the premium and the index is to be consulted upon and agreed by the NRA.
Premium can be 0 or indexation can be 1
Current draft still allows use of commodity charge at IPs for revenue recovery if fixed price used.
One-off Capacity Reset
ENTSOG does not plan to include a reset in the draft Code
ENTSOG Board has agreed for paper to be produced on counter-arguments for a reset
Transfer of risk and cost to the TSO and market
Greater impact on parties unable to move short term capacity bookings
Additional tariff instability immediately post implementation
Need to further consider with other Codes, such as CMP
Can code elaborate on other potential mitigation measures?
EU Incremental Amendment Update
EU Incremental Amendment
Stakeholder refinement workshop 23th September.
Main issues of concern were primarily on the following:
The clarity and preciseness of the incremental offer process
Shippers want greater frequency for demand assessment (i.e. > 2 years)
The conditions and parameters of open season procedures
Some concern that defaults to OS is criteria met on one section of incremental route.
How parameters would influence the f-factor
How does this work with auction premium to pass test
How the tariff framework impacts the incremental process
Fixed v floating
Incremental Amendment
Predictability and certainty on tariffs is key concern for shippers with respect to booking long-term capacity to trigger incremental capacity
Incremental Proposal will reflect the principles defined for the TAR NC on fixed vs. floating tariffs
ENTSOG keeps Art 26(2) of CAM NC also in the refined Incremental Proposal
The payable price determined in a capacity auction can be either a fixed price or a variable price or be subject to other arrangements provided for in the applicable regulatory regime. The fixed price shall consist of the applicable tariff at the time of the auction plus the auction premium. The variable price shall consist of the applicable tariff at the time when the capacity can be used plus the auction premium. The arrangements can be different for the capacities in a bundled product on either side of an interconnection point.
Art 26.2 of NC CAM
EU Interoperability and Data Exchange Update
Interoperability and Data Exchange:Common Units
EU 0901: National Grid NTS legal view on whether Alternative 2 (rounding the 0.999 conversion factor to 2DPs) would be compliant
Neither the Interoperability Code nor ISO 13443 expressly require the use of a particular number of DPs, however:
Use of 2 DPs is not consistent with the ISO standard in which all conversion factors are quoted to 4 DPs
Quoting the factor at 2 DPs effectively disregards that there is a difference between energy figures quoted at the two sets of reference conditions
NG NTS cannot therefore adopt a conversion factor which treats energy figures quoted by reference to 15/15 reference conditions as being equal to figures quoted by reference to 0/25 reference conditions
Interoperability and Data Exchange:Common Units
National Grid NTS remains open to consider any other options but otherwise will progress one of the following:
1) Conversion of shipper IP allocations from 0/25 to 15/15 in Gemini
2) Conversion of IP shipper capacities booked on PRISMA and confirmed nominations (post matching) in Gemini
3) Add a ‘balancing allocation’ to IP shippers’ accounts in Gemini which represents the difference between its 0/25 allocation and the equivalent value at 15/15 (variation on option 1)
EU Gas Quality HarmonisationUpdate on the CEN Standard
Introduction
CEN issued its draft gas quality standard to national standardising bodies in May 2014
BSI’s UK consultation closed on 31st August 2014
BSI committees GSE/4 and GSE/33 have now reviewed the comments received and submitted the UK response to CEN
This presentation summarises the UK position and next steps for this standard
CEN Standard: Headlines of the UK Response
BSI has voted to reject the standard as currently drafted and has applied to CEN for a ‘Special National Condition’ (SNC)
Should the standard be adopted, the SNC would insert a foreword to qualify its adoption as British standard
The UK’s technical case for the SNC in summary is:
The gas quality required for safe operation of UK appliances was determined many years ago
For the future, the UK requires a gas quality that ensures their continuing safe operation
Broadening the Wobbe Index to the parameters proposed would undermine the operations of some industrial and commercial gas consumers
CEN Standard:Reasons for BSI’s Negative Vote
The CEN working group should be allowed additional time to take account of the EC’s conclusions document from the 1st July 2014 workshop
Consideration of a narrower Wobbe Index range
Application of the standard
Implementation leadtime
Supporting work is not sufficiently conclusive to agree limits at this stage
A further draft should be issued for public enquiry once comments on the current draft have been considered
CEN Standard:Summary of UK Comments on Parameters
Parameter UK Comments
Wobbe Index • A range of 46.44 – 54.00 MJ/m3 is not acceptable to the UK.
