emergency plan natural gas 2012

7/29/2019 Emergency Plan Natural Gas 2012

http://slidepdf.com/reader/full/emergency-plan-natural-gas-2012 1/9

EMERGENCY PLAN FOR SECURITY OF SUPPLY OF NATURAL GAS

_______________________________________________________________

THE NETHERLANDS

Based on Regulation (EU) No 994/2010 of the European Parliament and of theCouncil of 20 October 2010 concerning measures to safeguard security of gas

supply and repealing Council Directive 2004/67/EC

Version 2.0 – 3 December 2012

Energy Market DirectorateMinistry of Economic Affairs

The Netherlands



Introduction

Regulation (EU) No 994/2010 of the European Parliament and of the Council of 20October 2010 concerning measures to safeguard security of gas supply and repealingCouncil Directive 2004/67/EC (hereinafter ‘the Regulation’) stipulates, among other

things, that Member States must draw up an emergency plan detailing the measures tobe taken to deal with an unexpected disruption to the gas supply where it is not possible

to do so using the more usual measures referred to in the preventive action plan.

This plan is the emergency plan for the Netherlands, a country which occupies a uniqueposition within the European Union when it comes to natural gas. Within the EuropeanUnion, the Netherlands is the largest net exporter of natural gas and is expected toremain a net exporter of natural gas until at least 2025. This situation also affects (the

contents of) this emergency plan. Given its sizeable domestic production and the option ithas of making use of this should imports cease, the Netherlands is relatively immune toan unexpected disruption to the gas supply in (north-west) Europe. This is furtherreinforced by the fact that Dutch gas production is not dependent on a single source. TheGroningen field, the largest source of Dutch natural gas, has over 20 independentlyoperating production sites, in addition to which gas is also extracted from 235 ‘small’

fields.

Consequently, the emergency plan for the Netherlands can be and is relatively simple. Asdescribed below, there is, of course, a crisis organisation, which is activated in the event

of serious disruption to the gas supply. However, given the situation in the Netherlandswith regard to natural gas, there is no need to be able to fall back on non market basedmeasures, and domestic production may and can be relied upon to absorb any gassupply problems.

The emergency plan for the Netherlands is developed below, using as its starting pointthe subjects listed in Article 10(1) of the Regulation for inclusion in the emergency plan.This version of the emergency plan will be submitted to the Dutch gas sector, the

surrounding Member States and the European Commission. Their comments will be usedto draw up the definitive plan, which will be submitted to the European Commission on 3December 2012.

1. Crisis levels (Article 10(1)(a))In general, crisis management in the Netherlands involves four distinct phases, whichcorrespond to the timeline of the (impending) crisis:

1. Normal phase: preparing for a crisis by keeping scenarios up to date and throughcrisis awareness, education, training and exercises.

2. Alert phase: there are signs that a crisis is imminent or that a serious incident needsto be addressed. From the alert phase, it is possible to stand down to the normalphase or to escalate to the crisis phase.

3. Crisis phase: addressing and managing the crisis.4. Post-crisis phase: standing down crisis organisation, evaluating and adjusting

scenarios.

The normal phase is upgraded either to the alert phase or the crisis phase, which isknown as escalation. There are two types of escalation, namely informative escalation

and organisational escalation.



Informative escalation

Escalation from ‘normal’ to ‘alert’ is known as informative escalation. This type of escalation is necessary when a heightened state of alert is needed with regard to thesituation and it is essential to be well informed and to be able to exchange information

quickly and appropriately. The normal organisational structure continues to be used onthe basis of the usual responsibilities. Such escalation is designed to optimise internal

and external information exchange, also with a view to preparing for possible escalationto the crisis phase.

Organisational escalationThis type of escalation is necessary when the day to day organisation cannot anticipatethe situation that has occurred or is expected to occur. Organisational escalation makes it

possible to coordinate and expedite internal procedures for information exchange,decision-making and taking action.

