1 / 28

Madrid, 27 th Sep 2012

17 th S G Meeting South Gas Regional Initiative. Madrid, 27 th Sep 2012. Agenda. II. Capacity Allocation Mechanisms. II. Capacity Allocation Mechanisms. II.1 CAM applied in the Portuguese-Spanish interconnection . Auction results (to be presented by TSOs).

andren
Download Presentation

Madrid, 27 th Sep 2012

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. 17thSG Meeting South Gas Regional Initiative Madrid, 27th Sep 2012

  2. Agenda

  3. II. Capacity Allocation Mechanisms

  4. II. Capacity Allocation Mechanisms II.1 CAM applied in the Portuguese-Spanish interconnection Auction results (to be presented by TSOs)

  5. II.1 CAM applied in the Portuguese-Spanish interconnection PROCEDURE • Project Pilot NC CAM: Annual Transmission Capacity Auction at the single virtual point between Portugal and Spain. • Done between July and September 2012. • Capacity to be offered for the gas year 1st Oct. 2012 to 30th Sep.2013. • Bundled capacity: each product offered includes the same amount of capacity, to the same shipper. Capacity in the secondary market remains bundled. • Existing entry and exit capacity between Spain and Portugal. • No interruptible Product will be offered if less than 95.00% of firm capacity, for that period and flow direction, has been allocated at the previous Firm Products Auctions. • Single-round auction, one clearing price to all bidders. • Regulated tariff in each country plus auction premium (50/50 split)

  6. II.1 CAM applied in the Portuguese-Spanish interconnection • EVALUATION OF CAM PROCEDURE • The pilot has been useful to identify which regulations had to be adapted, which documentation and processes had to be developed, and to raise awareness among shippers of the implications of the NC (bundled capacity, virtual point, standard capacity products,…). • At the time of applying the process there was no congestion, so a significant level of demand was not expected (why booking through this procedure and not before, or after?). • The transition from a FCFS system to an auction system could be questioned, since congestion and lack of competition were not the primary concerns. • It implies for shippers: provision of financial guarantees, more planning... • Annual auctions are less flexible for shippers in Spain. Until now, under FCFS having enough available capacity they could subscribe capacity for any period, from one day to several years, freely choosing the starting and end dates. • Shippers miss the possibility of securing “flat” capacity for a given period.

  7. II. Capacity Allocation Mechanisms II.2 Coordinated CAM Sp-Fr. Proposal for the short and medium term (for discussion) Proposal (to be presented by TSOs)

  8. II. Capacity Allocation Mechanisms II.3 North West Capacity Allocation platform (to be presented by the platform developer)

  9. III. Congestion Management Procedures III.1 Implications of new regulation on CMP (for information by NRAs) III.2 Next steps and calendar (for discussion)

  10. III.1 Implications of new regulation on CMP • EC Decision amending Annex I of Regulation (CE) 715/2009 on Guidelines on CMP has been recently approved (24th August). • Mechanisms considered in the Guidelines on CMPare: • Oversubscription and buyback • Surrender of contracted capacity • LT UIOLI • Firm day-ahead UIOLI • They will apply to physical and virtual international connection points and connections between different balancing zones. • These mechanisms must be implemented before October 2013, except Firm day-ahead UIOLI, for which the deadline is July 2016 • ACER will annually monitor congestion. First ACER’s monitoring report will be done in 2014.

  11. III.1 Implications of new regulation on CMP • Oversubscription and buyback • Proposed by TSOs and approved by NRAs. • Based on incentives to offer additional capacity on a firm basis. Taking into account technical conditions: calorific value, temperature, expected consumption…Reflecting the risks of TSOs. If renomination is higher than available capacity, additional capacity will be bought back. • Revenues from selling additional capacity and costs from buying back capacity are shared between TSOs and users ---- NRAs decide on the % distribution. • Technical capacity (in particular surrendered capacity or capacity increase by application of CMP) must be allocated before any additional capacity. • NRAs assess the mechanism. TSOs must provide all relevant data.

  12. III.1 Implications of new regulation on CMP • Surrender of contracted capacity • TSOs will accept any surrendered firm capacity contracted by users. • Exception of capacity products with a duration of a day and shorter. • Primary capacity holder owns contract’s rights and obligations referred to the released capacity until this capacity is contracted by a third party. • Surrendered capacity will be reallocated only after all available capacity has been allocated. • Specificterms and conditions approved by NRAs.

  13. III.1 Implications of new regulation on CMP • LT UIOLI • TSOs will withdraw systematically underutilised contracted capacity if there are request for capacity • Underutilised capacity is considered if: • Network user uses less than on average 80% of its contracted capacity from 1 April until 30 September and from 1 October until 31 March, in contracts duration more than 1 year. • Network user systematically nominates close to 100% of its contracted capacity and renominates downwards to avoid the rules of ST UIOLI. • Primary capacity holder will lose the underused capacity for a specific period of time, or until the end of the contract • Users retains its rights and obligations until capacity is reallocated. • NRAsmonitor themechanism. TSOsmustprovideallrelevant data.

  14. III.1 Implications of new regulation on CMP • Firm day-ahead UIOLI • Application mandatory based on yearly monitoring report of ACER. • If demand exceeds offer in the year or in one of the next two years: • for at least 3 firm capacity products of 1 month or • for at least 2 firm capacity products of 1 quarter or • for at least 1 firm capacity products of 1 year or more or • where no firm capacity product of 1 month or more has been offered. • In these cases, firm renomination is permitted up to 90% and down to 10%. However: • If the renomination exceeds 80% of the contracted capacity, half of the non-nominated volume may be renominated upwards. • If the nomination does not exceed 20% of the contracted capacity, half may be renominated downwards.