• There is insufficient evidence that this range provides for either the optimum balance of interests or that it would result in no safety issues.
• Gas turbine operators have expressed concern about combustion stability.
• Minor editorial comments have also been made on the ‘qualifying wording’ (clause 5).
Oxygen • Text amendment proposed to recognise that a higher limit may be permitted at an entry point if gas will not flow to offtakes sensitive to oxygen content.
• Text amendment proposed to include electricity generation plan as a type of offtake sensitive to oxygen content.
• Further discussion is required on oxygen limits
CEN Standard:Summary of UK Comments on Parameters
Parameter UK Comments
Carbon Dioxide • Text amendment proposed to recognise that a higher limit may be permitted at an entry point if gas will not flow to offtakes sensitive to CO2 content.
• Text amendment proposed to include electricity generation plan as a type of offtake sensitive to CO2 content.
• Concern raised by power plant operators that increased levels of CO2 above 2.5% may cause increased costs of compliance with EU ETS
Dewpoints • Concern raised by power plant operators that the presence of higher hydrocarbons may not be accurately recorded by measurement systems
• Recommended to reconsider dewpoint limits
CEN Standard:Summary of UK Comments on Parameters
Parameter UK Comments
Methane Number • Further investigation required to ensure that methane number of 65 is acceptable to all manufacturers of appliances which incorporate motors
Contaminants • Further guidance required, alternative text proposed aligned to GS(M)R definition
Hydrogen • Concern at the lack of a limit on hydrogen expressed by appliance manufacturers and operators of gas turbines.
• Recommended to include hydrogen in the table of parameters, recognising that until or unless there is a commonly agreed EU limit, national arrangements shall apply.
CEN Standard – Next Steps
National standardising bodies of Member States have until 8th October 2014 to submit votes and comments
CEN working group meets in November to review the comments
3. UNC Modification Plans
Phase 2 UNC ModificationsPotential Timescales
EU Network Code Area of change Panel Submission Workgroup Development
UNC Consultation
Gas Balancing (BAL) Information Provision March 2014 2 Months July 2014
SMP Buy & Sell April 2014 1 Month July 2014
Nomination Process at IP’s April 2014 6 - 9 Months Nov 2014
Capacity Allocation (CAM)
CAM / CMP Compliant Capacity Auctions
May 2014 6 - 9 Months Q4 - 2014
Interoperability & Data Exchange (INT)
OBAs / allocations August 2014 6 Months Q1 - 2015
Interconnection Agreements/Contract Changes(facilitating Modification )
Q1 - 2015 3 Months Q2 - 2015
Data Exchange Q1 - 2015 3 Months Q2 - 2015
Units (reference conditions) Q4 - 2014 3 months Q1 - 2015
4. System Developments
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Phase 2 Delivery Plan
May Jun Jul AugJan Feb Mar AprSep Oct Nov Dec
2014
May Jun Jul AugJan Feb Mar Apr
Requirements Design TestBuild
Sep
Requirements Design TestBuild
De
liv
ery
pla
n
NG IS
Xoserve
2015
Imp
Imp
Implementation date (not yet approved): 6th September 2015
(shared at the UK Link Committee meeting on 11th September 2014)
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Overview of Key System Delivery Stages
Requirements
Business process definition, screen prototypes
Design
Technical design, security
Build
Write system code, test individual components
Testing
Supplier, UAT, external parties, performance, interface
We are working with our Service Providers (Xoserve and NGIS) to determine planned dates for the testing phase. We would like to provide you with more detail on this at the November Workgroup
Implementation
Dress rehearsals, implementation, support
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Business and Systems Delivery Team
Contact details
Chris Gumbley – EU Programme Delivery Manager
Bill Goode - Gemini Implementation Lead
John McNamara – iGMS & Consequential Change Implementation Lead
Team email: [email protected]
5. Draft Modifications
6. AOB
Bridge to 2025 and Gas Target Model
ACER Conclusions Paper: 'Energy Regulation: A Bridge to 2025'. Published 23 September.
ACER Gas Target Model update: Expected to be published Autumn 2014
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REMIT
Comitology meeting set for 3 October
(expected to be completed in only one meeting).
Expected to enter into force by end of 2014
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REMIT WORKSHOP - 24 Oct
24 Oct, 10:00 – 12:00 at ENA offices
Discussion topics:
NG / Xoserve proposed solution to facilitate shippers reporting of secondary capacity trades
The future of the NG inside information notifications website https://www.remit.gb.net/
EIC codes – facilitating GB only shippers access to EICs
Register by email: [email protected]
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