2. Role and responsibilities of natural gas undertakings and of industrial gascustomers (Article 10(1)(b))In so far as any roles and responsibilities in times of crisis have been defined, they relate

only to distribution and transmission system operators. Under Article 51 of the Gas Law,these network system operators are required to draw up an emergency response planevery 5 years. Article 20a of the Ministerial Order ‘Quality aspects of management of electricity and gas networks’ (Government Gazette (Staatscourant) 2004, 253) lays down

more detailed rules with regard to these emergency response plans. The requirementswith regard to emergency response plans relate primarily to procedural requirements inthe event of a crisis. A rigorous procedure must have been followed to develop the crisismanagement system, and it must be subject to adequate organisational guarantees. The

precise content is the responsibility of the network system operator itself.

3. Role and responsibilities of the competent authorities and of the otherbodies (Article 10(1)(c))

The Minister for Economic Affairs (EZ) is the competent authority within the meaning of Article 3(2) of the Regulation. The Minister for Economic Affairs also has politicalresponsibility for energy supply, while the network system operators have operational

responsibility. This division of responsibilities means that the Minister is responsible fordetermining the framework in all phases of crisis management. Within the frameworkset, the network system operators do what is expected of them. An example of this isthat the Minister must indicate whether certain groups of customers or sectors are to be

given priority access to energy supply (determining the framework in the responsephase). Network system operators then take this into account in their interruption plans.In other words, the Minister has only very limited direct control over the gas andelectricity sector. Ultimately, it are the national transmission system operator (GTS forgas) and the distribution system operators that actually have the authority to dosomething.

Another aspect of political responsibility is that the Minister must, at all times, be able tobe accountable for his policy and be able to inform the parliament and the general publicof the extent, cause and consequences of a crisis. This implies that he must have anextensive and up-to-date network of crisis managers in the sector in order to enable

efficient information exchange between the sector and the Minister.

A clear distribution of responsibilities also entails resolving a crisis at the lowest level

possible (at municipal level for a municipal crisis, at provincial level for a provincial crisisand at national level for a nationwide crisis) and means that other ministries areresponsible for their own policy areas (i.e. the Ministry of Safety and Justice for law andorder and security, the Ministry of Health, Welfare and Sport for public health, etc.).

Cascading dependencies can lead to a crisis in the energy sector spreading to othersectors. Combating this therefore requires an escalation to involve other ministers.



The crisis organisation of the Ministry of Economic Affairs is integrated into its day to dayorganisation. All of the support and policy directorates concerned are responsible formaking adequate preparations for and combating a crisis in their policy area. With regard

to gas supply, this means that the primary responsibility lies with the Energy Market(EM) Directorate, which is part of the Directorate-General for Energy,

Telecommunications and Markets (DGETM). The management team of the Energy MarketDirectorate nominates a crisis coordinator for gas, who has an important role to play inthe field of crisis management, both in the day to day organisation and in the crisisorganisation, and maintains contacts with the gas sector. The crisis coordinator is also amember of the Energy Crisis Team (ECT) and the operational EZ crisis team. The EnergyMarket Director is ultimately responsible for crisis management in the field of electricity

and gas and is the chairman of the Energy Crisis Team. At the Ministry of EconomicAffairs, the Departmental Coordination Centre for Crisis Management (DCC) isresponsible for the general coordination of crisis management, both within the Ministryand on an inter departmental basis.

4. Opportunity for natural gas undertakings and industrial gas customers to

respond (Article 10(1)(d))As stated, the Minister for Economic Affairs has political responsibility for energy supply,while the network system operators have operational responsibility. This division of responsibilities means that the Minister is responsible for determining the framework in

all phases of crisis management. Within the framework set, the network systemoperators do what is expected of them.

The Gas Law and the secondary legislation based upon it include a number of provisions

intended to guarantee security of gas supply. For example, the Minister monitors securityof supply each year. As part of this, he also examines measures to deal with peakdemand or the failure of one or more suppliers.

The network system operator has an important role to play, especially in guaranteeingsecurity of supply. It is the task of the network system operators to guarantee the safetyand reliability of the networks, and they should make arrangements with regard to

security of supply. Furthermore, they must have a quality control system relating, amongother things, to the safety and reliability of the transmission and distribution service andhave sufficient capacity to ensure transmission and distribution. If necessary, theMinister can impose investment obligations on network system operators.

