TITRE

1. Interoperability and Data Exchange Rules for European Gas Transmission Networks Geert Van Hauwermeiren, CREG Chair Task Force Interoperability, ACER 29th ECRB Gas Working Group meeting, Vienna TITRE

2. Content • Introduction & process; • Content of network code on Interoperability and Data Exchange rules; • Conclusion. 2

3. 7 6 Contract Commodity Trader Integrated Cie 2 1 Commodity 13 14 Nomination & Confirmations 3 Transport 7 Measures 12 Allocation / Billing 4 8 11 5 9 10 Introduction From a straightforward value chain ...… towards a complex combination of value chains Gas producer Gas User Shipper Gas Flow Manager Grid Operator Metering Agent 3

4. 7 7 6 6 Trader’’ Gas producer Trader Trader Trader´ Gas User 2 2 1 2 Gas User 13 13 14 14 3 3 3 7 7 Shipper’ 12 12 12 Shipper Shipper’’ Gas Flow Manager’ 4 4 4 8 8 8 11 11 11 Gas Flow Manager Gas Flow Manager’’ 9 Grid Operator’ 5 5 5 9 9 Metering Agent’ Grid Operator 10 10 10 Grid Operator’’ Metering Agent’’ Metering Agent Introduction … demanding for thorough & efficient coordination Let operators work together to optimise system to system performance More roles & actors, more transactions (types and volume) in any direction; Needs a harmonised approach, to clear barriers (restrictions for trade). 4

5. Introduction Aim and Objective • to ensure that users of two or more transmission systems operated by separate entities in Europe, do not experience restrictions in flows, due to: • technical differences; • operational behaviour; • wrong communication language; • higher than may be expected if the relevant networks were efficiently operated by a single entity. • to encourage and facilitate shipment of gas across gas transmission systems within the EU, and thereby move towardsgreater internal market integration. 5

6. Process of a network code Framework guidelines process 6

7. Process of a network code NC Development: further steps Framework guideline ACER Capacity Calculation to NC CAM process Network code ENTSOG Review ACER Revision of NC ENTSOG 26 January 2012 - 26 July 2012 11 September 2012 - 10 September 2013 21 November 2013 Comitology 18 December 2013 15 January 2014 … 28 April 2014 7

8. Content of NC NC Interoperability and Data Exchange 8

9. Interconnection Agreements Framework Guidelines & Network Codes Content of NC Business Rules (shipper’s registration, matching rules, flow control/imbalance handling, exception notice in case of deficient gas quality, allocation regime (OBA)); Technical Rules (maintenance, measurement, right of access, exceptional flow conditions in circumstances which might cause capacity reductions, delivery conditions (pressure, temperature, gas quality), energy conversion; Data exchange: Communication and Online Data Transmission Duration of the Interconnection Agreement Confidentiality Liability and Circumstances Excluding Liability Governing Law and Dispute Resolution Amendment of the Interconnection Agreement Force Majeure Because of interaction with network users, broader and specific rules are set under seperate headings in this FG 9

10. Interconnection Agreements : benefits as basic instrument Content of NC • Harmonization of Interconnection Agreements leads to harmonizing (main issues): • Matching rules; • Flow control (flow transition, ramp-up, ramp-down, …); • Allocation regimes for gas quantities; • Measurement principals; • Communication in case of exceptional events … • In a nutshell, ... leads to harmonization of the operations at IPs for both TSOs and shippers; • Default rules will undoubtedly lead to uniformity amongst European TSOs; • Transparency provided to shippers when their rights/obligations are affected. 10

11. Units Framework Guidelines & Network Codes Therms 25°C : bar : °C : m³(n) : kWh/m³(n) Therms 15°C GJ 15°C Sm³ MWh 0°C m³@20°C GJ 25°C m³(n) Mix MMJ 25°C MMJ 15°C POST network code Content of NC Pressure Temp. Volume GCV Network Code PRE network code • For pressure, it should be indicated whether it refers to absolute (bar(a)) or gauge (bar(g)). • The reference conditions for volume shall be 0°C and 1.01325 bar(a). • For GCV, Energy and Wobbe-index the combustion reference temperature shall be 25°C. 11

12. Problem Identified : Gas Quality Content of NC The issue of Gas Quality is very important to allow natural gas to be treated as a freely tradable “commodity” in the market place, to allow liquidity to grow. The gas markets are becoming more & more interconnected with the prospect that gas quality specification differences across the market can lead to restrictions for trade and free flow of gas. Without having a “standard” harmonised approach on specifications, case by case installed (transparent) services shall have to connect Markets (facilitating approach). A governance structure is installed to steer towards a solution. 12

13. Content of NC Gas Quality • No harmonisation of Gas Quality specifications envisaged ! 13

14. Content of NC Odourisation • Different practices in odourisationhamper cross-border trade and market integration. • ENTSOG’s 2011-2020 Ten Year Network Development Plan • A problem with cross regional consequences (from South to NW) • The topic thus fully falls within the scope of the Network Codes as defined in article 8(7) of the Gas Regulation. 14

15. Data Exchange Framework Guidelines & Network Codes Content of NC Evidence : Option taken: Full harmonisation is necessary to allow system users to overcome the difficulties they are currently facing in relation to the lack of harmonisation. 15

16. Conclusion • Conclusions : • NC shows a high degree of compliance with the FG; • But some issues remain (not highly substantial); • Outcome of ENTSOG’s work: 16

17. Thank you for your attention! Thank you for your attention www.acer.europa.eu