European Developments

Transmission Workgroup5th January 2012

European Gas Balancing Network Code Update

Chris Shanley

ENTSOG’s Project Plan Consultation

Respondents: 38, including companies, associations and academics

Project timeline - ENTSOG to maintain the timeline in the original project plan, making revisions only when strictly necessary

Stakeholder participation - Indicated participation levels should provide a good basis for discussing Balancing Network Code challenges

Planned stakeholder involvement in project - ENTSOG to maintain the number and schedule of Stakeholder Workshops (SJWSs) as in the original project plan

Participants

Prime Movers: 8 Rene Luijten (Enexis) - CEDEC

Gunnar Steck (E.ON) - EFET

Eva Henning (Thuega); Paul de Wit (Alliander); others - eurogas

Miguel Vazguez; Michelle Hallack - Florence School of Regulation, EUI

Claude Mangin - GdFSuez

Charlotte Patrigeon - GrDF

Kees Bouwens (Esso); Christiane Sykes (Statoil) - OGP Europe

Steve Rose - RWE Supply & Trading

Active SJWS Participants: 27

Consultation respondents: 11

Observers: 4

Stakeholder

Main activities of ENTSOG and stakeholders during BAL NC development phase

Workshop

SJWS 1 •Roles & responsibilities•Imbalances / financial•Within-day obs.•Info. ProvisionAbove to be confirmed

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 launch documentation

Development of draft network code in cooperation with stakeholders

Refinement of network code based on the feedback by stakeholders

SJWS SJWS SJWS SJWSFeedback on drafted Network Code by ENTSOG

Workshop

ENTSOG

SJWS 2 • Balancing products• Merit order• Charges• Interim measuresAbove to be confirmed

SJWS 3 • Within-day obs.• Info. provision• Balancing products• NominationsAbove to be confirmed

SJWS 5 • To be confirmed

SJWS

Oct

9 SJWS

26 SJWS

11-12 SJWS

SJWS 4 • Consolidation• Preview of network code• Cross-border topicsAbove to be confirmed

Current project plan

5

ENTSOG-internal organisation for project

ENTSOG governance

General Assembly

Board

BAL Working Area

6

Expert Kernel Groupsof TSO members

- Advisory- Commercial framework

- Cross-border issues- Info Flows/DSO

- Genuine system needs (GSN)- Others (TBD)

ENTSOG Brussels Team

Tori GerusNoel Regan

Nigel SismanFrederik Thure

Ruud van der Meer

Primemovers

External stakeholders

SJWSs, meetings,consultations, etc.

Balancing Network Code - Launch Event

Balancing Network Code Launch Workshop was held 13th and 14th December

89 Stakeholders attended

live web-streaming

All presentations and launch documentation is available via http://www.entsog.eu/events/BALNC1/presented.html

Next SJWS: SJWS1, 11-12 January 2012

Balancing Network Code - Launch document

The scope of the Launch Document is guided by ACERs framework guidelines on gas balancing

Intended to provide a foundation for discussions with stakeholders and the development of the network code

Contains several concepts for further consideration with stakeholders

Divided into two sections:

Balancing Target Model (BTM) and

Transitional Steps - interim measures that can be used during the transition to the balancing target model

Transparency update

10

Transparency Compliance Monitoring

Background

Regulators of the Gas Regional Initiative North West (GRI NW) agreed to examine compliance of TSOs against the new gas transparency requirements

TSOs within the GRI NW region were asked to complete:

a questionnaire to explain whether or not they publish the required information required

include links to the relevant information

All TSOs have responded

11

Transparency Compliance Monitoring

Consultation on Compliance Monitoring of TSOs against the Third

Package Gas Transparency Requirements 

http://www.acer.europa.eu

Issued 18/11/11

In order to provide an assessment of TSOs’ compliance, the

regulators are now seeking stakeholder views on the content of

the TSOs’ responses

ACER would welcome your views by email to

TransparencyNW@Acer.europa.eu by 20 January 2012.

ENTSOG Winter Outlook 2011/12

ENTSOG Winter Outlook 2011/12

ENTSOG have published their Winter Outlook Report for 2011/12

The report provides an assessment of the European gas network regarding its ability to a) allow for supply flexibility when meeting the High Daily Demand and b) shows various scenarios of storage stock level during Winter 2011-2012 (October to March).

The Key Conclusions were:

Gas stocks available on 1 October 2011 are sufficient to cover at least a 10% increase in the overall European Winter demand in comparison with an average winter (this is equivalent to about 365 TWh of additional consumption, which is as high as the total French Winter demand).

The European gas network is sufficiently robust in all parts of Europe to offer significant flexibility even under High Daily Demand conditions.

The report can be found on the ENTSOG website at: http://www.entsog.eu/publications/index_g_OR.html

EU CAM Network Code and CMP Guideline Proposal Update

Transmission Workgroup

5th January 2012

Capacity Allocation Mechanism (CAM) - Update

Amendments have been made to the CAM Code following the 2nd Stakeholder Consultation

Main aspects detailed in last months update.

Work continues to finalise the Code.

Activity By when

ENTSOG Finalise Network Code 16/01/12

Internal Governance Approval 26/01/12

ENTSOG Board Approval 06/03/12

Deliver Network Code to ACER 09/03/12

Congestion Management Procedures (CMP) Guidelines - Update

A revised version was issued 20th December 2011.

DECC seeking GB Stakeholder views on current version.

The 1st Comitology meeting for Member States is expected to be 26th January 2012. The final version needs to be in place by then.

Interoperability Update

Phil Hobbins

Interoperability – a reminder

‘Interoperability’ represents the third priority area of European Network Code development

The term refers to the ability of diverse networks to work together - ‘inter-operate’

The aim of the Code is to harmonise the physical / operational differences between TSOs that could impair the functioning of the EU gas market

Interoperability Framework Guideline

We had expected ACER to publish a consultation on the Framework Guideline in mid-December but at the time of writing this has not yet happened

Key issues:

Scope of application - all European TSO entry and exit points or cross border interconnection points only?

Gas quality

Capacity calculation

Nomination ‘matching’ processes supported by OBAs

Gas Quality Update (1 of 3)

The EC chaired a Gas Quality Harmonisation workshop for member states on 5th December 2011

Series of set piece presentations from:

The Commission

GL/Poyry

ACER

GIE

EUROMOT

ENTSOG

Marcogaz

View the presentations at: http://ec.europa.eu/energy/gas_electricity/gas_quality_harmonisation_en.htm

Followed by open floor discussion

Gas Quality Update (2 of 3)

A ‘theoretical’ discussion followed on the key issues:

Options for delivering harmonisation

Who bears the costs

Who has responsibility

Safety

GL/Poyry have been asked to conclude their cost/benefit analysis by February 2012

The Commission invited further views / analysis and intend to convene a smaller group in the near future with a view to publishing a ‘roadmap’ for the next Madrid Forum in March 2012

Gas Quality Update (3 of 3)

CEN Phase 1 Final Report was published just before Christmas

Describes the results of the appliance testing programme in a ‘step’ format, i.e. the wider the wobbe range the more appliances are impacted

There is to be a period of national assessment of the results although the process for this is currently unclear

Phase 2 work (non-combustion parameters and development of the European Standard) has started but will require a definitive conclusion from phase 1

EU Updates timetable

EU Updates Timetable

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

Topic TX Workgroup

• CAM & CMP Update Feb 2nd 2012

• Interoperability - National Grid NTS response to FG consultation

• Gas Regional Investment Plan (GRIP) Consultation Feedback.

March 2012