The national transmission system operator for gas, GTS, has been given additional tasksand responsibilities by law to make arrangements regarding security of supply.Depending on the seriousness of a possible crisis, GTS will primarily use market basedmeasures, which can be done through the market oriented balancing system. Under thissystem, all parties (shippers) operating on the gas network must be in balance within acertain period of time. If this does not happen, for whatever reason, GTS has the means

to redress the resulting imbalance. It can use the bid-ladder to buy or sell the deficit orsurplus of gas on the market. The costs thus incurred by GTS are passed on to the partythat caused the imbalance. In a very serious crisis, GTS can give shippers a specificinstruction with the aim to restore the balance within the network. In case this does not

lead to results and the system remains in a situation of imbalance (the ‘red’ zone), GTSmay call an emergency and can act as described below.

GTS may call an emergency situation if and when it is confronted with large, unexpecteddisturbances in the transmission network, including communication and control systems,which may endanger the integrity of the network. In such a situation GTS take thefollowing measures:

(1) use of means which may have been contracted for emergency situations;



(2) instructions regarding installations for the storage of gas and LNG and entry point of

the transmission network;(3) instructions regarding exit points of the transmission network. This means that exits

can be instructed to reduce their off-take or to which off. The effect is that the

household sector will be affected last.

The legal for these measures to be taken by GTS can be found in the Gas Act, article 17b(7) ‘The network operator op the transmission network may give instructions on theexecution of a submitted programme, if this is necessary for the efficient execution of theoperator’s legal tasks.’

In addition to these day-to-day tasks and responsibilities, all network system operators

must work together to guarantee the transmission and distribution of gas and electricityeven in exceptional circumstances.

The Dutch Competition Authority’s Directorate for Energy and Transport Regulation(DREV) monitors compliance with and implementation of the legislation.

5. Measures and actions regarding district heating and electricity production(Article 10(1)(e))In the Netherlands, there are no specific State measures or actions regarding gas supplyto the district-heating and electricity-production sectors. These sectors also operate on

the gas market, either directly or indirectly. In a crisis, they are also protected throughthe balancing system operated by GTS.When it comes to the supply of electricity and the dependency from natural gas, theDutch transmission system operator for electricity, TenneT, is currently updating its

emergency plan. This plan will be available beginning 2013. The current plan only giveslimited attention to the interdepency between gas and electricity production, especially inthe Groningen area where gas production locations get a preferred treatment when thereare disturbances in the delivery of electricity. Furthermore there are generic emergency

measures if and when production fails.

6. Procedures and measures to be followed (Article 10(1)(f))

Prior to or during (impending) disruptions and crises, the DCC and the various policy andsupport directorates have their own tasks, responsibilities and powers within theMinistry’s crisis organisation. The Energy Market Directorate’s responsibility for(impending) crises in the gas sector is restricted to the downstream sector. Crises in the

upstream sector are dealt with by the National Mines Inspectorate (SodM). If a crisis inthe upstream sector has repercussions for the downstream sector, the Energy MarketDirector is involved.

ResponsibilitiesThe division of responsibilities between the DCC and the Energy Market Directorate is asfollows:

• the DCC is responsible for general coordination of crisis management, both within theMinistry and on an inter-departmental basis;

• the DCC is responsible for auxiliary matters in relation to crisis management;• the DCC identifies the framework within which the policy and support directorates

must develop crisis management;

• The policy and support directorates are responsible for developing crisis managementwithin their own policy or support area, taking into account the framework set by the

DCC.

PowersDepending on the crisis management phase, decisions are made either by the DCC or by

the Energy Market Directorate.



In the normal and alert phases, decisions are made by the Energy Market Directorate and

action is taken in accordance with the crisis management manual for gas and electricity.In the crisis phase, decisions are made by the DCC and action is taken in accordance withthe basic EZ crisis management manual.

Distribution of tasks

The following tables show the tasks to be performed by the DCC and the Energy MarketDirectorate, respectively, in each crisis management phase.

Normal phase

DCC Energy Market Directorate

• Acting as the initial and generalcontact and information point at theMinistry, contactable 24/7.