  15. III.2 Next steps and calendar • Next actions to be defined: • So far in the SGRI, work was done on Long Term Use It Or Lose It • Harmonized mechanism to be applied in two borders of the Spanish system with Portugal and France Coordinated work in the Regional Initiative in the coming months • Need todevelop common criteria for oversubscription and buy-back, surrender and allocation, and UIOLI short term in the three countries • Implications on developing/amending national regulation.

  16. IV. Ten-Year Network Development Plan and Project of Common Interest (PCI) IV.1 Status Record OS 2013-2015 (for information by TSOs) IV.2 Update on PCI Identification (for information by regulators)

  17. IV. TYNDP and PCIs IV.2 Update on PCIs identification North-South gas interconnections in Western Europe • Working group created by the CE with the aim of identifying PCIs in the N-S corridor in Western Europe according to draft Regulation for trans-European energy infrastructure. • The group is formed by Governments, NRAs and infrastructure promoters of 11 European countries. Non-European countries (Algeria, Norway and Switzerland) have also been invited to take part in the meetings. • The work of the group is supported by an external consultant to assist it in evaluating potential PCIs. • The TYNDP and the GRIPs are the starting points to select PCIs, although others infrastructures may be analysed. • CNE to report AWG on PCIs selection process in the gas Western corridor

  18. IV. TYNDP and PCIs IV.2 Update on PCIs identification North-South interconnections in Western Europe • Kick-off meeting on 30 March Presentation of draft ToR and the working plan. List of PCIs to be ready by November 2012 • 2º meeting on 7 June • Design of questionnaires to collet information on possible PCIs from promoters • Assignment of weights for the criteria considered in the draft Regulation to evaluate infrastructures (market integration, competition, SoS and sustainability) • Preliminary list of candidates to PCIs: 42 projects (26 related to pipelines, 8 related to LNG infrastructure and 7 related to storage). 20 projects in the South Region. The indicative number of PCIs mentioned in the draft Regulation is 50 for all Europe. • Public consultation on PCIs list, which was opened until 20 September. • 3º meeting on 10 July • Presentattion of consultants’ methodology and simulator tool to assess projects proposals • New list of PCIs: 52 projects (30 pipelines, 10 LNG, 12 storage) • EC’s open information session on 17 July • Next meeting on 28 September Presentation of the preliminary results of the PCI assessment

  19. V. Tariffs Portugal-Spain. Final document

  20. VI. Transparency VI.1 Final Report on the Supervision of compliance (for information by NRAs) VI.2 Next steps and calendar (for discussion)

  21. VI.1 Final Report on the Supervision of Compliance with the Transparency requirementsonsulta Pública sobre harmonização das tarifas de interligação de gás natural entre Portugal e Espanha • BACKGROUND • Transparency questionnaires are designed by NRAs according the transparency obligations established in Regulation (EC) 715/2009. Following NW Initiative but including LSOs and SSOs supervision. • Chapter 3 of Annex I of Regulation • Article 15, 19 and 20 of Regulation • All operators in the region have filled out the questionnaires. • Content of publication • Scope of information published • Format of publication

  22. VI.1 Final Report on the Supervision of Compliance with the Transparency requirementsonsulta Pública sobre harmonização das tarifas de interligação de gás natural entre Portugal e Espanha • WORK DEVELOPED Final Report on Third Package Transparency Compliance Made by NRAs – July 2012

  23. VI.1 Final Report on the Supervision of Compliance with the Transparency requirementsonsulta Pública sobre harmonização das tarifas de interligação de gás natural entre Portugal e Espanha • MAIN FINDINGS (I) • In general, a significant level of compliance is reported on all transparency requirements in Regulation, although it is not the same for the three types of operators or in the three countries. • The degree of competition in the gas market might also play a significant role when pushing operators to disclose information. • Small or independent operators from the TSOs register lower levels of compliance. • Individual contact between the NRA and the operator is needed to check full compliance ASAP. • Subjective criterion, misunderstandings and particular national conditions can lead to different interpretations. • TSOs’ compliance • LSOs and SSOs’ compliance • High level of compliance is particularly referred to publishing information on: • Gas system description. • Services description and contracting process. • Nomination and matching procedures. • Balancing rules and imbalance charges. • Flexibility and tolerance levels. • Emergency mechanisms. • Procedures agree at interconnection points. • Some of them reflect the available information, mainly on: • Service description. • Contracted and available storage facility capacity. • Use and availability of third-party access services. • Form of publication. • In some TSOs websites the relevant information is not easy to find. Also, there is a need to improve frequency of publication, historical data, language and formats • There is room for improvement in easy and direct access, friendly manner and more information published in English.

  24. VI.2 Next steps and calendarnsulta Pública sobre harmonização das tarifas de interligação de gás natural entre Portugal e Espanha • NRAs to take action to assure compliance with requirements, analysing provisions together with TSO in each country. • NRAs to continue working on supervision compliance. To inform and monitor on new requirements laid down in new regulation (Decision on 24 August amending Regulation (CE) 715/2009) • TSOs to implement new requirements by Oct 2013.

  25. VII. Review of actions in the WP 2011-2014 (I)

  26. VII. Review of actions in the WP 2011-2014 (II)

  27. VIII AOB and nextmeetingssobre harmonização das tarifas de interligação de gás natural entre Portugal e Espanha • Next SG meeting • Next IG meeting

  28. Calendar 2nd semester 2012 - SGRI • Proposal: • 6 November: 21st  IG • 13 December: 18th SG

More Related