European Developments

Transmission Workgroup3rd May 2012

Gas Balancing Update

Transmission Workgroup

3rd May 2012

Chris Shanley

Stakeholder

Workshop

Dec Jan Feb Mar Apr June JulyMayNov Jun JulOct Apr Aug Sep Nov

Invitation from Commission

SubmitNetwork Code

Project launch13/14 Dec 23 SJWS

7-8 SJWS

Consultation

May

Workshop

FG Development of Network Code with stakeholder on the basis of the final Framework Guidelines ACER

2011 2012

Development of draft network code in cooperation with stakeholders ENTSOG

Oct

9 SJWS 26 SJWS

11-12 SJWS

ENTOG - project plan

3

Date Event

13 April 2012 Public consultation on the Draft Code launched

9 May 2012 Mid-consultation workshop

12 June 2012 Deadline for responses to the public consultation

26 July 2012 Post-consultation workshop

22 August 2012 Code and supporting document published; Stakeholder process starts

4 September 2012 Stakeholder Support process ends

5 November 2012 Final ENTSOG – drafted Code submitted to ACER

Consultation Phase

Balancing Draft Code and Consultation issued 13 April

The response deadline is 17:00 CET 12 June

The ENTSOG consultation and other documentation can be found at:

http://www.entsog.eu/publications/balancing.html

ENTSOG have requested that responses are:

Focused and succinct as possible and provide supporting evidence where available

Made via the formal consultation response form

Mid-consultation stakeholder workshop

There will be a Workshop in Brussels on 9th May

Opportunity for an exchange of views about the Supporting Document and Draft Code

Agenda TBC but expected to concentrate on key stakeholder issues/concerns

Please register via the ENTSOG website

EU Gas Balancing Draft Code

There are 11 chapters and 46 pages of text

NG has identified some minor issues with text and these are being progressed directly with ENTSOG

NG initial view is that the code is generally consistent with framework guidelines and GB regime but some impacts have been identified

Chapter Title

1 General Provisions

2 Balancing System

3 Cross-border cooperation

4 Operational Balancing

5 Nominations

6 Daily Imbalance Charges

Chapter Title

7 Within Day Obligations

8 Neutrality Arrangement

9 Information Provisions

10 Linepack Flexibility Services

11 Implementation, Interim measures and entry into force

NG initial impact assessment of draft Network Code against UNC (1)

Chapter Conflict or inconsistency? TSO Obligation

1. General Provisions

• Network code shall prevail over another network codes or national legislation

2. Balancing System

• None identified

3. Cross-border cooperation

Consultation on options

4. Operational Balancing

Short term standardised products: •No GB physical product defined but product could be replicated by Location Market Transaction•Temporal Market Product (an optional tool available to NG)

NG Initial IA of draft Network Code against UNC (2)

Chapter Conflict or inconsistency? TSO Obligation

5. Nominations • New Nomination process required for Interconnection Points (IPs)

• Interactions with CAM, CMP, interoperability still being analysed by NG

Daily and hourly nominations (at IP) – consultation on whether harmonisation is required

6. Daily Imbalance Charges

• Marginal prices and average price to only include Title Market Products

7. Within Day Obligations (WDOs)

Consultation on any proposal to introduce a WDO

8. Neutrality Arrangements

• None Identified

NG Initial IA of draft Network Code against UNC (3)

Chapter Conflict or inconsistency? TSO Obligation

9. Information Provision

• NDM Derived Forecast – day ahead at 12.00 UTC (timescale linked to IP Nominations process)

More frequent info - Cost Benefits Analysis (CBA) and consultation

10. Linepack Flexibility Service

Prior approval of proposal by NRA

11. Implementation, Interim Measures and Entry into force

• Interim measures are unlikely to apply to GB

• TSOs have 12 months to comply after code comes into force

TSO can request an additional 12 months (24 months in total)

Annex 1. Definitions

• Gas day (5:00 to 5:00 UTC)

Consultation questions of interest to GB stakeholders

57 questions raised

Views on key elements of a daily balancing regime and the level of detail provided:

Operational balancing and trading related questions (Q5 to Q14

Daily Imbalance charges and small adjustment (Q19 to Q23)

Neutrality (Q30 to Q36)

Level of detail in the code (Q55 to Q57)

Views on the new Nomination process for IPs

Nominations (Q15 to Q18)

Interoperability Update

Transmission Workgroup

3rd May 2012

Interoperability Update

Reminder that ACER’s consultation on the draft Framework Guideline closes on 16th May 2012

We would encourage the industry to respond

We will present a summary of the National Grid NTS response at the June Transmission Workgroup

EU CAM Network Code and CMP Guideline Proposal Update

Transmission Workgroup

3rd May 2012

Capacity Allocation Mechanism (CAM) - Update

CAM Network Code was formally issued to ACER 6th March 2012.

ACER need to provide an opinion on the compliance with the CAM Framework Guideline by 6th June 2012.

ENTSOG continue to discuss with ACER questions in relation to the CAM code

Centred around withholding capacity

The sale of unbundled capacity

Technical Interconnection Point Mismatches

Incentive Release.

Tariffs.

Establishing Virtual Interconnection Points.

Congestion Management Procedures (CMP) Guidelines - Update

Revised CMP Guidelines sent via Ofgem to GB stakeholders 10th April 2012.

Further comments provided from National Grid to DECC and Ofgem.

Discussions held at GB Stakeholder meeting on the 13th April 2012 prior to the Comitology meeting.

Comitology meeting held 20th April 2012.

EU Updates Timetable

Timetable aims to highlight the key items (consultations, workshops, decisions, etc.) National Grid NTS expect to cover via this agenda item in the forthcoming months

Topic TX Workgroup

• CAM update• Summary of NG response to Interoperability FG

consultation

June 2012

• Output from SJWS on TYNDP / Final ENTSOG TYNDP proposal

July 2012