• Looking out for/followingdevelopments which may indicate aserious disruption in any of theMinistry’s policy areas.

• Coordinating the Ministry’s crisismanagement policy.

• Conducting inter-departmental andinternational consultations which donot specifically fall within the remit of the support and policy directorates.

• Internally guaranteeing and

continuously improving crisismanagement, among other thingsthrough a policy on training and

exercises.

• Ensuring that information is gathered

and distributed on an(inter-)departmental basis in the field

of general crisis management.• Providing auxiliary support to the

Ministry’s crisis organisation before,during and after a crisis.

• Internal and external contact pointwith regard to crisis management inthe gas and electricity sector.

• Looking out for/followingdevelopments which may indicate aserious disruption in its own sector.

• Informing the sector about its

responsibilities, tasks and powers, sothat the sector really does shoulder itsresponsibilities.

• Maintaining contacts with the sectorand, where necessary, putting itemson the agenda for the relevant regularconsultations that take place.

• Keeping the sector manual up to date(which includes updating the contactand availability details).

• Informing the DCC about relevantdevelopments with regard to crisis

management in the sector.• Participating in crisis exercises held on

a departmental or inter-departmentalbasis or by organisations within thesector.

• Responsibility for the necessary basic

information and keeping it up to date.

Alert phase


• Information exchange with the EnergyMarket Directorate (notification,

situation).• Advising on the escalation level.

• Information exchange with the DCC(notification, situation).

• Deciding on the (de-)escalation level.• Continuously monitoring the latest

developments with regard to thecurrent situation.

• Informing the CommunicationsDirectorate of any escalation.

• Maintaining contacts with partners inthe chain.



Crisis phase


• Information exchange with the EnergyMarket Directorate.

• Advising the Deputy

Secretary-General on the (de-)escalation level.

• Setting up the necessary crisis rooms.

• Dealing with the post-crisis phase.

• Information exchange with the DCC.

• Setting up the ECT.

• Member of the Operational Team and

the Policy Team.

Upon receipt of a notification, there is immediate communication between the DCC andthe Energy Market Directorate. The crisis coordinator for gas verifies and gathers the

relevant information with regard to the notification received. He then classifies thesituation into one of the three crisis management phases (normal, alert, crisis). Once thesituation has been classified, the crisis coordinator informs the Energy Market Director

and the Head of the DCC. After obtaining advice from the Head of the DCC, the EnergyMarket Director decides which escalation level to go to.

7. Crisis manager/crisis team (Article 10(1)(g))

If a crisis occurs, the Energy Market Director can summon the ECT. In performing itsrole, the ECT mirrors the day to day organisation as much as possible and is chaired bythe Energy Market Director or a member of the Directorate’s management team. The ECTfunctions as a ‘back office’ for the staff members of the Energy Market Directorate whohave seats in the Ministry’s crisis organisation teams, i.e. the Policy Team and theOperational Team.

The ECT consists of the following people:• chairperson: Energy Market Director or a member of the Directorate’s management

team;

• member: crisis coordinator for gas/electricity;• member: policy officer at the Energy Market Directorate;

• member: policy officer at the Energy Market Directorate.

The ECT has the following tasks:• gathering information and verifying its accuracy with companies and other relevant

partners;• analysing the information received and producing a summary and overview of critical

points;

• drawing up the measures to be taken;

• informing and advising the Policy Team and/or Operational Team on the measures tobe taken;

• maintaining contacts with the sector and reporting on this;

• maintaining contacts with other public authorities and reporting on this;• taking minutes of meetings;

• keeping abreast of incoming and outgoing information and ensuring follow up toinformation processing and compliance with any feedback sought;

• ensuring that the information that has already been gathered is accessible;• classifying the situation if there are any changes.

If the situation changes and can be classified as crisis management phase ‘normal’ or ‘alert’, the Energy Market Director can decide to dissolve the ECT, making sure that the

tasks resulting from the ECT are duly transferred to the day to day organisation.

