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EU Codes: Implementation Issues

EU Codes: Implementation Issues. Gas Forum Wholesale Markets Group UNC Transmission Workgroup, 9 th January 2014. Key Issues for Shippers. Framework Guidelines (FG) on Tariffs CAM I mplementation Governance Process. Framework Guidelines on Tariffs.

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EU Codes: Implementation Issues

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  1. EU Codes: Implementation Issues Gas Forum Wholesale Markets Group UNC Transmission Workgroup, 9th January 2014

  2. Key Issues for Shippers • Framework Guidelines (FG) on Tariffs • CAM Implementation • Governance Process

  3. Framework Guidelines on Tariffs • Fundamental commercial impact for Shippers • Ofgem Gas Transmission Charging Review (GTCR) • Application beyond interconnectors? • Gas Forum has launched a sub-group to consider impact on Shippers in more detail… • Although the Network Code has been requested to be drafted, there are areas within the FG which might be “open to interpretation”; for example, in relation to commodity charges: • Must all commodity charges be derived purely from volume-related costs? • Does the “5%” limit on revenues generated from commodity charges apply across the network, or just at IPs?

  4. CAM Implementation • Bacton • Capacity auctions – overall process and pricing remains unclear • Transfer of capacity between sub-ASEPs – how is this going to be handled? • Concern that interconnectors are somewhat different to “traditional” IPs and the imposition of CAM could restrict flexibility. New rules must not compromise the operation of the interconnectors, which have proved to be market responsive. • Need to take into account change in ownership of IUK capacity in 2018 • Gas Day change • how will implementation be handled for offshore and onshore? Different regimes?

  5. Governance Process • To date, GF members believe the process has been relatively well handled by National Grid • Consistent updates at Transmission Workgroup • NG engaging well with industry • We should not forget that industry has the option to defer implementation, if deemed necessary • To this end, we should programme review stages to consider viability of meeting various implementation timetables

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