Gas Installation situation in the Czech Republic

1. UTIL-GI-07-07 Gas Installation situation in the Czech Republic Marcogaz WG Gas Installers meeting 20th November 2007 Prague Šárka Hladíková (Myšková)Czech Gas Association D478

2. Content • History and current situation and technical data of the Czech Gas Industry • Information about Czech Gas Association (CGA) • Gas Installation situation in the Czech Republic

3. CZECH GAS INDUSTRY – historical milestones • history dates back to the mid-19th century – first local town gas works • the Czech Gas Industry's 160th anniversary in 2007 • first gas producing coke oven plant in 1847 – first 200 gas lamps in the streets of Prague • by the end of the 19th century - 55 local gas works • after World War Two – replacement by large town gas plants + development of high pressure network • natural gas production and distribution – Southern-East part of the Czech Republic • In 1973 - first part of the Transit Gas pipeline started operation – Natural gas from Russia to western Europe and for customers in the Czech Republic

4. Ústí n.Labem HPS Olbernhau HPS Hora Sv. Kateřiny Hradec Králové Ostrava Praha KS Kouřim Plzeň PZP Háje PZP Třanovice PZP Štramberk PZP Lobodice HPS Waidhaus Brno KS Strážovice KS Kralice KS Veselí n.L. Transgas head office Gas transmission system Very high-pressure system Compressor station Border transfer station Inland transfer station Transfer and metering station Underground storage facility Head offices of regional distribution companies KS Hostim České Budějovice PZP D. Dunajovice PZP Tvrdonice KS Břeclav HPS Lanžhot Gas Transmission system

5. TECHNICAL DATA of the Czech gas Industry • 70 % imported natural gas from Russia and 30 % imported from Norway • number of customers in the Czech Republic – about 3 millions • natural gas consumption – 10billions m3 per year • Length of Transmission pipelines – about 3600 km • Length of Distribution pipelines – nearly 70 000km • 8 Gas Underground storages • 3 cross border points • no LNG terminal

6. CZECH GAS INDUSTRY – current situation • mid 1990s privatization of the majority interest in the Czech Gas Industry • new strategical partners – mainly RWE Energy Group and now E.ON energy company • RWE holds its interests: • a 100 % in Transmission company TRANSGAS • and majority in 6 Gas Distribution companies • liberalization and market opening process - according to the Directive 2003/55/EC - started by the passing of a new Energy Act • process was divided into three stages: • 1st stage – market opening for big industry customers • 2nd stage – all customers except households • 3rd stage – all customers and finalized by the 1st January 2007 for all customers

7. 1st phase of market opening 2ndphase of market opening 3rd phase of market opening 100% 2001 2002 2003 2004 2005 2006 2007 2008 Price regulation (100 %) Legal unbundling of transmission system operator Legal unbundling of distribution system operator Liberalization and gas market opening

8. professional association in the field of Gas Industry representation of the Czech Gas Industry at international level and support of natural gas around 350 members from: trade companies (RWE Transgas and local distribution companies) individuals membership in IGU, MARCOGAZ, ENGVA,... takes active part in standardization activities and cooperates with Czech Standardization Body: preparation of the Czech standards implementation of ISO and EN standards preparation of Czech comments elaboration of national technical rules provides information from European and world gas industry to its members organization of conferences, seminars and workshops publication of Czech gas magazine PLYN promotes the use of natural gas vehicles (NGV) in transport editing, distribution and sale technical rules prepared by the Czech Gas Association CGA supports GAS´s business activities prepares and provides certification and testing of gas industry products and technologies (registered products) CZECH GAS ASSOCIATION (CGA) GAS Ltd.

9. Legenda: Unpaidposition CGA Employees CGA ORGANIZATION SCHEME GeneralAssembly Audit Board Board Executive Committee Technical Coordination Committee SecretaryGeneral Assistant Headof TS RedactionPLYN Specialist Coordinator NGV Economist Technical Section Chairmanof TechnicalCommittees Chairmanof ProgrammeCommittees

10. Gas Installation situation in the Czech Republic and the competence requirements for Gas Operatives • gas installation activities are based on obligatory legislative regulations • activities are divided into 2 categories: • Gas Installers • Gas Installation Inspectors Gas Installer and Inspector • = a person who hold a certificate of professional competence issued by the Institute of Technical Inspection (ITI) • = knowledge and understanding ofgas safety legislation and gas emergency action • = technical education and minimum experience 1 year in the gas industry • = ITI can control gas installation from the view of safety in operation

11. GAS INSTALLERS • carry out assembly activities on restricted gas installations • based on ITI certification • and national legislative regulations • 1) ACTNo. 174/1968 on State Inspection of Labour Safety • 2) DECREENo. 21/1979 for Restricted Gas Equipment

12. RESTRICTED GAS EQUIPMENT • = dedicated technical installations with increased rate of risk on personal healthy and safety, and property safety • = specially supervised by gas Inspectors according to Act No. 174/1968 (State Inspection) • = split into GROUPS A – G according to Decree No. 21/1979 TYPES OF RESTRICTED GAS INSTALLATIONS Group A – Gas Production and Gas Treatment Installations Group B – Gas Storage and Gas Transport Installations Group C – Gas Filling stations including Pressure stations Group D – Gas Liquefaction and Gas Evaporation Installations Group E – Gas pressure compression and reduction Installations Group F – Gas Supply Installations Group G – Gas Appliances used for combustion of gaseous fuels

13. INSPECTORS on Gas Installations • carry out tests and reviews (checks) on restricted gas installations • based on ITI certification • and national legislative regulation • DECREE No. 85/1978 Inspections, reviews and tests of Gas Equipment Gas Inspectors • draw documents (test records and review reports) used for assessment of gas installations in construction (commissioning) and operating of gas installations • According to Decree No. 85/1978: • operational controls on gas installations are performed every 1 year • reviews on gas installations are performed once every 3 years • periodical assessment of Gas Inspector's ITI certification – every 5 years • GAS Ltd. = servicing company of CGA • prepares seminars and workshops for Gas Installers and Inspectors • - based on national technical rules (code of practice) and legislation • examines and verifies the knowledge of Gas Installers and Inspectors

14. THANK YOU FOR YOUR ATTENTION Šárka Hladíková (Myšková) CZECH GAS ASSOCIATION Novodvorská 803/82 142 00 Prague 4 Czech Republic www.cgoa.cz