8. Contribution of market based measures (Article 10(1)(h))It is for the network system operators and other parties operating on the gas market todetermine what measures to take to cope with a crisis. The competent authority has no



influence on this. However, where appropriate, the GTS can give shippers instructions

with the aim of balancing the network and maintaining or restoring that balance (seeparagraph 4).

9. Contribution of non-market based measures (Article 10(1)(i))As stated in the previous paragraph, it is for the network system operators and other

parties operating on the gas market to determine what measures to take to cope with acrisis. Consequently, in the Netherlands, no use is made of the non market basedmeasures listed in Annex III to the Regulation (none of which are therefore included inthe legislation in force).Only in the case of an emergency and then only as a measure of last resort, GTS caninstruct certain exits to reduce their off-take (see section 4).

10. Cooperation with other countries (Article 10(1)(j))In times of crisis, it may and will be necessary to cooperate with other (surrounding)Member States to cushion the effects of disruption to the gas supply. The Netherlandshas no cooperation agreements with other (surrounding) Member States which come intoforce only in times of crisis. Through the Pentalateral Gas Platform, the Netherlands is

engaged in more general cooperation with Belgium, Germany, France and Luxembourgon matters relating to natural gas (operation of the market, security of supply). If required by the nature and scale of a potential crisis, that platform will be used tomitigate its consequences. Furthermore, use will be made of existing regular (diplomatic)

relations with Member States and the European Commission where necessary. This will of course depend on the nature and scale of the crisis. The Netherlands also anticipates thatthere will be a role for the Gas Coordination Group set up pursuant to the Regulation.

Cooperation between TSO’sIn times of crisis, it may and will be necessary to cooperate with other (surrounding)TSO’s to cushion the effects of disruption to the gas supply. That is the Dutch cooperateswith the TSO’s in the surrounding countries and does not have cooperation agreements

with other (surrounding) TSO’s which come into force only in times of crisis.

The dispatching centres of the West-European TSO’s have frequent contacts on a daily

basis in order to safeguard a smooth operation of the West-European gas transport. Incase of an emergency they seek together for practical solutions. Up till now this way of working has assured that no interruption of the gas transport on Dutch border point hashappened, leading to situations in which the security of supply would have been

jeopardized.

The cooperation between TSO’s has been formalised in the Third Package (Regulation715/2009). The formalised cooperation has led to the identification of network relatedbottlenecks in the Ten Year Network Development Plan of ENTSOG, this in addition to theown analysis of (future) bottlenecks and the market consultation through the two-yearlyopen seasons by the Dutch TSO.

In the Gas Regional Investment Plans for Northwest-Europe a more in-depth analysis ismade for the region. This two-yearly plan provides insight in the regional gas supply anddemand balance, infrastructure developments, ongoing and planned projects and in theway TSO’s cooperate with each other.

11. Reporting obligation (Article 10(1)(k))Besides the reporting obligation under the Regulation, there are no reporting

requirements in the Netherlands other than those mentioned in this emergency plan.



12. Predefined actions to make gas available in the event of an emergency

(Article 10(1)(l))Given the situation of the Netherlands with regard to gas, as already described in theintroduction, the Netherlands has no predefined actions to make gas available in the

event of an emergency. The only exception is the LNG peakshaver installation inRotterdam. In order to safeguard the security of supply for protected customer in

periods of extreme cold weather (-9 / -17 degrees Celsius), GTS has control over thisinstallation.

Nor does the Netherlands therefore have any commercial agreements between theparties involved in such actions or compensation mechanisms for natural gasundertakings. The only possible exception to this is the purchase of gas by GTS as a

result of the Decree on security of supply (Gas Law) (See the Dutch Risk Assessment andthe Preventive Action Plan for further details). However, such purchases take place understrict commercial conditions, compliance with which is monitored by the DutchCompetition Authority’s Directorate for Energy and Transport Regulation. Moreover, thewhole purpose of such purchases is to deal with a potential emergency situation in timein order to ensure that it cannot and will not occur.

As regards the cross border supply of gas, all associated agreements and contracts are inthe commercial domain. The competent authority has no involvement in, or knowledgeof, these (apart from the contracts that are notified to the competent authority under

Article 13(6)(b) of the Regulation).

emergency plan natural gas 2012

Documents