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European Developments Place your chosen image here. The four corners must just cover the arrow tips. For covers, the three pictures should be the same size and in a straight line. Transmission Workgroup 7th June 2012 EU Interoperability & Data Exchange Network Code Place your chosen image here. The four corners must just cover the arrow tips. For covers, the three pictures should be the same size and in a straight line. Transmission Workgroup 7th June 2012 The current position ACER published Draft Framework Guidelines on 16 March NG NTS submitted its written response covering all 7 FG themes on 16 May This presentation provides a summary of that response 3 Key Messages Restrict the FG to Interconnection Points only Minimum harmonisation Should be a net benefit to industry and consumers Demanding timescale Unique GB issues as an island nation 1. Interconnection Agreements ACER Proposals NG Response Minimum set of requirements as a mandatory ‘model template’ covering TSO-TSO and TSO-Shipper elements GB IAs limited to TSO-TSO operational arrangements Standard Agreement as a default should TSOs not agree on content within 12 months NRA involvement in approval of IAs & dispute resolution TSO-Shipper rules best addressed in national network codes Minimum list of items has merit but many parameters are IP-specific NRA involvement should be proportionate and specific 5 2. Harmonisation of Units ACER Proposals NG Response Lack of harmonisation could be a barrier to cross border trade In general, lack of common units not a barrier to trade Harmonised units for energy, volume, pressure and gross Calorific Value Use of conversion tools is adequate in most cases Common units may be desirable to support future commercial processes/data publication regarding IPs 6 3. Gas Quality ACER Proposals NG Response Adjacent TSOs agree how to handle gas quality differences at IPs Stronger role for NRAs in determining which differences require solutions TSOs to provide Users with ‘pertinent’ gas quality information Provision of information should not be a pan – EU obligation on TSOs 10 year Gas Quality Outlook by ENTSOG on possible changes in gas quality ENTSOG may not have access to future gas quality information 7 4. Odourisation ACER Proposals NG Response Cross border flows of nonodourised gas to be the default rule NRAs to work with TSOs to explore options using CBA and safety assessment 8 5. Data Exchange ACER Proposals NG Response Extend harmonisation to all common TSO-TSO, and TSO-counterparty data communications Gradual approach via ‘roadmap’ towards common solutions Common, standardised messaging protocol and standards Identify requirements that need to be serviced before solutions Selection of solutions using CBA and following industry consultation Phased approach to implementation appropriate 9 6. Capacity Calculation ACER Proposals NG Response Discrepancies between maximum capacities either side of an IP may cause barriers to trade Discrepancies to be expected and not a barrier TSOs required to provide detailed description of capacity calculation methods TSO incentives the key to maximising capacity Adjacent TSOs to cooperate to reduce discrepancies Code to define a procedure for dealing with discrepancies ENTSOG to define timeline for discrepancy reduction and reporting role to ACER 10 7. Cross Border Cooperation ACER Proposals NG Response General obligation on TSOs to cooperate fully to achieve market integration Obligation not needed as already covered by Article 4 of the Gas Regulation Regular ENTSOG reviews of TSO practices 11 Next Steps ACER currently preparing ‘Evaluation of comments’ paper Impact Assessment delivered to ACER Mid June Impact Assessment & final FG provided by ACER to Commission End July Code development by ENTSOG Sept 2012 – Sept 2013 12 Gas Balancing Update Transmission Workgroup 7th June 2012 Gas Balancing Code Consultation 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 14 EU CAM Network Code and CMP Guideline Update Transmission Workgroup 7th June 2012 Capacity Allocation Mechanism (CAM) - Update According to the 3rd Package ACER need to provide an opinion on the CAM Code compliance with the Framework Guideline by 6th June 2012 A number of meetings have been held between ENTSOG and ACER relating to the content of the CAM Code over the last two months Discussions have been focused on: Capacity duration of 15 years How much Capacity is withheld for the medium and short term auctions (quotas) The sale of unbundled capacity resulting from: Technical Interconnection point mismatches More Capacity already sold on one side of an IP Additional incentive release Capacity Allocation Mechanism (CAM) - Update Inclusion of Tariffs in CAM Code Establishing Virtual Interconnection Points (at two or more adjacent entry exit systems) ACER’s opinion was discussed by the ACER Board of Regulators at its 22nd May meeting ENTSOG is preparing to move quickly on those issues formally raised by ACER. Congestion Management Procedures (CMP) Guidelines - Update CMP Guidelines agreed and approved by Member States at the 2nd Comitology meeting on the 20th April 2012 Currently undergoing Commission internal processes including the transposition into all Member States languages Expectation that this will take until Sept 12 GB has to be compliant with the Guidelines by 1st October 2013 National Grid are in conversation with Ofgem as to National Grids compliance with the CMP Guidelines. 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 • July 2012 Output from SJWS on TYNDP / Final ENTSOG TYNDP proposal